CT Automotive Group plc (LON:CTA), a leading designer, developer and supplier of interior components to the global automotive industry, has provided an update on its financial performance for the year ended 31 December 2021, following admission to trading on AIM on 23 December 2021.
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.
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.
CT Automotive 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.”