REG - Strip Tinning Hldgs - Q3 Trading Update

Strip Tinning HoldingsAnnouncement

31/10/2023 07:00

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RNS Number : 7666R  Strip Tinning Holdings PLC  31 October 2023

31 October 2023
 

Strip Tinning Holdings plc

("Strip Tinning" or the "Company")

Q3 Trading Update

Strip Tinning Holdings plc (AIM: STG), a leading supplier of specialist
connection systems to the automotive sector, is pleased to provide an update
on trading covering the period 1 July to 30 September 2023 ("Q3").

Trading in the third quarter of the financial year ending 31 December 2023
("FY23") has been in line with management's expectations, and accordingly the
Board expects to meet FY23 market guidance¹.

Year-to-date revenues of £8.2m (Q3 YTD FY22: £8.0m) and a positive adjusted
EBITDA performance represents a steady continuation of the turn-around from
the losses of 2022. Improved performance has primarily been driven by the
prioritisation of increased gross margins due to price rises which came into
effect on 1 January 2023, as well as enhanced productivity.

The European automotive market continues to grow strongly, with ACEA reporting
that overall year-to-date new car registrations are up by 16.9%². Strip
Tinning continues to be well-positioned to capitalise on the improving
prospects across the wider market. This is reflected in the full year sales
outlook which is ahead of expectations, and in the growing new nominations
pipeline which we expect will benefit sales in FY24 and beyond.

On the Glazing side, the Company is supplying prototypes on multiple high
value programmes which are expected to result in nominations, both in the
current year and FY24.  These programmes are in the target segment of higher
technology applications, often including flexible printed circuit elements
produced on the recently completed new production line.

The EV pipeline continues to develop well and the Company now has in hand
orders for protype parts on five new EV programmes.  The Board had expected
the announcement of a major EV nomination with a Tier 1 by now, and whilst the
Company remains confident of securing the nomination, this is now likely to be
in early 2024, with the Tier 1 award from the end customer yet to be
determined. The start of production date for the programme remains unchanged.

The Company is pleased to announce that it has secured a £166k grant from the
Advanced Propulsion Centre³ UK ("APC") Feasibility Studies competition which
supports projects which will develop large-scale manufacturing facilities in
the UK. This grant is further to the £1.4m of funding previously awarded by
the APC's Scale-up Readiness Validation ("SuRV") scheme.  The new grant is
being primarily spent with a leading automotive consultancy who will complete
their study in the first quarter on 2024.

Adam Robson, Executive Chair of Strip Tinning, commented:

 

"It is pleasing that the operational enhancements implemented have driven
improved financial performance in the current year to date. Having learnt
valuable lessons from the external difficulties faced in FY22, we have emerged
a more mature business and well placed to exploit the increasing number of
opportunities we are seeing across the wider automotive sector. We are
encouraged with the growing size, as well as quality of our sales pipeline for
both our EV and Glazing programmes, and we look forward to announcing new
production nominations as they arise."

 

 

(1)     Strip Tinning understands that market expectations for the year
ended 31 December 2023 are for revenues of £9.4m, Adjusted EBITDA of £0.1 m
and net cash/debt of -£3.6m. (Source: FactSet)

 

(2)
https://www.acea.auto/pc-registrations/new-car-registrations-9-2-in-september-battery-electric-14-8-market-share/

 

(3)   The APC  is a non-profit organisation that collaborates with UK
Government, the automotive industry and academia to accelerate the transition
to a net-zero automotive industry -
https://www.apcuk.co.uk/86-9-million-for-scale-up-and-rd-of-net-zero-vehicle-technology/

 

Enquiries:

Strip Tinning Holdings
plc
Via Alma PR

Adam Robson, Executive Chairman

Richard Barton, Chief Executive
Officer

Adam Le Van, Chief Financial Officer

 

Singer Capital Markets (Nominated Adviser and Sole
Broker)                    +44 (0) 20 7496 3000

Rick Thompson

James Fischer

 

Alma (Financial
PR)
+44 (0) 20 3405 0205

Josh
Royston
striptinning@almastrategic.com

Joe Pederzolli
 

 

 

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