Trading Update

RNS Number : 5006B

CT Automotive Group PLC

14 February 2022

 

14 February 2022

CT AUTOMOTIVE GROUP PLC

("CT Automotive" or the "Group")

FY 2021 TRADING UPDATE

Positive trading - well positioned as global vehicle production recovers

CT Automotive, a leading designer, developer and supplier of interior components to the global automotive industry, today provides an update on its financial performance for the year ended 31 December 2021 ("FY 2021"), following admission to trading on AIM on 23 December 2021.

Trading Performance

The Group performed ahead of expectations for the year, with a positive trading performance in spite of the ongoing disruption to vehicle production caused by a global shortage of semiconductors.

Revenue for FY 2021 is expected to be approximately $133 million, up 21% compared to 2020 ($110 million). This was driven by the early completion of some Engineering, Design and Development programmes in Q4, as well an improved performance in serial production. Group gross margins were moderately lower than expected as a result of lower production volumes in China in Q4, with the completion of some de-stocking also impacting production efficiency.

As a result of the improved trading performance, underlying EBIT for the year is expected to be slightly ahead of expectations.

Outlook

The Board continues to expect global vehicle production volumes to recover during 2022 and automotive supply chain issues to resolve fully in 2023. Whilst the recovery remains in the early stages, the Board is encouraged by resilient order volumes in the year to date. The Group has long-term agreements with its customers and is well positioned, with c.95 per cent. of anticipated revenue in 2022 and c.90 per cent. of anticipated revenue in 2023 expected to come from projects which are currently in production, or on which the Group has been chosen as the nominated supplier.

The Group continues to invest in new facilities in Mexico and expanding existing capacity in the Czech Republic in order to enable local production, with the Mexico plant on track to commence production in mid-2022.

Notice of Results

The Group expects to announce its full year results for the year ended 31 December 2021 in May 2022.

Scott McKenzie, Chief Executive Officer of CT Automotive, commented:

"We are pleased with our trading performance in 2021, which was achieved against a challenging global automotive backdrop. We remain well placed to build on our strong track record of growth, client relationships and manufacturing excellence as global semiconductor shortages ease and vehicle production volumes recover."

For further information, please contact:

CT Automotive                                                                                                                 via. Engine MHP

Simon Phillips, Executive Chairman

Scott McKenzie, Chief Executive Officer

David Wilkinson, Chief Financial Officer

Engine MHP (Financial PR)                                                                                            Tel: [phone]

Tim Rowntree    [e-mail]

Charlie Barker

Charlie Protheroe

Liberum (Nominated Adviser and Broker)                          Tel: [phone]

Richard Lindley

Benjamin Cryer

Chris Whitaker

Notes to editors

CT Automotive is engaged in the design, development and manufacture of bespoke automotive interior finishes (for example dashboard panels and fascia finishes) and kinematic assemblies (for example air registers, arm rests, deployable cup holders and storage systems), as well as their associated tooling, for the world's leading automotive original equipment suppliers ("OEMs") and global Tier One manufacturers.

The Group is headquartered in the UK with a low-cost manufacturing footprint. Key production facilities are located in Shenzhen and Ganzhou, China complemented by additional manufacturing facilities in Turkey, the Czech Republic and the UK.

CT Automotive's operating model enables it to pursue a price leadership strategy, supplying high quality parts to customers at a lower overall landed cost than competitors. This has helped the Group build a high-quality roster of OEM end customers, both directly and via Tier One suppliers including Faurecia and Marelli. End customers include volume manufacturers, such as Nissan, and luxury car brands such as Bentley and Lamborghini. In addition, the Group supplies electric car manufacturers, including Lucid. It has also recently started working with e.Go Mobile, a German manufacturer which plans to launch a series of small electric vehicles for the budget end of the market.

The Group currently supplies component part types to over 45 different models for 17 OEMs and delivered over four million systems in the 12 months to 31 December 2020. Since its formation, the Group has been the only significant new entrant into the market, which is characterised by high barriers to entry.

 

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