Companies: TTG   

'Thank goodness for the automotive,' said executive chairman John Newman as the company reported its interim results. These showed pre-tax profits, before goodwill amortisation and exceptional items, down from £21.8m to £11.3m compared with the 6 months to June 2001 - but up from £10.3m in last year's second half. Turnover was £265.3m, down from £238.7m in the first half of 2001. The reason for such declines is familiar to companies selling to the telecoms sector: a collapse in demand. According to Newman, the situation got worse during the first half and is 'extremely unlikely' to recover in the second half. Hence his relief at rising sales of electronic sensors and related components to the automotive industry - up 8% year on year. Production in this sector will grow further next year, and the group has expanded its German factories to meet demand. The other businesses are performing in line with expectations. House broker HSBC's forecast for £31m pre-tax profits and 14.4p this year is likely to be maintained. Meanwhile the acquisition of a small European business is about to be completed. Newman professes to be 'interested, but cautious' about a bid for debt-laden Pressac, which has complementary operations. TT's shares look attractive for the dividends alone (the prospective yield is 8%). If you're holding this stock, keep holding.