Companies: TTG   

TT Electronics, the resistor and sensor producer, is reaping the benefits of targeting the automotive industry after the decline in the telecoms and computer sector three years ago. Profit growth, before tax and exceptionals, for 2004 was 50.5% to £30.1m on a 12% increase in turnover to £597.4m. TT operates two divisions: electrical, which represents 32% of turnover, and electronic, which comprises the rest. It has factories in the UK, Mexico, the Ukraine and now China, following a policy of manufacturing in low-cost areas adjacent to its markets. In March, TT acquired Dage, a profitable contract electronics manufacturer based near Shanghai. Alongside existing operations, the company's other divisions will occupy space on the site to sell products to Chinese customers only. While the automotive market was static for much of the year, TT increased its sales to the sector by 10%. Chairman John Newman commented that to boost sales further there need not be an increase in car manufacture, as the trend to use electronics to replace old technologies is rapidly increasing. TT has close relationships with BMW and DaimlerChrysler. The telecoms and computer sectors are in recovery but some of TT's cable manufacture is no longer competitive and a factory in Merseyside was closed down. Its Gravesend factory will also close and could cost up to £3m although this will be more than recouped when the site, worth at least £13m, is sold. Add for further progress in 2005.