SHARE PEREL OF THE WEEK: TT Electronics offers a less valued road to the automotive sector
City & Finance Reporter for the Daily Mail
TT Electronics has 21 production sites and seven sales offices around the world
Who is it? With cars that steal the imagination of investors this week, TT Electronics is a company that offers a more detour and less highly valued route to the sector.
The specialized electrical engineer is based in Woking, Surrey, and has 21 production sites and seven sales offices around the world.
Although it concentrated almost exclusively on the automotive sector, it has expanded to include electric vehicles, aerospace, robotics and automation.
What is the most recent? TT has implemented a strategy to come up higher in the value chain, to make internal improvements and to make a number of acquisitions.
In the half-year results last month, investors were impressed by the fact that TT's profit margin exceeded the prognoses to reach 7.5 percent.
This was much better than the 4.3 percent in 2015 when boss Richard Tyson joined this group, and is a sign that the improvement strategy is bearing fruit.
Who supports it? Big-name fund manager Fidelity International is TT's biggest shareholder.
Other top ten investors include fund companies, Aberforth Partners and Schroders, and investment banks UBS and JO Hambro.
Why would you invest? Russ Mold, investment director at AJ Bell, says: "Acquisitions such as the UK & # 39; s Stadium Group and Aero Stanrew, as well as America's Precision, help TT go beyond its traditional markets of sensors and instrumentation. to more profitable digital niches. & # 39; also has very little debt to pay.
And why not do that There are questions about how much higher the company will be able to climb. Mold adds: & # 39; There is still a risk that larger, more powerful rivals will lift the pressure on TT to confuse the margin expansion plans. & # 39;