TT Electronics has reported a 5% drop in revenue in 2024, after growth in Europe and Asia was "offset" by its North American results.

The firm, which engineers and manufactures electronic solutions for critical applications, recorded a 13% fall in its operating profit in the 12-month period to 31 December 2024.

It also reached a statutory operating loss of £23.5m, which included a £52.2m write down of goodwill and fixed assets in North America.

Furthermore, its dividend fell by 67% from 6.8 pence per share to 2.25 pence.

TT Electronics has launched Project Dynamo, which is set to save £17m in cost savings by 2026, with progress evident in Europe and Asia.

However, it has noted that the "uncertain and volatile macroeconomic backdrop" that it operates in could have an "impact beyond severe downsize case creating material uncertainty".

In its outlook statement, TT Electronics pointed toward the changes in trade tariffs that have led to uncertainty in its current financial year.

It stated: "In 2024, our European and Asian regions have delivered strong improvements in profitability. However, this progress has been more than offset by continued demand softness in our components business in North America and operational issues in Kansas City and Cleveland.

"The board is mindful of the increased market uncertainty arising from the recently announced trade tariffs and the potential impact on demand patterns. Given the current macro backdrop the board sees a wider range of potential outcomes for 2025."

It added that with Project Dynamo continuing, it now expects to reach an operating profit in the range of £32m to £40m in 2025.

TT Electronics added: "The board also remains focused on driving performance towards its medium-term financial framework and while it does not expect to achieve a 12% operating margin in 2026, its confidence in the medium-term for the business is underpinned by its operational improvement plans, expectation of continued momentum in Europe and Asia, and an anticipated improvement in the North American region."

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