# CT Automotive reports profitable FY23 trading and strong outlook

- Link: https://www.directorstalkinterviews.com/ct-automotive-reports-profitable-fy23-trading-and-strong-outlook/4121139574
- Published: 2024-01-26T07:09:29+00:00
- Author: Amilia Stone

**CT Automotive Group plc **([LON:CTA](https://www.directorstalkinterviews.com/company/ct-automotive-group-plc/cta.l)),
a leading designer, developer and supplier of interior components to the global 
automotive industry, has issued the following trading update for the year ended 
31 December 2023, in advance of the publication of its annual results.

**Return to profitable trading  **

The Group returned to profit in FY23, with the strong performance of H1 continuing
into H2 as global automotive production volumes continued to recover.

FY23 revenue is expected to be not less than $140 million^(1). The improvement from
$124 million in FY22 came from growth in both production revenue and revenue from
tooling projects which completed in FY23.  As previously announced, tooling revenue
has been weighted towards the second half of the year, reflecting the timing of 
customer projects.

Group gross profit margins have continued to improve, supported by the ongoing efficiency
initiatives. These initiatives, which include automation, consolidation of certain
product lines and labour cost savings through more efficient work streams, have 
progressed as planned over the year, delivering further savings in H2.

As a result, the Group expects to report FY23 underlying profit before tax of c.
$8 million^(1).

**Balance sheet strengthened**

The Group’s balance sheet strengthened over the year as a result of strong operating
cash conversion from the improved trading performance in the second half of the 
year, having also benefitted from the successful $9.6 million fundraise in H1.

The year end net debt position (pre IFRS 16) is expected to be c.$6 million^(1) (
FY22: $12 million), reduced from $9 million^(1) as at 30 June 2023.

**Outlook**

The Group is encouraged by healthy order volumes and has entered FY24 with strong
visibility of booked production and tooling revenue, with recent new programme wins
extending visibility into future years.

The Board is closely monitoring the situation in the Red Sea and to date the Group
has not experienced any material impact. The Group continues to maintain buffer 
stocks to mitigate any short-term disruption to shipping times.  While mindful of
the wider macroeconomic and geopolitical uncertainty, the Board remains confident
of making progress in the year ahead and in CT Automotive’s long-term growth prospects.

_1.   Unaudited_

Share on: