REG - CT Automotive Group - Trading Statement

CT AutomotiveAnnouncement

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RNS Number : 7802R  CT Automotive Group PLC  05 February 2026

05 February 2026

 

CT Automotive Group plc

("CT Automotive" or the "Group")

Trading Update

Sustained improvement in profitability

 

CT Automotive, a leading designer, developer and supplier of interior
components to the global automotive industry, is pleased to provide the
following trading update, demonstrating a third consecutive year of
improvement in underlying profit before tax.

As previously announced the Group expects to report revenues for FY25 of at
least $113 million, in line with current market expectations, with net debt at
31 December 2025 expected to be $7.7 million.  Adjusted profit before tax is
expected to be at least $10.0 million.¹

Whilst revenues were broadly unchanged from the prior year, reflecting ongoing
market uncertainty, CT Automotive has significantly improved underlying profit
before tax for the third consecutive year demonstrating that our relentless
focus on operational efficiency is delivering sustained results.

Reported underlying profit before tax was impacted by approximately $0.4
million of launch-related costs, incurred in Q4, as the Group successfully
executed six new program launches in Mexico. Costs are now under control, and
production has returned to targeted efficiency levels. There is also a
non-cash stock valuation adjustment as a consequence of improved production
efficiency and lower manufacturing cost rates, which reduced the year-end
inventory valuation.

Contract Wins

Building on new contracts which CT Automotive has secured in H125 (and
announced in our interim results in September), CT Automotive has secured a
further 7 contracts in H225 with annualized revenue of approx. $10 million*.
Program launches are scheduled for 2027 and 2028.  This brings total new
contract wins for CT Automotive in FY25 to 15 with an expected annualized
revenue of approx. $47 million when all programs are fully operational by
2028.  This is a significant improvement on new business wins in previous
years (FY24: 8 new contract wins).

Outlook

Looking ahead the Group is well positioned for FY26. The successful completion
of multiple major program launches in Mexico, improving operational execution
across all facilities, and a continued focus on cash discipline and working
capital management provide a solid foundation for the year ahead.

Due to ongoing market uncertainty, the Board is taking a conservative approach
to FY26 revenue and profitability which is now expected to be modestly ahead
of FY25, with the benefits of recently launched programs contributing more
fully as they mature through the year.

The Board is pleased with the sustained improvement in the Group's underlying
profit before tax over the last three years. In FY26 CT Automotive will focus
on broadening its customer base and increasing content per platform as well as
targeting a reduction in inventories and driving further operational
efficiencies across global operations.

Simon Phillips, Chief Executive Officer of CT Automotive said:

"I am delighted that our relentless drive for operational efficiency has
produced sustained continuous improvement in our underlying profit before
tax.   Our focus remains on increasing top-line revenue and to that end our
expanded sales team are now fully embedded and working hard to win new
business and increase platform content across models. Contract wins have
increased to 15 this year, a significant improvement on previous years.
  Our operations are positioned to accommodate increased production without
additional cost pushing profitability directly to the bottom line"

¹ Immediately prior to this announcement, the Company believes that market
expectations for the year ended 31 December 25 were for revenues of $113m and
adjusted Profit Before Tax of $10.5m respectively.

*In aggregate, once all contracts are operational.

 

Listen to CEO Simon Philips provide further insight on this trading update

 

    Enquiries:

 CT Automotive

 Raymond Bench, Non-Executive Chairman

 Simon Phillips, Chief Executive Officer

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

 Alex Bond, James Todd, Samed Ethemi

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 manufacturers
("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 with
additional manufacturing facilities in Mexico and Türkiye and distribution
facilities and assembly lines in Europe, Asia and the US.  The Company has a
low cost design and administrative centre in India.

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 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.

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