RNS Number : 6526U
TP Group PLC
16 July 2018
TP Group (AIM: TPG), the specialist services and engineering group, announces the following trading update for the six months ended 30 June 2018.
The Board is pleased to report that the Group has made a strong start to 2018. In a very active first half year, the focus has been on developing the business in key sectors and geographies. The Board remains confident in current trading and expects the Group to deliver full year results in line with market expectations.
Since January, the Group has successfully closed a number of important orders, including:
£12.5m of UK framework contracts for submarine equipment for oxygen generation systems;
a five-year framework agreement with Naval Group in France leading to a firm £2m order for atmosphere management equipment;
two contracts with the MoD for TPG Services through our Enterprise Technical Alliance initiative; and
a £1.2m order for specialist technical and project support to Army HQ.
As part of our organic growth strategy, we continue to invest in our manufacturing capabilities. In February, we opened a new Advanced Manufacturing Centre in Manchester, which is now fully operational, working on complex equipment projects and specialist component machining. The new facility has demonstrated our growing capability to both new and existing clients and opened discussions about larger projects in sectors beyond our traditional base.
Our Services business continues to gain sales traction with new work in secure communications and datalinks to connect international security forces. This has broadened our customer relationships and further enhanced our reputation. Significant contract momentum has been supported by the acquisition of Polaris Consulting at the end of 2017, and the subsequent integration of their business into our portfolio of services.
A commercial and technical partnership was signed with Micopore Inc., an American developer of revolutionary ExtendAir® carbon dioxide adsorbent systems, used in rebreathing and life support applications. This represents an important first step in developing transatlantic partnerships for the Group. In keeping with our stated strategy to expand our global sales footprint, our CEO and senior leadership team made visits to Australia, south-east Asia and the United States during the period.
We have also strengthened the sub-board management layer, including the appointment of James Norwood as Corporate Development Director in May. This adds further tier-one contractor experience and has already opened several large-scale opportunities that we were previously unable to access.
Our acquisition pipeline continues to be active with management reviewing opportunities whilst maintaining a prudent approach on suitability and valuation.