REG - CT Automotive Group - New Debt Facility

CT AutomotiveAnnouncement

11/10/2024 07:30

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RNS Number : 8553H  CT Automotive Group PLC  11 October 2024

11 October 2024

 

CT Automotive Group PLC

("CT Automotive" or the "Group")

 

Refinancing in Place to Underpin Expansion

 

CT Automotive, a leading designer, developer and supplier of interior
components to the global automotive industry, today is pleased to announce
that the Group has entered into a new debt agreement to refinance its existing
working capital facility, providing total funding of up to $20 million and
extending out to October 2027.

 

Commenting on the new facility, Simon Phillips, Chief Executive Officer, said,
"As we outlined in our interim results announcement and investor presentations
last month, we are very excited by the growth opportunities in front of us. A
number of new manufacturing programmes have started in 2024 and will ramp up
in 2025 and there are new programmes commencing next year that will ramp up in
2026. This gives us good visibility over the step changes coming in revenue
growth for the next two years. Moreover, contracts won in 2024 combined with a
pipeline of new RFQ's, that has rarely been stronger, give us confidence in
further increases beyond 2026.

 

The new facility is therefore key and will provide total funding of up to $20
million, enhancing our operational flexibility, supporting our planned revenue
growth, and in particular funding new programmes in Mexico where we see a
significant opportunity as US auto companies seek to bring manufacturing back
closer to home."

 

Details of the New Facility

 

·    The new working capital facility is with FGI Worldwide LLC (FGI),
providing a total facility of up to $20 million, committed for a period of
three years to October 2027

·    The new funding is structured as an asset-backed facility providing
the Company with additional flexibility to underpin global operations,
particularly the planned revenue growth in Mexico

·    The borrowing rate will remain substantially the same as with the
previous facility.  Customary asset based lending covenants will apply

·    As at 30 June 2024, the Company's net debt position (pre-IFRS 16) was
$5.8 million

 

 

Enquiries:

 CT Automotive                                                       Via Novella

 Simon Phillips, Chief Executive Officer

 Anna Brown, Chief Financial Officer

 Singer Capital Markets Advisory LLP (Nominated Adviser and Broker)  Tel: +44 (0)20 7496 3000

 Steve Pearce, Alex Bond, James Todd

 Novella Communications (Financial Public Relations)                 Tel : +44 (0)20 3151 7008

 Tim Robertson, Claire de Groot, Safia Colebrook                     ctautomotive@novella-comms.com (mailto:ctautomotive@novella-comms.com)

 

 

Notes to editors

 

CT Automotive

 

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, Türkiye and
Czechia.

 

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 all 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 57 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.

 

FGI

 

FGI (www.FGIWW.com (http://www.fgiww.com/) ) is a global leader in the
commercial finance industry, equipping small and medium enterprises with the
tools they need to enhance their business. Through its three principal
business units, FGI Finance, FGI Risk, and FGI Tech, FGI provides clients with
flexible and customized asset-based lending and credit insurance solutions
designed to support international and domestic growth. T.R.U.S.T.™, FGI
Tech's flagship software, is a powerful web-based credit insurance management
platform that automates the management and administration of credit insurance
policies in real-time.  Headquartered in New York City with offices across
the US, Canada, Mexico and the UK, FGI delivers unique and
relationship-focused solutions for its clients worldwide.

 

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