TT Group Plc, the Weybridge, Surrey group that seems to be able to work the management oracle where others have failed, had another good year in 1994. The holding company, whose subsidiaries manufacture and distribute industrial products, reported better than expected pre-tax profits up 49% to ú35.6m from turnover that rose 11% to ú397.3m. The group’s latest acquistion, Dale Electric International Plc, acquired in August for a ú16.3m cash and shares mix, is said by the company to be benefitting from the TT treatment. This includes tighter financial controls and and new costing systems. Dale Electric comprises three units in the UK, Dale Power Systems Plc, manufacturing diesel and gas turbine generators; Houchin Aerospace Ltd, which makes ground power units for airports, and Erskine Systems Ltd, which makes uninterruptible power supplies. Of the three divisions of TT Group, the Electronics & Industrial has been the most succesful over the past year. It increased its operating profits by 48% to ú27.5m. Both AB Electronic Products, acquired in 1993 and Magnetic Materials Group, bought a year earlier have contributed significantly to the division’s profits, and Dale Electric is expected to respond to further tweaking, greatly increasing its already positive contribution. The Packaging Division saw profits edge up 6% to ú8.7m, but the Building Services Division has suffered from the continuing recession in the construction industry, according to the company. It saw operating profits halve to just ú400,000 in 1994. At the start of this year the group had strong cash balances of ú42.3m, up from ú37.8m the year before. Outgoing chairman Tim Reed said in his statement that he expects progress this year from all divisions. Reed steps down this May after 20 years to become a non-executive director. The new chairman will be John Newman, currently joint chief executive. The board will recommend a final dividend of 3.3 pence, giving a total of 5.4 pence, a 23% rise on last year, when the figures were adjusted for the rights issue in 1993.
