TP Group’s interim results have demonstrated the progress being made in the transition from an R&D to specialist engineering business, despite challenges in some of the group’s Energy & Process end-markets. While revenues are anticipated to be H2 weighted, margins are much improved and losses decreased through reduced non-commercial R&D, better product mix and enhanced efficiency. An order book up 57% to £19.2m, £10.9m of which is scheduled for delivery in H2, supports management’s outlook for EBITDA break-even by year end. At this stage we remain cautious and have held forecasts, with future contract wins providing upgrade catalysts.
