UK's TT Electronics profit soars as turnaround efforts gain traction

Sept 2 (Reuters) - Electronic components maker TT Electronics forecast full-year profit to exceed current market expectations on Wednesday after posting a 37% jump in half-year profit, as orders increased and its turnaround efforts helped cut costs.

Here are some details:

• TT now expects 2026 adjusted operating profit to be ahead of the current market view of £35 million ($47.27 million) on average in a company-compiled consensus.

• The company is implementing a cost-reduction programme that includes site closures and organisational changes, while reviewing its portfolio.

• Shares of the company rose as much as 11.9% to 151 pence in early trading, the highest level since November 2025.

• TT said it had received an "encouraging" level of interest following a strategic review of its Components business and is evaluating a potential divestment, though any transaction would depend on valuation.

• "The first half demonstrates that the actions we took in 2025 are starting to deliver tangible results," CEO Eric Lakin said in a statement, adding that order intake had been strong across all its divisions.

• The company, whose takeover talks with Swiss firm Cicor Technologies collapsed earlier this year after failing to secure sufficient shareholder support, also expects revenue to return to organic growth in the second half.

• TT said its cost-reduction programme remains on track, with annualised savings from fiscal 2027 onward expected to exceed £6 million.

• The company reported adjusted operating profit of £18.5 million for the half year ended June 30, compared with £13.5 million a year ago on an organic basis.

($1 = 0.7404 pounds)

(Reporting by Ankita Bora in Bengaluru; Editing by Rashmi Aich)