TT Electronics significant increase in TT’s annual free cash flow

TT Electronics plc (LON:TTG), a global provider of engineered electronics for performance critical applications, has announced that it has completed a buy-in of all its UK defined benefit pension liabilities giving an immediate £6 million cash flow benefit.

The Trustee of the TT Electronics Pension Scheme (the “Scheme”) has purchased a bulk annuity insurance policy from Legal and General Assurance Society Limited (“L&G”), covering all liabilities required to pay all future defined benefit pensions for the Scheme’s circa 5,000 members and any eligible dependants.  

The purchase of this insurance policy is the successful culmination of extensive work over the last few years by TT and the Scheme Trustees.  The insurance policy has been purchased using existing assets held within the Scheme, without the need for TT to make any additional contributions.

TT will not be required to make any future contributions into the Scheme regarding defined benefit liabilities and the buy-in delivers greater security to the Scheme’s members. The Scheme’s circa £400 million of liabilities are now matched by the insurance policy, and TT no longer bears any investment, longevity, interest rate or inflation risk in respect of the Scheme. 

There will be an immediate benefit to the Group’s current year cash flow of £6 million and an equivalent annual improvement to free cash flow in future years.

The pension benefits that Scheme members will receive in the future are almost entirely unaffected by this transaction.

Mark Hoad, TT Chief Financial Officer commented:

“This transaction is an excellent outcome for our defined benefit pension scheme members, TT and our shareholders. We have worked hand in hand with the Scheme’s Trustee over the last few years to reach this position. Those efforts, combined with excellent stewardship by the Scheme’s Trustee Directors, has meant that the Scheme can now be fully de-risked for the benefit of members and the Group. 

Importantly, the successful execution of this transaction means there will be a significant increase in TT’s annual free cash flow.”

Click to view all articles for the EPIC:
Or click to view the full company profile:
TT Electronics

More articles like this

Touchstone Exploration

Trinidad and Tobago’s potential in the Energy sector

TT’s prospects in the increasingly dynamic oil, gas and wider energy sectors are not under threat. In fact, this country can lead in the pivotal field of CCUS (carbon capture, utilisation and storage). Students and young

TT Electronics

TT Electronics at the Aircraft Interiors Expo 2023

Aircraft Interiors Expo is the world’s leading event for airlines and the supply chain to source the latest innovations, technologies and products for the cabin interiors, inflight entertainment and passenger comfort industries. TT Electronics’ aircraft interior

TT Electronics

Healthcare Technologies? We do Amazing Things!

The speed and pace of medical advancement is greater now than at any time in the history of healthcare. We are seeing transformational changes to the way we diagnose and then treat illnesses right across the

TT Electronics

Janus Henderson outlines investment opportunities in 2023

Portfolio managers at Janus Henderson Investment Trust discuss their market predictions for 2023. Despite a challenging 12 months, including soaring inflation and the UK officially being in recession, portfolio managers at Janus Henderson Investment Trust believe that there

TT Electronics

TT Electronics appoints two new Non-Executive Directors

TT Electronics plc (LON:TTG), a global provider of engineered electronics for performance critical applications, has announced that Wendy McMillan and Michael (“Mick”) Ord will join the Board as Non-Executive Directors on 16 January 2023.  Both will serve

TT Electronics

TT receives supplier excellence award

TT Electronics, has earned a Supplier Excellence Award from Applied Materials, Inc., the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Applied’s Supplier Excellence Awards recognize the

TT Electronics

TT Electronics integrates with C3 data

Effective immediately, C3 Data’s real-time pyrometry compliance software enables digital uploading of certificate data of all TT Electronics thermocouples. TT Electronics is a leading UK provider of thermocouples and design-led advanced electronic technologies for performance critical

TT Electronics

Customised power supplies for CO2 monitors

Flamefast contacted TT Electronics with a high volume, time critical project to install their carbon dioxide monitors in schools, offices, and other populated indoor spaces to help reduce the spread of Covid-19. Initially over 50,000 power supplies

TT Electronics

TT Electronics: Attracting new customers

Recognised for its expertise in custom electromagnetics and electronics and electromechanical assembly, TT Electronics’ customers trust it to meet and exceed their demanding requirements The Barnstaple facility of the TT Electronics group (formerly Aero Stanrew) began

TT Electronics

Temperature sensing instrumentation for glass manufacturing

A common measurement challenge for today’s glass manufacturers is the need for consistent, accurate temperature control. Glass furnaces operate over high temperatures ranging from +1100 °C to +1600 °C. Associated instrumentation must therefore offer necessary extreme

TT Electronics

TT Electronics to showcase at electronica 2022

TT Electronics, a global provider of engineered technologies for performance critical applications, will highlight its extensive portfolio of sensing technology and resistors products at electronica 2022 in Munich from 15-18 November.  TT will display its wide range

TT Electronics

​TT Electronics introduces new resistors

Aluminum Nitride (AIN) Ceramic Substrate With the ever-increasing density of electronic components on modern printed circuit boards (PCBs) and applied power, the temperature of individual components and entire devices inevitably starts to rise, so thermal management