REG - CT Automotive Group - Trading Statement

CT AutomotiveAnnouncement

29/07/2024 07:00

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RNS Number : 1020Y  CT Automotive Group PLC  29 July 2024

29 July 2024

 

CT Automotive Group plc

("CT Automotive" or the "Group")

 

Trading Update

 

On Track and Delivering Margin Improvement

 

CT Automotive, a leading designer, developer and supplier of interior
components to the global automotive industry, is pleased to announce the
following trading update for the six months ended 30 June 2024 ("1H24").

 

Production demand has been robust during the year, with good visibility over
both booked production and tooling revenues extending into the year end and
beyond. Trading in the first half has been in line with management's
expectations.

 

The significant margin improvement initiatives made in FY23 will annualise in
the current year and, alongside ongoing cost efficiencies, are expected to
further improve gross margin in FY24 from the 22% achieved in FY23. These
initiatives are primarily focused on production line automation, consolidation
of some product lines and labour cost savings.

 

Market demand was as expected with some volume moderation in 1H24 as OEMs
aligned inventory levels with normal market conditions and current consumer
demand. The Board anticipates this effect to be partially offset in the second
half of the year by additional volumes from new programme launches with a
number of Tier 1 and OEM customers, including Ford, Marelli and Rivian, which
commenced production in 2QFY24.

 

Net debt is in line with management expectations. Discussions are progressing
well towards securing a new banking debt facility, and are expected to
complete in the coming months.

 

The Group will announce its results for the six months ended 30 June 2024 in
late September 2024.

 

Simon Phillips, Chief Executive Officer of CT Automotive, said "2024 is
proceeding as planned and we have good visibility over production demand into
the medium term. We see significant scope for expansion in all three of our
production centres in China, Mexico and Turkey through a combination of
potential new business wins and growth with existing customers. Combined with
the margin improvements ongoing, the outlook for revenues and profit for 2025
and beyond is positive."

 

 

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

 

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, 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.

 

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