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Volex makes a second 'highly attractive' offer for TT Electronics, urging shareholder engagement

2025-05-17 13:44:42 By

An SMT operator at the TT Electronics plant

Volex, the listed manufacturing specialist, has declared its second bid for TT Electronics to be "highly attractive", with the company's chief, Lord Rothschild, calling on shareholders to engage.

The initial offer included 62.9 pence in cash and 0.203 new Volex shares for each TT Electronics share, while the follow-up proposal offered 62.9 pence in cash and 0.223 new Volex shares, implying a value of 135.5 pence per share, as reported by City AM.

Despite this, the board of TT Electronics has not engaged with Volex and has turned down both proposals.

Now, with Thursday's prices taken into account, Volex's revised proposal would place the value at 139.6 pence per TT Electronics share, putting the fully diluted share capital valuation at £248.6 million.

Volex's board has communicated to its shareholders that it strongly believes the second proposal presents an extremely appealing opportunity for TT Electronics shareholders.

This announcement comes as TT Electronics has announced further job cuts as part of its strategy to counteract "substantial market challenges".

Lord Rothschild, executive chairman of Volex, commented: "We believe that bringing Volex and TT Electronics together in a highly synergistic transaction would create a scaled and diversified leader in the specialist electronics market."

He added, "Despite the resilience of TT Electronics' underlying business, it has faced persistent challenges in recent years, which Volex believes have been exacerbated by execution missteps by the board."

The executive chairman of Volex, Nat Rothschild, has pointed out that since 1 January 2018, the share price of TT Electronics has fallen by 65 per cent, while Volex's has surged over 300 per cent.

"I therefore strongly encourage TT Electronics shareholders to urge the TT Electronics board to engage with Volex in delivering an expeditious and highly attractive outcome for all stakeholders," he added.

This statement comes as Volex announced its half-year results, which showed a revenue increase of over 30 per cent to $518.2m (£408m). This includes strong organic growth of nearly 10 per cent, along with a rise in sales of electric vehicles and consumer electricals.

Volex reported that its underlying operating margin was "comfortably maintained" within the target range, and its interim dividend increased by over 7 per cent to 1.5 pence per share.

Rothschild stated: "the strong performance during the period demonstrates once again that our strategy is working".

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Manufacturing

Turnover tops £300m at Northumberland family firm Simpsons Malt

2025-05-17 13:44:42

Turnover has topped £300m at Northumberland agricultural merchant Simpsons Malt, which saw profits jump 60% on the back of a key acquisition. The 161-year-old business, a fifth-generation family-owned firm, uses UK barley to produce malt at Tweed Valley Maltings in Berwick-upon-Tweed, Northumberland, and Tivetshall Maltings in Norfolk, while also operating an agricultural merchant division, McCreath Simpson & Prentice, in Northern England and Scotland. The company has published accounts for 2023 showing pre-tax profits rose from £9.5m to £15.2m, while turnover increased from £273.8m to £301.3m. Directors said profitability increased because of a number of factors, including the acquisition of WN Lindsay Limited in 2021 which allowed the business to procure record levels of grain direct from farms, surpassing previous record totals chalked up in 2022. Staffing levels also rose from 366 to 387 in the year. The company was also delivered a boost by record high malt sales values, which were driven by cereal and energy costs, which were seen across the whole UK malt market. The company said malt demand remained strong with distilling volumes increasing significantly, more than offsetting reduced brewing volumes. It added: “The malting division enters 2024 with raw material costs decreasing, malting barley usage normalising and healthy levels of forward malt sales. Although the highs of 2023 will not be repeated in 2024, the prospects for the malting division remains positive.” The rise in profits triggered record investment during 2023 with more than £20m ploughed into projects across the group. Projects to increase base malt and peated malt production at the company’s Tweed Valley Maltings in Berwick were completed in the third quarter of this year, while malt storage projects at both malting sites are set to be completed later this year. Planning permission for the company’s proposed maltings in Rothes, Moray, was granted in December 2023, and further investment is set to be made this year in preparation for future development. Speaking about the financial results for 2023, Simpsons Malt Ltd managing director Tim McCreath said: “We’re pleased to be able to report a strong set of financial results with turnover exceeding £300m for the first time, primarily as a result of record high malt and grain values. In 2024, we have healthy levels of malt sales and grain contracting for this year’s harvest progressed well. “Raw material costs have also decreased, as have market values and volatility in the merchanting division, so while the highs experienced in 2023 will not be repeated this year, prospects for both the malting and merchanting divisions remain positive.” The accounts also pay tribute to the company’s late chairman, Simon Simpson, and its late non-executive director, David McCreath, adding: “With over 132 years of collective experience, Simon and David will be fondly remembered for their vision, passion, and wisdom.

Manufacturing

Greencore hails 'outstanding' performance as it gives meal deal profit update

2025-05-17 13:44:42

Convenience food producer Greencore, the company behind many supermarket meal deal sandwiches, has announced that it expects its full-year profit to surpass current market predictions, as reported by City AM. In a trading update released today, the company, which supplies a wide range of products including salads, sushi, snacks, ready meals, and soups to the UK's major supermarkets, reported a 3.7% year-on-year increase in like-for-like revenue growth for the fourth quarter, with full-year growth also rising by 3.4%. Greencore anticipates reporting full-year revenue of approximately £1.8 billion, following an "encouraging" fourth quarter in terms of like-for-like volume performance. The company's fourth-quarter profit conversion exceeded expectations, with full-year adjusted operating profit now projected to be higher than the current market forecast of between £95 million and £97 million. Chief Executive Officer Dalton Philips commented: "The Greencore team delivered an outstanding performance with our FY24 results now expected to exceed current market expectations." "Providing high-quality, fresh and healthy food to our customers every day is at the heart of what we do. To all our colleagues who work tirelessly to make this happen I would like to say a huge thank you." He added: "As we enter the new financial year, our focus remains on making really great food, rebuilding our profitability, and positioning Greencore to be the UK's leading convenience foods manufacturer." "We'll share more detail at our 2024 results in early December, and will use our capital markets day in early 2025 to outline our medium-term growth strategy." The Dublin-headquartered company is set to host an event for analysts and institutional investors in London on 5 February, with its full-year results scheduled for release on 3 December. Greencore, which also supplies the convenience, coffee shop, and travel retail sectors, stated that it has maintained a "strong focus on improving returns across our portfolio", including implementing operational efficiencies in areas such as waste management and among its 13,600-strong workforce.

Manufacturing

Imperial Brands hikes shareholder returns for 2025

2025-05-17 13:44:42

Bristol-headquartered tobacco giant Imperial Brands has increased shareholder returns on the back of new product growth and a reduction in debt. The FTSE-100 company, which is based on Winterstoke Road and is behind brands including Davidoff and Golden Virginia, said trading was in line with expectations. Imperial told investors on Tuesday that capital returns to stakeholders for the financial year ending 2025 would rise to around £2.8bn, including a share buyback of £1.25bn - an increase of 13.6%. It also said there would be a cash dividend of around £1.5bn payable next year as part of a move to four equal quarterly dividend payments in the future. The annual dividend for 2024 rose by 4.5% to 153.43 pence per share. “We are pleased to report another year of operational and financial delivery against our five-year strategy to transform the business,” Imperial said. “At constant currency, we are on track to deliver in line with our full-year guidance with an acceleration in tobacco and next generation product (NGP) net revenue growth vs last year.” Imperial said constant currency tobacco and NGP net revenue growth had “strengthened” over the same period last year due to strong pricing. NGP revenue is expected to grow 20%-30% at constant currency rates. The business also said it had made gains in the US, Spain and Australia, broadly offsetting declines in Germany and the UK. “Our results this year have benefited from the launch of innovative products with new formats under the blu brand, new iSenzia non-tobacco heat sticks and new flavours in the modern oral segment,” the firm said. “Our entry in the US oral nicotine category with the launch of the Zone range of pouches has been well received and supported a stronger NGP performance in our US business.” Derren Nathan, head of equity research at Hargreaves Lansdown, said Imperial’s "narrowed focus" on core markets was helping it keep organic growth moving when larger rivals have been going in reverse. “Imperial Brands is managing to drive growth not only in its fledgling next generation brands, but also in ‘legacy’ tobacco products which still make up the lion’s share of the business," he said. In aggregate, tobacco volume pressures have eased across the company’s focus markets, and despite slowing price hikes for the pleasure of lighting up, pricing has been strong."

Manufacturing

Swizzels Matlow sees profits halve despite sales surge to nearly £100m

2025-05-17 13:44:42

Swizzels Matlow, the confectionery company known for Love Hearts and Refreshers, saw its profits halved in its most recent financial year, despite a surge in sales to nearly £100m. The firm, based in the Peak District, reported a pre-tax profit of £4.4m for 2023, a significant drop from the £8.2m recorded in 2022. According to recently filed accounts at Companies House, Swizzels Matlow's turnover rose during the same period from £89.3m to £96.6m, as reported by City AM. The company's UK turnover increased from £76.6m to £80.8m over the year, while its European sales also grew from £10.1m to £13.2m. However, its sales in other global markets remained steady at £2.6m. Over the course of the year, the average number of employees at Swizzels Matlow increased from 561 to 578. These results follow the completion of a new manufacturing and warehouse site in Middlewich, Cheshire. The new facility is expected to significantly boost production capacity, according to Swizzels Matlow. A statement approved by the board read: "The group continues to invest heavily in new equipment in order to improve efficiency and product quality." During the year, Swizzels Matlow reached an agreement with M&S following accusations that it had copied its Percy Pig sweets. As part of the "amicable resolution", Swizzels Matlow agreed to alter the design of its Pigs Mugs sweets. M&S initially claimed in November 2022 that the sweets were too similar to its own. As per a 37-page document submitted to the High Court in London, since its inception in 1993, the Percy Pig brand has amassed a turnover of £131.7m.

Manufacturing

£15m investment sees Pure Pet Food gear up for expansion

2025-05-17 13:44:42

A Yorkshire pet food company is poised for growth after sealing a £15m investment. Pure Pet Food, based in Cleckheaton, West Yorkshire, provides personalised dog food delivered to customers’ doors and has completed the multimillion-pound funding round led by Felix Capital and including Mercia Ventures. The firm was founded in 2013 by childhood friends Daniel Valdur Eha and Mathew Cockroft with a £300 loan and a mission to revolutionise the pet food market by creating an alternative to traditional kibble. The firm makes and markets natural, healthy and easily digestible food for dogs, tapping into growing demand for healthy meals for pets. Since its launch the business has grown to employ more than 100 people at its manufacturing site and offices, serving 40,000 regular customers throughout the UK who pay a monthly subscription to receive deliveries of pet food tailored to their dog’s needs. The company appointed new CEO Roz Cuschieri in April 2023, who has previously held board roles at Warburtons and Genius Food, to work alongside the founders, a move which encouraged the founders to seek additional external investment to fuel further expansion both in the UK and new markets, as well as develop its distribution channels and product categories. Felix Capital – which has previously invested in businesses including Castore, Moonbug, Deliveroo and Oatly – led the £15m investment round alongside participation from existing investor Mercia Ventures. Mat Cockroft, co-founder of Pure Pet Food, said: “We are thrilled to partner with Felix Capital, whose team have demonstrated exceptional support and collaboration. Having one of Europe’s leading consumer investors involved in the business marks a significant milestone for us, and we are excited to shape the future of Pure together. “We are also delighted for the ongoing support from our current investors and team, who believe in our mission and sector. Dan and I have come a long way from starting Pure. Our ambitions have grown alongside the business, and we are eager to continue in our quest to create food that makes a profound impact on the health and happiness of our dogs.” Antoine Nussenbaum, co-founder and investor at Felix Capital, said: “We will always remember the first visit to Pure’s offices. We witnessed everything we like to see in an entrepreneurial journey. The longstanding relentless drive from Mat and Dan, combined with Roz’s amazing experience in consumer-packaged goods is a true recipe for success.” Jan Oosthuizen, investor at Mercia Ventures, added: “Pure has gone from strength to strength in recent years, a testament to the dedication and hard work of Dan, Mat, Roz and the team. The company’s vision and ambition consistently excite us, so we are delighted to continue to support them in their pursuit of future milestones and to partner with Antoine and the wider Felix team.”

Manufacturing

Tarmac sheds jobs as turnover at building materials giant hits £2bn

2025-05-17 13:44:42

Tarmac, the building materials group, has reported a turnover of £2bn during its latest financial year, marking an increase from the previous year's £1.99bn. The Solihull-based company also saw a significant rise in pre-tax profit, climbing from £125.9m to £168.1m, according to accounts recently filed with Companies House, as reported by City AM. Despite this financial upturn, Tarmac experienced a reduction in workforce numbers, dropping from 2,782 to 2,621 employees over the year, which led to nearly £5m in redundancy costs. In light of its stronger financial performance, the firm reduced its interim dividend from £230m down to £127m. Owned by Dublin-headquartered CRH plc, an international conglomerate of diversified building materials businesses, Tarmac's origins date back to 1903, although it was established in its current form in March 2013 following the merger of Anglo American's Tarmac UK and Lafarge's UK operations. The company enjoyed a £141m boost, as stated by the board: "The improved performance can be predominantly attributed to the £141m dividends received in the year." The statement further noted: "Underlying market conditions were relatively stable in 2023 albeit with variable levels of growth seen across the industry, with expansion in the infrastructure sector offset by a marked decline in residential." The company noted: "Cost inflation continued to be a factor during the period, albeit at lower levels to what has been experienced during 2022." They added that the effect of this had been offset by an optimisation program which delivered "The company has mitigated the impacted of this through an optimisation programme delivering benefits through commercial, operational and logistics excellence." For the same financial year, building materials giant CRH plc reported revenues of $34.9bn (£26.8bn), a seven per cent increase. Chief executive Albert Manifold commented on the results: "2023 marked another record year of financial delivery for CRH, supported by good underlying demand across our key end-use markets, further pricing progress and the continued benefits of our differentiated, customer-focused strategy."

Manufacturing

Rix Petroleum snaps up fellow Humber business in undisclosed deal

2025-05-17 13:44:42

Fuel business Rix Petroleum has snapped up a fellow Humber business to extend its services to domestic customers. Rix – part of 150-year-old family business J R Rix & Sons Ltd based at Two Humber Quays on Hull’s waterfront – has acquired Phoenix Heating Specialists, based on the east side of Hull in Preston, for an undisclosed sum. The move comes after the Hull company acquired two other domestic energy sector businesses to complete the family company’s heating and plumbing services for residential customers across the region. Phoenix Heating Services will be rebranded as Rix Gas Services as part of the deal, and will join group businesses Rix Heating Services, Rix Electrical Services, and Rix Plumbing Services at their base in Bank Side, central Hull. Duncan Lambert, managing director of Rix Petroleum, said the acquisition would ‘future-proof’ the company’s domestic energy services, enabling it to install, service, and maintain oil, gas, electrical, and renewable-based heating systems. He said: “As a business with a 150-year heritage in Hull and East Yorkshire, we have always taken great pride in being able to offer the products and services our customers need to keep their houses warm and dry. But as technologies develop, and the variety of heating systems available expands, we needed to update our skills and services to ensure we can continue to do this. “This latest acquisition completes our offering, giving us comprehensive services across all domestic energy types, including oil, gas, electricity, and renewable technologies. I’m delighted to welcome Phoenix Heating Specialists into the Rix family. The move not only helps to futureproof our business, it ensures we can continue providing the trustworthy service we’ve become known for over the past century-and-a-half.” Phoenix Heating Services was launched by owner-manager Matt Dixon and employs four staff, all of whom will move across to the Rix Group. Mr Dixon said having the backing of the Rix Group would enable the business to grow much more rapidly than if it had stayed independent.

Manufacturing

Elon Musk's Tesla faces delivery shortfall, impacting stock prices

2025-05-17 13:44:42

Tesla's shares experienced a 5.4 per cent drop on Wednesday following the electric vehicle (EV) company's third quarter deliveries falling short of expectations. The firm, led by Elon Musk, dispatched 462,890 EVs in the three months leading up to 30 September, marking a 6.4 per cent increase from the previous quarter and the first rise in deliveries this year for the automaker, as reported by City AM. However, this figure fell short of the 466,000 EVs delivered during the same period last year and narrowly missed Wall Street's prediction of nearly 463,900, as reported by Bloomberg. In order to stay on course to achieve its target of two million vehicles delivered this year, Tesla required 585,000 deliveries in the third quarter. As such, a significant fourth quarter is now necessary to meet this goal. Despite grappling with sluggish demand and competition from Chinese competitors, the Texas-based company has managed to accelerate through insurance deals, zero-interest loans, subsidies in China, and free charging. Dan Ives, senior equity research analyst at Wedbush Securities, described the deliveries as "good and a step in the right direction," He added: "Overall, this is a clear improvement from the first half and we believe getting in the range of 1.8m for the year is still the key and important bogey,".

Manufacturing

Jones Village Bakery creating 50 new jobs on strong export growth

2025-05-17 13:44:42

Jones Village Bakery is creating 50 new jobs after landing new contracts in the Middle East and Australia. The Wrexham-based business said its exports are forecast to break the £10m barrier this year. Recent export deals include supplying gluten-free products to seven Gulf States in the Middle East. Earlier this year the company started shipping products to Australia where the company’s pancakes are being sold across the country. The bakery is also experiencing surging demand from Europe, particularly in France, Germany, Belgium and Holland. It is also supplying a worldwide network of around 200 M&S stores – as far afield as Hong Kong, Singapore and the Middle East – which are selling its crumpets, scones, pancakes, bagels, rolls, Welsh Cakes and pikelets. Read More : Wrexham cereal factory to become biggest in Europe on £75m investment Read More : PwC confirm major expansion with new Welsh HQ Commercial director Lesley Arnot said: “Our exports are doing really well for us and we are going from strength to strength in all the different countries that we’re dealing with and we’re adding a few more on the order book. We’re also enjoying success in the Middle East where we’ve launched across several different countries with two different retailers out there. I’m absolutely delighted with the way things are developing – and there’s much more to come as well. We have some really good foundations for expansion into other export markets.” Chief executive Robin Jones said: “Exports are really taking off and the team are doing an absolutely brilliant job, finding some great partners and distributors. Our target of increasing overseas sales to £10 million is very realistic with the way things are going in Australia, the Middle East and Europe. It’s really exciting. “We make really, really good quintessential British products and there’s clearly a growing appetite for them at home in the UK but also abroad “It’s wonderful to think you can buy Village Bakery products in so many places across the world, whether that’s Australia, Hong Kong, Singapore or across so much of mainland Europe. “This is all creating extra volume here so it feeds into sustaining existing jobs and creating new ones which all adds up to boosting the local economy here in Wrexham.” The company’s success with overseas sales has been recognised by the Welsh Government with a Welsh export champion validation.

Manufacturing

Bank of England printer De La Rue agrees to £300m breakup

2025-05-17 13:44:42

De La Rue, the Bank of England's banknote printer, has agreed to a £300m sale of a division of its business to an American firm. The London-based company announced this morning that it had entered into a definitive agreement for the sale of its authentication arm to Crane NXT, a New York-listed industrial technology company. Upon completion of the sale, De La Rue will solely be a currency printer, abandoning its authentication business that assists government clients in detecting fraud. This sale follows a series of issues for the company, including most recently being compelled to postpone significant pension payments into its retirement fund, as reported by City AM. "Completion of the sale will allow us to repay our existing revolving credit facility in full ahead of its maturity on 1 July 2025 and will provide a springboard to unlock further intrinsic value as we move to find a long-term funding solution for the group's legacy defined benefit pension scheme," stated De La Rue chair Clive Whiley. The company also added that an additional £12.5m in deficit repair contributions will be paid into the pension scheme over the next three years. In July, De La Rue confirmed it was in discussions to sell off a portion of the company, which was announced alongside the printer's full year results that had already been delayed in order for the firm to find a potential suitor. De La Rue reported a decline in earnings in line with forecasts, attributing it to "substantial trading difficulties", as its revenue fell 11.3% from £350m to £310m. Nonetheless, the entity's authentication division enjoyed a 12.5% increase in revenue, exceeding the company's set goal of £100m. "The sale of our authentication division to Crane NXT represents a substantial step forward on our route to realise the underlying intrinsic value of the De La Rue business for the benefit of all stakeholders," remarked Whiley. "We are delighted to reach agreement with a company with the stature of Crane NXT, with its complementary strengths and are confident that the authentication division will continue to build on its considerable successes over the past few years." Furthermore, the statement continued, "In addition, we will be able to focus fully on building and growing our world-leading currency business."