REG - CT Automotive Group - Half-year Report
Thu 07:00
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RNS Number : 7218A CT Automotive Group PLC 25 September 2025
25 September 2025
CT Automotive Group PLC
("CT Automotive" or the "Group")
"Solid performance with strong margin progression, and multiple new business
wins"
CT Automotive, a leading designer, developer and supplier of interior
components to the global automotive industry, today announces its results for
the half year ended 30 June 2025 ("H1 25").
Simon Phillips, Chief Executive Officer of CT Automotive, commented:
"This has been a productive first six months with eight new contracts secured,
worth ~$37m annually, four of which were awarded to our Mexico facility, with
customers attracted by the cost-efficient production and being a low tariff
jurisdiction for the US market. While the market has been challenging with
tariffs adding further complexity, we have remained flexible and responsive to
changing customer needs, successfully focusing on new ways to reduce supply
chain costs reflected in the new business wins. Our investment in AI,
automation and digitisation continue to be key to driving the gross profit
margin which has again improved significantly up by 290 basis points. The
Board has taken the strategic decision to continue the investment in our
Mexico facility, driven by demand in this market.
The Company remains on track to hit FY 25 market expectations for
profitability 1 . Market conditions, including uncertainty around tariffs,
resulted in an initial level of customer caution and, combined with recent
customer adjustments to program launch timing, revenues are now expected to be
slightly softer. Crucially, latest customer information indicates no change to
longer term production volumes to FY 26 and beyond."
Listen to CEO Simon Phillips provide further insight on the Interim Results
Financial highlights(+)
H1 25 H1 24
$m $m % Change
Revenue 54.1 60.5 (11%)
Gross profit 16.5 17.4 (5%)
Gross profit margin 30.5% 28.7% +180bps
Adj. EBITDA* 8.4 7.4 14%
Adj. EBITDA margin 15.6% 12.2%
Adj. profit before taxation* 4.2 4.1 2%
Adj. profit before taxation* margin 7.8% 6.7%
Profit before taxation 3.4 3.8 (11%)
Earnings per share 4.6c 4.7c (2%)
Net debt** 12.1 5.8 (109%)
* Adjusted for non-recurring items as explained in Notes 4 and 15 of the
consolidated condensed financial statements
1 Note: Immediately prior to this announcement, the Company believes that
market expectations for the year ended 31 December 2025 were for revenues of
$122.0m and adjusted Profit Before Tax of $10.5m respectively.
** Net debt excludes IFRS 16 lease liabilities
(+)Note: the above figures are derived from continuing operations excluding UK
discontinued operations
HY25 financial highlights
· CT Automotive delivered a resilient financial performance in
the first half of 2025 in the face of macroeconomic headwinds, underpinned
by margin expansion and disciplined investment to support future growth.
· Total revenues for H1 25 were $54.1m (H1 24: $60.5m),
reflecting timing adjustments to customer program launches and short-term
inventory reductions across the sector. Importantly, there has been no change
to long-term production volumes, and production is expected to accelerate as
delayed programs begin ramping up in Q1 2026.
· Eight new program awards in H1 25 worth $37m annually, with four
customers relocating production to CT's Mexico facility from competitors for
USMCA benefits, reinforcing CT's cost-efficient, high-quality positioning.
· Strategic investment in Mexico facility ($3.4m), adding 15
injection moulding machines and an automated paint line, ensuring capacity for
2026 growth and in line with the Group's strategy to drive further margin
improvement.
· Gross profit margin strengthened to 30.5% (FY 24: 27.6%), a 290
bps increase over six months driven by ongoing efficiency programmes, AI-led
automation, and digitisation initiatives. This improvement underscores the
Group's ability to protect and grow profitability, even in a volatile
market, through accretive deployment of capex.
· Adjusted profit before tax was $4.2m (H1 24: $4.1m), a
level fully consistent with the strategic investments made to expand the
Mexican facility and global sales team. These investments are designed
to capture the significant growth opportunity in 2026, ensuring that CT
Automotive is positioned to scale quickly and efficiently as volumes ramp up.
· Net debt increased temporarily to $12.1m at period end (H1 24:
$5.8m), primarily due to a customer credit extension. Following receipt of the
delayed payment, net debt normalised to $7.4m in July. Reflecting the Board's
strategic decision to increase capex investment in Mexico in H2, CT now
expects FY 25 to close within the $9-10m range. Looking ahead, the business is
increasingly cash generative and net debt is expected to reduce significantly
by the end of 2026.
Current trading and outlook
· Solid H1 25 performance with strong margin growth despite
industry-wide tariff-related volatility, placing the Company on track to hit
FY 25 market expectations for profitability.
· Revenues for FY 25 are now expected to be slightly softer
reflecting timing adjustments only-no change to long-term production volumes,
with demand ramping up in Q1 26.
· Significant expansion of the global sales team, now covering
every major automotive region, driving RFQ book to all-time highs.
· Overall, the Group's margin progression and a record RFQ
pipeline provide a solid platform for a stronger second half with the
contractual pipeline giving the Board confidence over current FY 26 market
expectations and beyond.
Investor Presentation
The Company will hold an investor presentation to discuss the interim
results, followed by a Q&A session, on Monday 29 September 2025 at
10.00am. To attend, please register with Investor Meet Company via this
link:
https://www.investormeetcompany.com/ct-automotive-group-plc/register-investor
(https://www.investormeetcompany.com/ct-automotive-group-plc/register-investor)
Enquiries:
CT Automotive Via Novella
Simon Phillips, Chief Executive Officer
Salman Mohammed, Chief Financial Officer
Singer Capital Markets Advisory LLP (Nominated Adviser and Broker) Tel: +44 (0)20 7496 3000
Alex Bond, James Todd, Samed Ethemi
Novella Communications (Financial Public Relations) Tel : +44 (0)20 3151 7008
Tim Robertson, Safia Colebrook ctautomotive@novella-comms.com (mailto:ctautomotive@novella-comms.com)
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 China, Mexico and Türkiye.
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
portfolio of OEM customers, both directly and via Tier One suppliers including
Forvia and Marelli. End customers include volume manufacturers, such as
Nissan, Ford, GM and Volkswagen Audi Group, and premium luxury car brands such
as Bentley and Lamborghini. In addition, the Group supplies our customer
base with a range of products for PHEV and BEV platforms and supplies electric
car manufacturers, including Rivian and a US based major EV OEM.
The Group currently supplies component part types to over 55 different models
for 22 OEMs. Since its formation, the Group has been one of the very few new
entrants to the market, which is characterised by high barriers to entry.
Use of alternative performance measures
The commentary uses alternative performance measures, which have been adjusted
for certain non-recurring items. An explanation of the items identified as
non-recurring and that have been adjusted can be found in Notes 4 and 15 of
the consolidated condensed interim financial statements. Non-recurring items
are items which due to their one-off, non-trading and non-underlying nature,
have been separately classified by the Directors in order to draw them to the
attention of the reader and allow for a greater understanding of the operating
performance of the Group.
CEO Statement
Overview
I am pleased to report a solid and strategically important performance for
the first six months of 2025. Despite a backdrop of tariff-related market
volatility, CT Automotive has delivered another period of margin growth and
new business momentum, demonstrating the resilience and adaptability of our
model.
The introduction of tariffs has acted as a catalyst for customer engagement,
with OEMs and Tier-1 suppliers increasingly seeking our expertise to reduce
supply chain costs and mitigate risk. This shift is reflected in eight new
program awards secured during the period, worth an estimated $37m annually,
with four programs won from competitors relocating production to our Mexico
facility, to take advantage of USMCA benefits. These contracts further
validate our ability to provide cost-efficient, high-quality solutions on a
global scale.
As a result of delays to program launch timing due to occur in the second half
of 2025, full year revenues will now be slightly softer than expected, but we
remain confident of achieving market expectations for profitability at
materially improved margins.
Trading
As previously signalled, revenues of $54.1m reflect customer program launch
timing adjustments and inventory run-downs. Crucially, there has been no
change to long-term production volumes, and the gross margin improved sharply
again to 30.5%, underlining the benefits of our AI-driven automation,
digitisation, and cost-control initiatives.
During H1 25 we strategically increased capital and operational investment,
particularly in Mexico, to ensure we are ready for the step-change in volumes
forecast for 2026. This proactive approach positions us to capitalise on
accelerating demand rather than simply react to it.
We also expect a stronger second half, driven by tooling revenues and
engineering development milestones.
New business development
Momentum in new business is exceptional. Building on last year's expansion,
our significant investment in a truly global sales team-now covering every
major automotive region-has driven our RFQ book to all-time highs. The team is
currently tendering for a significant number of programs spanning the
Americas, Asia, and Europe, giving us a robust and diversified pipeline
further enhancing revenue growth from FY 27 onwards.
These awards and tenders reinforce CT Automotive's position as a trusted
global partner, strengthening our forward revenue visibility and broadening
our customer base across both traditional OEMs and emerging EV manufacturers.
Manufacturing base
Our Mexico plant continues to expand rapidly, with $3.4m being invested in
2025 to increase capacity-adding 15 injection moulding machines and a new
automated paint line. This investment ensures we can meet rising near-shoring
demand and deliver USMCA-certified production efficiently.
China remains the innovation hub for CT Automotive, with successful pilots
of digitisation, robotics, and AI-based quality control now rolling out
globally. Türkiye continues to operate at full capacity, supported by our
cost escalation system and careful economic management. Across all production
centres, automation and efficiency gains are strengthening margins and
ensuring consistent delivery for customers.
Our Sustainability Strategy
Sustainability remains at the centre of our strategy of achieving growth
responsibly, whilst taking careful consideration of our wider impact and
global footprint. In 2025 we have strengthened our efforts to lower our
carbon emissions through partnerships and certified offsetting-EAC programmes,
while preparing for longer-term decarbonisation.
As we continue to adopt new technologies and innovation, we remain dedicated
to advancing our low-impact operations, innovating sustainably, and partnering
with our customers to meet their ESG objectives.
Community
Through our Corporate Social Responsibility (CSR) programmes, we have invested
in initiatives that promote healthcare and welfare, with the aim of
delivering lasting positive impact. These efforts not only deepen our
engagement with local stakeholders but also demonstrate our commitment to
ensuring that sustainable growth creates shared value for the communities in
which we operate.
Our People
Our people are our most valuable asset at CT Automotive. We invest in our
employees from day one through tailored, professional growth opportunities,
with training forming the core of our learning and development strategy. I
would like to thank all of our employees, across the globe, for their
continued efforts in building an inclusive, collaborative workforce.
Our AI-led Approach
The adoption of new technologies is increasingly becoming a core pillar of our
business model, which we believe will allow us to leverage a first-mover
advantage against competitors, drive margin improvement and attract new
customers. In our China facilities we have successfully piloted the use of
digitisation and AI in customer orders all the way through to final assembly,
using advanced robotics, full ERP integration, automated assembly lines and
AI-based quality control. Going forward, this is being rolled out across our
other facilities. Our disciplined approach ensures every automation project
delivers an ROI within one year as a first filter, with subsequent initiatives
pursued on a two-year ROI target, a return that remains exceptionally fast by
industry standards.
Financial Review
Revenue and margins
During the first half of 2025, the Group generated total revenue of $54.1m,
compared to $60.5m in the same period of the prior year. The $6.4m reduction
in revenue against H1 24 was mainly driven by market volatility, tariffs, and
customer led delays in program launches, resulting in $50.1m of production
revenues (H1 24: $56.0m). Although tooling revenue was slightly down from
$4.5m in H1 24 to $4.0m in H1 25, due to revenue recognition timing
milestones, management are confident of stronger tooling revenues in H2 25.
Gross profit for the period was down to $16.5m (H1 24: $17.4m) due to lower
revenue, but gross margin increased to 30.5% from 27.6% at FY 24. This 290
basis points (bps) increase reflects the benefits of the efficiency
initiatives and cost controls implemented over previous periods. Gross margin
improvements in tooling reflect the decisions to invest in capital equipment
to reduce reliance on 3(rd) party vendors.
Non-recurring items
During the period, the Group incurred non-recurring expenses totalling
approximately $0.9m, comprising:
· $0.3m (H1 24: $0.3m) relating to hyperinflation adjustments
in Türkiye,
· $0.2m associated with a one-off tooling amortization,
· $0.4m of severance costs in Türkiye following union pay
increases agreed upon earlier in H1 25.
These items are considered non-recurring and are separately distinguished from
ongoing operational costs.
EBITDA and Operating results
Distribution expenses increased marginally to $1.4m (H1 24: $1.1m), primarily
due to higher duty costs and increased shipping expenses stemming from recent
US tariff changes. Administrative expenses decreased to $10.4m (H1 24:
$11.8m), driven by cost control measures implemented in FY 24.
The combined result of EBITDA and operating expenses was as follows:
· Underlying EBITDA: $8.4m (H1 24: $7.4m).
· Underlying Profit before tax: $4.2m, (H1 24: $4.1m).
This reflects the core profitability of the Group during the period, supported
by operational efficiencies and cost management.
Profit from continuing operations and EPS
Reported profit after tax from continuing operations was $3.4m (H1 24: $3.7m).
Basic earnings per share from continuing operations were estimated at
approximately 4.6 cents, compared to 4.7 cents in H1 24.
Balance sheet review
The Group's total assets increased from $74.7m at FY 24 to $84.6m as at 30
June 2025.
Total liabilities increased slightly to $54.8.m, compared to $48.5m at FY 24
end, primarily driven by higher loan balances as detailed below and deferred
revenue related to H2 25 and H1 26 tooling programs.
Total non-current assets grew by $0.8m to $18.4m, due to an increase
of $1.1m in property, plant, and equipment (PPE) as we expand our Mexican
facility for future growth.
Inventories rose by $1.1m to $28.8m, reflecting raw material builds for
upcoming projects.
Trade receivables increased by $9.6m to $35.3m, primarily due to a delayed
payment from one customer, which was received in July and an increase in
tooling prepayments for future programs, which corresponds to an increase in
deferred revenue.
Net debt increased from $6.2m at year end to $12.1m. The key contributor was a
delay in payment from a key customer which had a net impact of approximately
$4m. Net debt normalised in July 2025 at $7.4m following receipt of the
one-off delayed payment.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Note Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Continuing Operations:
Revenue 2,3 54,122 60,498 119,748
Cost of sales (37,609) (43,132) (86,644)
Gross profit 16,513 17,366 33,104
Distribution expenses (1,424) (1,119) (2,206)
Other operating income 118 509 717
Administrative expenses (10,373) (11,792) (20,041)
EBITDA (before non-recurring items) 8,418 7,382 15,024
Depreciation (2,706) (1,949) (5,315)
Amortisation (11) (168) (153)
Non-recurring items 4 (867) (301) -
Operating Profit 4,834 4,964 9,556
Finance income 13 27 49
Finance expenses (1,466) (1,242) (2,130)
Profit before tax 3,381 3,749 7,475
Taxation (charge)/credit - (267) 166
Profit for the period from continuing operations 3,381 3,482 7,641
Discontinued operations:
Profit/(Loss) for the period from discontinued - 192 808
operations
Profit for the period attributable to equity 3,381 3,674 8,449
shareholders
Profit for the period attributable to:
Owners of the Company 3,379 3,665 8,650
Non-Controlling Interests 2 9 (201)
Other comprehensive income/(loss)
Items that are or may be reclassified subsequently to profit or loss:
Foreign currency translation differences - foreign operations 132 (465) 715
Other comprehensive loss for the period, net of income tax 132 (465) 715
Total comprehensive income/(loss) for the 3,513 3,209 9,164
period
From continuing operations:
Basic earnings per share 5 4.59 c 4.7 c 10.4 c
Diluted earnings per share 5 4.44 c 4.7 c 10.0 c
From continuing and discontinued operations:
Basic earnings per share 5 4.59 c 5.0 c 11.5 c
Diluted earnings per share 5 4.44 c 5.0 c 11.1 c
Consolidated Balance Sheet
Note Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Non-current assets
Goodwill 1,260 1,259 1,259
Intangible assets 219 286 207
Property, plant and equipment 6 8,703 7,335 7,644
Right of use assets 6,554 7,575 6,750
Deferred tax assets 1,622 1,571 1,627
18,358 18,026 17,487
Current assets
Inventories 7 28,768 25,747 27,676
Tax receivable 765 220 223
Trade and other receivables 8 35,346 29,976 25,667
Cash and cash equivalents 13 1,378 4,382 3,628
66,257 60,325 57,194
Total Assets 84,615 78,351 74,681
Current liabilities
Trade and other payables 10 (33,464) (36,676) (30,203)
Other interest-bearing loans and borrowings 9 (13,525) (10,236) (9,860)
Derivative financial liabilities (10) - (49)
Tax payables (784) (1,232) (1,060)
Lease liabilities (2,541) (3,115) (2,109)
(50,324) (51,259) (43,281)
Non-current liabilities
Lease liabilities (4,553) (5,444) (5,222)
(4,554) (5,444) (5,222)
Total Liabilities (54,877) (56,703) (48,503)
Net assets 29,738 21,648 26,178
Equity attributable to equity holders of the parent
Share capital 14 484 484 484
Share premium 63,696 63,696 63,696
LTIP Reserve 98 21 51
Translation reserve (550) (407) (682)
Merger reserve (35,812) (35,812) (35,812)
Accumulated Surplus / (Deficit) 1,959 (6,405) (1,420)
Non-controlling interest (137) 71 (139)
Total equity 29,738 21,648 26,178
Consolidated Statement of Changes in Equity
Share capital Share premium LTIP reserve Translation reserve Merger reserve Accumulated Deficit Non-Controlling Interest Total equity
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
At 1 January 2024 484 63,696 4 (1,397) (35,812) (10,070) 62 16,967
Total comprehensive income for the year:
Profit for the year - - - - - 8,650 (201) 8,449
Recognition of LTIP reserve - - 47 - - - - 47
Foreign currency translation - - - 715 - - - 715
- - 47 715 - 8,650 (201) 9211
At 31 December 2024 484 63,696 51 (682) (35,812) (1,420) (139) 26,178
As at 1 January 2025
Total Comprehensive income for the period 484 63,696 51 (682) (35,812) (1,420) (139) 26,178
Profit for the period - - - - - 3,379 2 3,381
Recognition of LTIP reserve - - 47 132 - - - 179
Total comprehensive income for the period - - 47 132 - 3,379 2 3,560
Balance at 30 June 2025 484 63,696 98 (550) (35,812) 1,959 (137) 29,738
Consolidated statement of cash flows Unaudited 6 months Unaudited 6 months Year to 31
to 30 June 2025 to 30 June 2024 December 2024
Cash flows from operating activities $'000 $'000 $'000
Profit for the period from continuing operations after tax 3,381 3,482 7,641
Profit/(loss) from discontinued operations - 192 808
Profit for the period after tax 3,381 3,674 8,449
Adjustments for:
Depreciation 2,706 1,949 5,315
Amortisation 11 168 153
Share Based Charge 47 17 47
Loss on stock write off net of claims received 229 - -
Hyperinflation impact on operating profit 304 301 (210)
Net fair value losses recognised in Profit or Loss 3 (1) (3)
Financial expense 1,466 1,242 2,130
Finance income (13) - (49)
Gain on Termination of Lease - (192) -
Taxation charge/(credit) - 267 (166)
(Profit) / Loss on disposal of Property, Plant and Equipment (244) 68 402
Operating Profit before working capital changes 7,890 7,493 16,068
(Increase) / Decrease in trade and other receivables (10,125) 2,217 5,825
(Increase) in inventories (1,301) (662) (1,157)
Increase / (Decrease) in trade and other payables 2,598 (5,758) (13,155)
Tax (paid) (119) (237) (677)
Net cash generated from operating activities (1,057) 3,053 6,904
Cash flows from investing activities
Net Purchase of intangible assets (50) (91) (62)
Net Purchase of property, plant and equipment (1,488) (1,521) (3,138)
Sale of tangible assets 3 - -
Sale of intangible assets - - 171
Finance income 13 - 49
Net cash used in investing activities (1,523) (1,612) (2,980)
Cash flows from financing activities
Principal repayment of lease liabilities (1,419) (1,905) (4,059)
Repayment of lease liabilities - Interest (435) - (1,062)
Interest paid on borrowings (1,031) (1,215) (1,068)
Net Drawdown / (Repayment) of FGI trade loans 2,861 (3,125) (9,000)
Drawdown of loan received by Simon 300 - -
Drawdown of borrowings - - 9,567
Repayment of invoice finance - (158) (4,018)
Net cash used in financing activities 276 (6,403) (9,640)
Net decrease in cash and cash equivalents (2,304) (4,962) (5,716)
Cash and cash equivalents at beginning of period 3,628 9,440 9,440
Effect of exchange rate fluctuations on cash held 54 (96) (96)
Cash and cash equivalents at end of period (see Note 13) 1,378 4,382 3,628
Notes forming part of the consolidated unaudited financial statements
1. Accounting Policies Introduction
The consolidated condensed interim financial statements have been prepared in
accordance International Financial Reporting Standards currently in force and
in conformity with the requirements of the Companies Act 2006.
These unaudited consolidated condensed interim financial statements
(hereinafter "the financial statements") have been prepared on the basis of
the same accounting policies as per the audited financial statements for the
year ended 31 December 2024. The financial statements, which have been
prepared in accordance with International Accounting Standard 34 (IAS 34), are
unaudited and do not constitute statutory accounts within the meaning of
section 434 of the Companies Act 2006. Statutory accounts for the year ended
31 December 2024 prepared in accordance with IFRS, have been filed with
Companies House. The Auditors' Report on these accounts was unqualified, did
not include any matters to which the Auditors drew attention by way of
emphasis without qualifying their report and did not contain any statements
under section 498 of the Companies Act 2006.
The consolidated condensed interim financial statements are for the six months
to 30 June 2025. The interim consolidated financial information does not
include all the information and disclosures required in the annual financial
statements and should be read in conjunction with the Group's annual financial
statements for the year ended 31 December 2024 which were prepared in
accordance with IFRS's and in conformity with the requirements of the
Companies Act 2006.
Measurement convention
The financial statements are prepared on the historical cost basis except for
the financial statements of the foreign operations in Türkiye which are
subject to hyperinflationary accounting, and derivative financial instruments
which are stated at fair value.
Basis of Consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an
entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power over the entity. In assessing control, the Group takes into
consideration potential voting rights that are currently exercisable. The
acquisition date is the date on which control is transferred to the acquirer.
The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date that
control ceases.
Non-controlling Interest
Non-controlling interest represents the equity in subsidiaries that is not
attributable to all shareholders of the Group.
Change in subsidiary ownership and loss of control
Changes in the Group's interest in a subsidiary that do not result in a loss
of control are accounted for as equity transactions.
Where the Group loses control of a subsidiary, the assets and liabilities are
derecognised along with any related non-controlling interests and other
components of equity. Any resulting gain or loss is recognised in profit or
loss. Any interest retained in the former subsidiary is measured at fair value
when control is lost.
Transactions eliminated on consolidation
Intra-Group balances and transactions, and any unrealised income and expenses
arising from intra-Group transactions, are eliminated. Unrealised gains
arising from transactions with equity-accounted investees are eliminated
against the investment to the extent of the Group's interest in the investee.
Unrealised losses are eliminated in the same way as unrealised gains.
Discontinued operations
When the Group has sold or discontinued a component that represents a separate
major line of business or geographical area of operations during the year, or
has classified the component as held for sale, its results are presented
separately, net of any profit or loss on disposal, in the statement of profit
or loss and other comprehensive income, with the comparative amounts restated.
Revenue
Revenue is measured at the fair value of the consideration received or
receivable. Provided it is probable that the economic benefits will flow to
the Group and the revenue and costs, if applicable, can be measured reliably,
revenue is recognised in profit or loss as follows:
Serial production revenue is recognised at a point in time when control of the
goods has transferred to the customer. This is generally when the goods are
delivered to the customer or when a customer picks up from an agreed location.
There is limited judgement needed in identifying the point control passes. At
that point the Group no longer has physical possession, usually will have a
present right to payment and retain none of the significant risks and rewards
of the goods in question.
Tooling revenue and the provision of associated services is recognised at a
point in time when the performance obligations in the contract are satisfied
and control is passed to the customer, which is based on the date of issue of
the parts submission warrant (PSW) or a similar approval from customers, or
other evidence of the commencement of serial production. Monies received from
customers in advance of completing the performance obligations are recognised
as contract liabilities as at the balance sheet date and released to revenue
when the related performance obligations are satisfied at a point in time.
There is an element of judgement needed in identifying the revenue recognition
point under IFRS 15, however as the Group does generally not have the right to
consideration prior to customer's acceptance of the tooling the control is
considered to pass at a point in time, not over time.
Discounts on the serial production contracts are considered as one off and
agreed with the customers as part of the negotiation and as per the terms of
the contract, they are either paid in advance or otherwise. Discounts paid in
advance are recognised as a prepayment and recognised as a debit to revenue in
the period in which the related revenue is recognised. All other discounts are
recognised as a debit to revenue based on the period in which the related
revenues are recognised.
Revenue excludes value added tax or other sales taxes and is after deduction
of any trade discounts.
Expenses
Distribution expenses
Distribution expenses incurred directly in respect of bringing products to
market. These will include marketing and commissioning costs to distributors
and are recorded at the point the expense is incurred.
Admin expenses
Admin expenses represent expenses incurred as fixed costs of business
operations of the Group, including rent, utilities, payroll. These expenses
are incurred at the point they are incurred.
Finance income and expenses
Finance expenses comprise interest payable on borrowings and interest on lease
liabilities which are recognised in profit or loss using the effective
interest method. Interest income is recognised in profit or loss as it
accrues, using the effective interest method. Finance expense also includes
the IAS29, Hyperinflationary impact on the profit and loss of the Turkish
subsidiary.
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation
and accumulated impairment losses.
Where parts of an item of property, plant and equipment have different useful
lives, they are accounted for as separate items of property, plant and
equipment.
Depreciation is charged to the profit and loss account on a straight-line
basis over the estimated useful lives of each part of an item of property,
plant and equipment. The estimated useful lives are as follows:
Assets under construction -
not depreciated
Plant and
equipment -
2-15 years straight line Furniture, fixtures and
equipment - 2-5 years
straight line Motor
vehicles
- 2-5 years straight line
Depreciation methods, useful lives and residual values are reviewed at each
balance sheet date.
Intangible assets
Intangible assets (including software)
Expenditure on internally generated goodwill and brands is recognised in
profit or loss as an expense as incurred.
Intangible assets that are acquired by the Group are stated at cost less
accumulated amortisation and less accumulated impairment losses.
Amortisation
Amortisation is charged to profit or loss on a straight-line basis over the
estimated useful lives of intangible assets. Intangible assets are amortised
from the date they are available for use. The estimated useful lives are as
follows: Software - 1-5 years
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is
based on the first-in first-out principle and includes expenditure incurred in
acquiring the inventories, production or conversion costs and other costs in
bringing them to their existing location and condition. In the case of
manufactured inventories and work in progress, cost includes an appropriate
share of overheads based on normal operating capacity.
Net realisable value is the value that would arise on sale of stock in the
normal course of business, minus a reasonable estimation of selling costs.
Foreign currency
Transactions in foreign currencies are translated to the respective functional
currencies of Group entities at the foreign exchange rate ruling at the date
of the transaction. Foreign currency monetary assets and liabilities are
translated at the rates ruling at the reporting date. Exchange differences
arising on the retranslation of unsettled monetary assets and liabilities are
recognised immediately in profit or loss. Exchange differences arising on the
retranslation of the foreign operation are recognised in other comprehensive
income and accumulated in the foreign exchange reserve.
The assets and liabilities of foreign operations, including goodwill and fair
value adjustments arising on consolidation, are translated into the Group's
reporting currency US Dollars at foreign exchange rates ruling at the balance
sheet date. The revenues and expenses of foreign operations are translated at
an average rate for the year.
Exchange differences arising from this translation of foreign operations are
reported as an item of other comprehensive income and accumulated in the
translation reserve. When a foreign operation is disposed of, such that
control is lost, the entire accumulated amount in the foreign currency
translation reserve, is reclassified to profit or loss as part of the gain or
loss on disposal. When the Group disposes of only part of its interest in a
subsidiary that includes a foreign operation while still retaining control,
the relevant proportion of the accumulated amount is reattributed to non-
controlling interests. When the Group disposes of only part of its investment
in an associate that includes a foreign operation while still retaining
significant influence, the relevant proportion of the cumulative amount is
reclassified to profit or loss.
Classification of financial instruments issued by the Group
Financial instruments issued by the Group are treated as equity only to the
extent that they meet the following two conditions:
(a) they include no contractual obligations upon the Company (or Group as
the case may be) to deliver cash or other financial assets or to exchange
financial assets or financial liabilities with another party under conditions
that are potentially unfavourable to the Group; and
(b) where the instrument will or may be settled in the company's own equity
instruments, it is either a non-derivative that includes no obligation to
deliver a variable number of the company's own equity instruments or is a
derivative that will be settled by the company's exchanging a fixed amount of
cash or other financial assets for a fixed number of its own equity
instruments.
To the extent that this definition is not met, the proceeds of any issues are
classified as a financial liability.
Non-derivative financial instruments
Financial assets and liabilities are recognised when the Group becomes party
to the contractual provisions of the instrument.
Non-derivative financial instruments comprise trade and other receivables,
cash and cash equivalents, loans and borrowings, and trade and other payables.
Trade and other receivables
Trade and other receivables are initially measured at their transaction price.
Trade receivables and other receivables are held to collect the contractual
cash flows which are solely payments of principal and interest. Therefore,
these receivables are subsequently measured at amortised cost using the
effective interest rate method.
Trade and other payables
Trade and other payables are recognised initially at fair value. Subsequent to
initial recognition they are measured at amortised cost using the effective
interest method.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank
overdrafts that are repayable on demand and form an integral part of the
Group's cash management are included as a component of cash and cash
equivalents for the purpose only of the cash flow statement.
Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at fair value less
attributable transaction costs. Subsequent to initial recognition, interest-
bearing borrowings are stated at amortised cost using the effective interest
method. See Note 9 for full details of classes of interest-bearing borrowings.
Effective interest rate
The 'effective interest' is calculated using the rate that exactly discounts
estimated future cash payments or receipts (considering all contractual terms)
through the expected life of the financial asset or financial liability to its
carrying amount before any loss allowance.
Share based payments
Equity-settled share-based payments to employees and others providing similar
services are measured at the fair value of the equity instruments at the grant
date. The fair value excludes the effect of non-market-based vesting
conditions. The fair value determined at the grant date of the equity settled
share-based payments is expensed on a straight-line basis over the vesting
period, based on the Group's estimate of the number of equity instruments that
will eventually vest. At each reporting date, the Group revises its estimate
of the number of equity instruments expected to vest as a result of the effect
of non-market-based vesting conditions. The impact of the revision of the
original estimates, if any, is recognised in profit or loss such that the
cumulative expense reflects the revised estimate, with a corresponding
adjustment to reserves
Hyperinflation
Effective from 1 January 2022, the Group has applied IAS 29, Financial
Reporting in Hyperinflationary Economies, for its subsidiary in Türkiye,
whose functional currency has experienced a cumulative inflation rate of more
than 100% over the past three years. Assets, liabilities, the financial
position and results of foreign operations in hyperinflationary economies are
translated to US Dollar at the exchange rate prevailing at the reporting date.
The exchange differences are recognised directly in other comprehensive income
and accumulated in the translation reserve in equity. Such translation
differences are reclassified to profit or loss only on disposal or partial
disposal of the foreign operation. Prior to translating the financial
statements of foreign operations, the non-monetary assets and liabilities and
comprehensive income (both previously stated at historic cost) are restated to
account for changes in the general purchasing power of the local currencies
based on the consumer price index published by the Turkish Statistical
Institute. The consumer price index for the year ended 31 December 2024 and 31
December 2023 increased by 44.37% and 64.77% respectively. The consumer price
index for the six months ended 30 June 2025 increased by 16.67%. Monetary
items are not restated because they are already expressed in terms of the
monetary unit current at the end of the reporting period.
2 Revenue
Disaggregation of revenue Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
$'000 $'000 $'000
An analysis of turnover by type is given below:
Production revenue 50,139 55,966 107,781
Tooling revenue 3,983 4,532 11,967
Total revenues 54,122 60,498 119,748
All revenue is derived from goods transferred at a point in time.
An analysis of turnover by geographical market is given within Note 3.
3 Segment information
Operating segments are reported in a manner consistent with internal reporting
provided to the Chief Operating Decision Maker (CODM). The CODM has been
identified as the management team including the Chief Executive Officer and
Chief Financial Officer. The segmental analysis is based on the information
that the management team uses internally for the purpose of evaluating the
performance of operating segments and determining resource allocation between
segments.
The Group has 3 strategic divisions which are its reportable segments. The
Group has the below main divisions:
1) Tooling - Design, development and sale of tooling for the automotive
industry.
2) Production - Manufacturing and distributing serial production kinematic
interior parts for the automotive industry.
3) Head office - Manages group financing and capital management
The Group evaluates segmental performance based on revenue and profit or loss
from operations calculated in accordance with IFRS.
Unaudited 6 months ended 30 June 2025
Revenue Tooling Production Head office Total
$'000 $'000 $'000 $'000
Total revenue from customers 3,983 50,139 - 54,122
Depreciation and amortisation - (2,717) - (2,717)
Finance expense - (1,466) - (1,466)
Group and segment Profit/(Loss) before tax 1,075 5,411 (3,105) 3,381
and discontinued operations
Unaudited 6 months ended 30 June 2024
Revenue Tooling Production Head office Total
$'000 $'000 $'000 $'000
Total revenue from customers 4,532 55,966 - 60,498
Depreciation and amortisation - (2,117) - (2,117)
Finance expense - (1,242) - (1,242)
Group and segment Profit/(Loss) before tax 1,328 6,343 (4,018) 3,653
and discontinued operations
Year ended 31 December 2024
Revenue Tooling Production Head office Total
$'000 $'000 $'000 $'000
Total revenue from customers 11,967 107,781 - 119,748
Depreciation and amortisation - (5,468) - (5,468)
Finance expense - (2,084) (46) (2,130)
Group and segment Profit/(Loss) before tax 3,591 12,185 (8,301) 7,475
and discontinued operations
External revenue by location of customers Unaudited 6 months to 30 June 2025 Unaudited 6 months to 30 June 2024 Year to 31 December 2024
$'000 $'000 $'000
Europe 17,720 20,987 42,565
North America 14,481 14,427 31,977
Asia Pacific 9,928 13,088 15,652
United Kingdom 10,195 8,158 25,680
Rest of the World 1,798 3,838 3,874
54,122 60,498 119,748
4 Non-recurring items
Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Impact of hyperinflation 303 301 -
Severance pay 364 - -
Tooling one off amortization 200 - -
Total 867
301
-
Non-recurring items are items, which, due to their one-off, non-trading and
non-underlying nature, have been separately classified by the Directors in
order to draw them to the attention of the reader and allow for greater
understanding of the operating performance of the Group.
Effective from 1 January 2022, the Group has applied IAS 29, Financial
Reporting in Hyperinflationary Economies for its subsidiary in Türkiye. The
impact of applying this standard in the 6 months ended 30 June 2025 was a
charge of $ 303,000 and is considered as non-trading.
5 Earnings per share
Unaudited 6 months to 30 June 2025 Unaudited 6 months to 30 June 2024 Year to 31 December 2024
Number Number Number
Weighted average number of equity shares 73,597,548 73,597,548 73,597,548
$ $ $
Profit for the period from continuing operations 3,381,000 3,482,000 8,449,000
Cents Cents Cents
Basic Profit per share from continuing operations 4.59 4.7 11.5
Diluted Profit per share from continuing operations 4.44 4.7 11.1
Basic Profit/(Loss) per share from discontinued operations - 0.3 1.1
Diluted Profit/(Loss) per share from discontinued operations - 0.3 1.1
There are contingently issuable shares in existence (see Note 12) that can
result in diluted Earnings/(Loss) per share being different from basic
Earnings/(Loss) per share in 2025 and 2024.
6 Property, plant and equipment
Plant and equipment Fixtures and fittings Motor vehicles Total
$'000 $'000 $'000 $'000
Cost
Balance as at 1 January 2024 14,048 2,582 242 16,872
Hyperinflationary adjustment 290 127 - 417
Additions 2,342 760 36 3,138
Disposals (1,692) (275) (164) (2,131)
Effect of movements in foreign exchange (372) (147) (2) (521)
Balance as at 31 December 2024 (audited) and 14,616 3,047 112 17,775
as at 1 January 2025
Hyperinflationary adjustment (187) (86) - (273)
Additions 1,190 244 54 1,488
Disposals (243) (102) - (345)
Effect of movements in foreign exchange 92 (12) 6 86
Balance as at 30 June 2025 (unaudited) 15,468 3,091 172 18,731
Depreciation
Balance at 1 January 2024 (7,665) (1,901) (217) (9,783)
Hyperinflationary adjustment (273) (122) - (395)
Depreciation charge for the period (1,125) (246) (12) (1,383)
Disposals 1,315 142 139 1,596
Effect of movements in foreign exchange (121) (40) (5) (166)
Balance as at 31 December 2024 (audited) and (7,869) (2,167) (95) (10,131)
as at 1 January 2025
Hyperinflationary adjustment 227 106 - 333
Depreciation charge for the period (534) (152) (7) (693)
Disposals 301 37 - 338
Effect of movements in foreign exchange 107 20 (2) 125
Balance as at 30 June 2025 (unaudited) (7,768) (2,156) (104) (10,028)
Net book value
At 31 December 2024 (audited) 6,747 880 17 7,644
At 30 June 2025 (unaudited) 7,700 935 68 8,703
7 Inventories
Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Raw materials and consumables 7,617 7,161 7,890
Work in progress 9,855 7,792 7,394
Finished goods 11,296 10,794 12,392
28,768 25,747 27,676
8 Trade and other receivables
Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Trade receivables 19,038 14,463 12,583
VAT Receivable 3,078 2,071 2,395
Other receivables 1,912 1,768 1,838
24,028 18,302 16,816
Prepayments and accrued income 11,318 11,674 8,851
Total trade and other receivables 35,346 29,976 25,667
The carrying value of trade and other receivables classified at amortised cost
approximates fair value.
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses using a lifetime expected credit loss provision to trade receivables.
The expected loss rates are based on the Group's historical credit losses. Due
to the nature of the Group's customers historic losses are limited, however a
small credit loss provision of $200,000 has been made at the end of the period
(H1 2024: $ 200k). The key assumptions used in evaluating the credit loss
provision are the historical default ratio of these customers, any known
liquidity risks of the customers and based on the information available we
have assessed a range of possible outcome.
9 Loans and borrowings
Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Current liabilities
Current portion of secured bank loans 13,525 - 9,860
Trade loans - 5,880 -
Invoice finance - 4,356 -
13,525 10,236 9,860
10 Trade and other payables
Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Current
Trade payables 16,441 16,097 15,724
Non-trade payables and accrued expenses 4,385 6,428 6,318
Employee social security and taxes 1,797 2,490 1,694
Contract liabilities 7,345 5,328 3,670
Other payables 3,496 6,333 2,797
33,464 36,676 30,203
11 Related parties
Key Management personnel are those persons having authority and responsibility
for planning, directing and controlling the activities of the Group, including
the Directors of the Company.
The compensation of key management personnel (including the directors) is as
follows:
Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Key management remuneration including social security costs 464 597 1,355
Company contributions to money purchase pension plans 3 4 15
467 601 1,370
Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Directors' remuneration 382 469 910
Company contributions to money purchase pension plans 3 4 7
385 473 917
12 Share options
In the 6 months to 30 June 2025, CT Automotive Group PLC granted share options
to 5 individuals. Subject to vesting conditions, the executives and senior
managers will have the option to acquire a total of 924,938 Ordinary Shares at
an exercise price of £0.005 per share.
The Company awarded 888,880 LTIP Awards to executives which vest on the third
anniversary of grant subject to meeting earnings per share performance
criteria for the three year period ending on 30 June 2028. 25% of the LTIP
Awards will vest on meeting minimum performance criteria, with vesting
thereafter on a straight-line basis.
In addition, the Company awarded 36,049 nominal cost options under the same
plan to a senior manager. This award vests on the third anniversary of grant
subject to continued employment and no further performance conditions.
As at 30 June 2025 3,528,281 share options are outstanding.
13 Cash and cash equivalents
Cash and cash equivalents for purposes of the Unaudited 6 months to Unaudited 6 months to Year to 31 December
statement of cash flows comprises: 30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Cash and cash equivalents 1,378 4,382 3,628
1,378 4,382 3,628
14 Share Capital
Unaudited 6 months to Unaudited 6 months to Year to 31 December
30 June 2025 30 June 2024 2024
Allotted, called up and fully paid $'000 $'000 $'000
73,597,548 (2024: 73,597,548) ordinary shares of £0.005 each 484 484 484
Shares classified in Shareholder's fund 484 484 484
15 Alternative performance measures
The Directors consider Alternative Performance Measures (APMs) to better
allow the readers of the accounts to understand the underlying performance
of the Group. The Directors also monitor these APMs to assess financial
performance throughout the period.
The APMs used by the Directors include:
Adjusted EBITDA - calculated as EBITDA adjusted for non-recurring items*.
Adjusted EBITDA margin - calculated as adjusted EBITDA divided by revenue in
the period*. Adjusted profit before tax - calculated as profit before tax
adjusted for non-recurring items*.
Adjusted profit before tax margin - calculated as adjusted profit before tax
divided by revenue in the period*.
*Continuing operations only
EBITDA is calculated using Operating profit/(loss) before interest, taxes,
depreciation and amortisation.
Detail of each of the non-recurring items is disclosed in Note 4.
Adjusted EBITDA and Adjusted EBITDA Unaudited 6 months to Unaudited 6 months to Year to 31 December
margin 30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Adjusted EBITDA 8,418 7,382 16,268
Non - recurring items
- Impact of hyperinflation (303) (301) -
- Severance pay (364) - -
- Tooling one off amortization (200) - -
- Non cash translation foreign exchange losses - - (1,244)
EBITDA 7,551 7,081 15,024
Adjusted EBITDA margin 15.6% 12.2% 13.6%
EBITDA margin 13.0% 11.7% 12.5%
Adjusted Profit/(Loss) Before Tax and Unaudited 6 months to Unaudited 6 months to Year to 31 December
Adjusted Profit/(Loss) Before Tax margin 30 June 2025 30 June 2024 2024
$'000 $'000 $'000
Adjusted Profit Before Tax 4,248 4,050 8,719
Non- recurring items
- Impact of hyperinflation (303) (301) -
- Severance pay (364) - -
- Tooling one off amortization (200) - -
- Non cash translation foreign exchange losses - - (1,244)
Profit Before Tax 3,381 3,749 7,475
Adjusted Profit before tax margin % 7.8% 6.7% 7.3%
Profit before tax margin % 6.2% 6.2% 6.2%
16 Related party transactions
On 20 February 2025, the Company's wholly owned Chinese subsidiary Chinatool
Automotive Mould Systems Limited (CMSSZ) entered into an agreement with
Automotive Kinetic Systems Limited (AKSL), a company which is wholly owned by
Simon Phillips. Under the terms of the agreement AKSL made a loan to CMSSZ of
US $300,000 repayable within 12 months at an interest rate of 12.4% per annum.
The loan agreement is subject to the laws of the People's Republic of China.
The interest rate is standard for unsecured loans of this nature in this
region.
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