REG - CT Automotive Group - Inventory balance sheet adjustments

CT AutomotiveAnnouncement

12/05/2023 07:00

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RNS Number : 2362Z  CT Automotive Group PLC  12 May 2023

12 May 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").

CT AUTOMOTIVE GROUP PLC

("CT Automotive", the "Company" or the "Group")

 Inventory balance sheet adjustments

The Company has identified an error with regards to the calculation of the
year end inventory on consolidation, which relates to a number of years. This
is expected to result in the reduction of inventory, and therefore net assets,
by c.$8.4m at 31 December 2022, of which c.$8.3m existed at 31 December
2021.  Therefore, the impact of these balance sheet movements results in a
c.$0.1m increased loss in the year ended 31 December 2022, with the balance
being attributable to prior years.

The adjustment relates to the calculation of the provision for unrealised
profits resulting from intra Group sales and a corresponding absorption of
overheads within inventory.

The reduction to inventory is a non-cash adjustment. There is no adverse
impact to profitability in the current financial year ending 31 December 2023.
 

Trading in the current financial year has been encouraging, with strong
customer demand and more stable production schedules. As a result, the Board
remains confident of achieving market expectations for FY23.

For further information please contact:

 CT Automotive                                                           via MHP

 Simon Phillips, Executive Chairman

 Scott McKenzie, Chief Executive Officer

 Anna Brown, Chief Financial Officer

 MHP (Financial PR)                                                      Tel: +44 (0)20 3100 8540

 Tim Rowntree                                                            CTAutomotive@mhpgroup.com (mailto:CTAutomotive@mhpgroup.com)

 Charlie Barker

 Liberum (Nominated Adviser and Broker)                                  Tel: +44 (0)20 3100 2000

 Richard Lindley

 Benjamin Cryer

 

 

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 Mexico, Turkey and the
Czech Republic.

 

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 47 different models
for 19 OEMs. 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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