In a galling experience for the previous management, which wrestled with the problem for three or four years, TT Group Plc has turned AB Electronic Products around in record time, and the Welsh contract manufacturing business made a positive contribution of UKP5.5m, where it had been losing UKP1m a month when TT acquired it in January last year. Overall, TT made pre-tax profits for the year of UKP23.9m, up 44%. The AB turnaround came from shedding indirect employees – supervisors and storemen, and dropping low-margin contracts. And in November, AB won the contract to make 6m games cartridges a year for the Sega Enterprises Ltd Megadrive games machine. We also saw good growth from other part of the group, with underlying growth in the industrial and electronic divisions very good, the company said, adding that it was back looking for acquisitions, although the market is riding high and prices look too expensive – has the company been looking at what has been happening to the FT-SE 100 London share index over the past month?
