Tt Electronics

April 2010

FANA Module – Assignment 1 Analysis of TT Electronics PLC.

Yasser Elkhouly Dubai Center Assignment Ref:

Student ID: 7474987 FANA/JAN10/1

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2009 Key ratios
Return on Equity (%) Operating Margin (%)
Source: Annual Report (FYE09, 08).

2008

2009

2008 Gearing (%) Operational Gearing (%)

2009

5.4 4.6

0.0 1.3

25.3 23.3

32.1 25.1

- LSE. Ticker: TTG - Sector: Electronic & Electrical Equipment

SWOT Analysis
Strengths - Sound Geographic Diversification. - Selective Acquisition Strategy. - Effective Operation Restructuring. - Reducing Exposure to Automotives. - World-class Engineering Capability. - 2009, Notable Control of WC & Net Debt. Opportunities - New Strategic Initiatives. - High-growth Application-specific Markets. Weaknesses - Excess Capacity Pressures Margins. - Depending on a Relatively Few Number of OEM Customers. - Secure Power, not a natural fit. - Disparate Technology Versions Adopted by Acquired Entities. Threats - Cyclical Automotive Industry. - Uncertainties related to Technology Development & its Transfer. - Exposed to FOREX and Interest Rates Movements. - Competing against Manufacturers in Asia.

About the Business
TT Electronics headquartered in leafy Weybridge, is a global manufacturing and technology company. It sells a bewildering variety of electronic components to the world's leading manufacturers in the automotive, defence, aerospace, telecommunications, computing and industrial electronics markets. A main market share and has sales of £500 million. A global business, it has manufacturing, engineering and sales support facilities in North America, Europe, the UK, Mexico, Barbados, Malaysia, Japan, Singapore, Hong Kong, India and China. Effective January 1st. 2009, TT is organized into five business areas:
2009 Sales by segment



Components: focusing on the delivery engineered, markets aerospace, transit. of niche, bespoke including medical, and highly electronic military,...