TT Group Plc, the industrial holding company that took over AB Electronics Plc in January (CI No 2,064), intends to make a one-for-four rights issue at 240 pence per share to finance capital spending and fund further expansion. Holders of convertible shares will be offered five for every 26 that they currently own, and the issue will be underwritten by Samuel Montagu. The electronics and packaging firm hopes to raise UKP51m, which will go on further acquisitions and a capital expenditure programme, estimated to be worth more than UKP40m over the next two years. Since acquiring contract electronic manufacturer and components maker, AB Electronics, chairman Timothy Reed said the Waybridge, Surrey-based group had cut debt by UKP12.1m. And although AB was loss-making when TT bought it, it has slashed overheads and cut headcount. As a result, AB has traded profitably since March. AB Electronics has made a positive contribution to the profits of the group in the six months to 26 June 1993, and we believe that its profitability will continue to improve, Reed said. The proceeds of the rights issue will help to finance the opportunities arising out of the acquisition. TT also forecast an interim dividend of 2.6 pence and a total of no less than 6.6 pence for the year to December 25.
