Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

TI ready for next acquisition

Nigel Cope
Thursday 03 August 1995 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Specialist engineering group TI dropped strong hints that it was ready for another large acquisition yesterday, as it announced booming profits and strong sales increases in its three main divisions, writes Nigel Cope.

Announcing pre-tax profits up 25 per cent to pounds 87.4m for the six months to June, chairman Sir Christopher Lewinton said TI would stick to its three-year cycle of making a sizeable acquisition, then reducing gearing and integrating the purchase.

It is three years since TI's pounds 600m purchase of Dowty, and gearing has been reduced from 42 per cent last year to just 5 per cent. Debts have been reduced from pounds 136m to pounds 20m, clearing the way for another deal.

"We don't have to do any deals at all due to our strong organic growth," Sir Christopher said, "but we will continue to look for bolt-on acquisitions and look at other opportunities as they present themselves. We are well placed."

One analyst commented: "They are clearly back on the acquisition trail."

The City was impressed by TI's figures. The three main divisions - John Crane, Bundy and Dowty Aerospace - all saw like-for-like sales increase by more than 10 per cent. Profits in all divisions rose more than 20 per cent. Margins have increased from 10.6 per cent to 11 per cent in spite of higher redundancy costs.

However, Sir Christopher said market conditions were mixed and warned that a slowdown in the US automotive markets could affect demand.

Litigation is continuing in the US, where TI has been served with writs alleging that one of its subsidiaries defrauded the US Air Force of more than pounds 12m. TI is vigorously defending the action.

"These are very good figures,"one City analyst said. "The only question is whether TI can reproduce them in the second half." The shares finished 5p higher at 424p.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in