Companies: TTG   

TT continued to suffer demand decreases from the telecoms, computers and general industrial markets in 2002, resulting in its pre-tax profits falling from £29.9m to £20.4m (excluding impairment provisions and goodwill amortisation). Turnover on continuing operations fell from £594.6m to £520.3m, with the shortfalls from other user markets mitigated by continuing sales increases of sensors and electronic systems to the automotive industry. But undoubtedly the main attraction of the shares is the yield, with total dividends for the year having been maintained at 10.07p, out of 10.1p earnings per share. Some analysts muse about the lack of cover from the company's earnings and, indeed, one might think that the group could invest more in new products instead. But a 12% return at the current share price (which is a ten year low) is hardly to be sniffed at in the current environment, and the group's balance sheet looks far from stretched with gearing at only 27%. The asset position, though not of prime importance for a company like TT, also looks reasonably strong with tangible NAV of £175.5m - well above the current market value. House broker HSBC is expecting £21.9m in pre-tax profits and 10.3p of EPS this year. The final dividend will be paid to shareholders on the register on 9 May.