REG - CT Automotive Group - Trading Update

CT AutomotiveAnnouncement

14/02/2022 07:00

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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: +44 (0)20 3100 8540

Tim
Rowntree
                CTAutomotive@mhpc.com

Charlie Barker

Charlie Protheroe

 

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

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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