Specialist engineer TT Group is looking for a number of bolt-on acquisitions in the UK, Germany and the US to expand its electronics division. It could spend up to £145m in an effort to meet forecast growth in demand from the automotive industry, said executive chairman John Newman.
TT manufactures sensors, resistors and electronic systems for car manufacturers. The firm’s power technology businesses make cables and generator sets. It also has a packaging business.
The power technology business posted an increase in operating profits of 65% to £9.1m, boosted by the wire and cable business acquired in March last year. The Far East crisis, however, showed in a drop in sales of generator sets in the region, down £7m on the same period last year at £22m.
TT this week recorded an increase in pre-tax profits of 15% to £32.6m on turnover up 10% at £323.5m for the first six months of this year.
But the strong pound was hurting business, and affected the profitability of glass container manufacturing business Beatson Clark, which also suffered a 16 week closure of one of three furnaces for refurbishment.
TT group employs 6,300 of its worldwide total of 8,560 people in the UK, and has 36 factories here.
Overall employment is expected to continue to fall, adding to the 500 jobs lost last year, as the company further invests in automating production.