TT Electronics has stated that its second half revenue is expected to be between £15m-20m lower than previously expected, after "weak" trading results in August.

The engineer and manufacturer of electronic solutions for critical applications said that the latest results are down to operational efficiency issues in two North American sites which are impacting both revenue and profitability.

Alongside the drop in revenue, the firm expects its operating profit in North America to drop by between £13m-18m and is set to be in the range of £37m-42m across the group.

In a statement, TT Electronics said: "We are experiencing operational efficiency issues in two sites which is impacting both revenue and profitability. As a result of these issues, execution of the order book is taking longer than expected and the group is incurring greater than anticipated costs of production.

"Clear plans have been put in place to rectify the issues during the remainder of the year and potentially into Q1 2025, including root cause corrective actions, improved factory planning and factory layout, however, these are not expected to sufficiently mitigate the impact in FY24.

"Furthermore, over the course of August and so far in September whilst overall order intake has continued to be positive, the order intake for execution in 2024 in our higher margin components business has been materially weaker than anticipated with the orders received in Q3 more weighted for delivery in 2025, and recovery is slow and steady."

Looking ahead, the firm said that the rest of the group continues to perform "broadly in line with expectations", despite the drop in profit expectations.

It added that with the lower operating profit, there will be a reduction in its net cash flow for 2024, resulting in net debt to adjusted EBITDA to now be expected to be around, or marginally above, the top end of its one-two times range by December 2024.

The firm stated: "The company will update on the 2025 revenue outlook and rectification of the operating issues in the North American sites, together with further cost efficiencies, in the November trading update."

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