GCICT Automotive shares jump on return to profit in FY23
() , a developer and supplier of automotive components, issued a trading update for the year ended December 31, 2023 (FY23) ahead of publication of its annual results.
CT Automotive returned to profit in FY23, with strong performance of H1 carrying momentum into H2 as global automotive production volumes continued to recover. The group expects FY23 revenue to be no less than US$140m, up from US$124m in FY22, driven by growth in both production revenue and tooling projects completed during the period. As previously announced, tooling revenue was weighted towards H2, reflecting the timing of customer projects.
Gross profit margins continued to improve, supported by ongoing efficiency initiatives including automation, consolidation of product lines, and labour cost savings through more efficient workstreams. As a result, CT Automotive expects to report FY23 underlying profit before tax of approx. US$8m.
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Excellent results from CT Automotive with volume recovery and margin improvement continuing into FY24, driven by the strong comeback of the automotive industry. Markets welcomed the revenue boost, sending shares 14.4% higher on Friday. CT Automotive entered FY24 with healthy order volumes and strong visibility of booked production and tooling revenue, with recent new programme wins extending visibility into FY25 and beyond.
The group's balance sheet continues to strengthen, carrying momentum from strong cash conversion in H2, also having benefitted from a US$9.6m fundraise in H1. Debt is steadily declining as well, with 's end-year debt position (pre IFRS 16) expected to be US$6m, down from US$12m in FY22 and US$9m on June 30, 2023. Abovementioned cost-saving measures delivered savings throughout the year, accelerating in H2 as the initiatives matured.
said it maintained buffer stocks to mitigate potential short-term disruption to shipping times through the Red Sea due to current geopolitical uncertainty.
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