Trading Statement

CT Automotive, a leading designer, developer and supplier of interior components to the global automotive industry, is pleased to announce the following trading update for the six months ended 30 June 2024 ("1H24").

Production demand has been robust during the year, with good visibility over both booked production and tooling revenues extending into the year end and beyond. Trading in the first half has been in line with management's expectations.

The significant margin improvement initiatives made in FY23 will annualise in the current year and, alongside ongoing cost efficiencies, are expected to further improve gross margin in FY24 from the 22% achieved in FY23. These initiatives are primarily focused on production line automation, consolidation of some product lines and labour cost savings.

Market demand was as expected with some volume moderation in 1H24 as OEMs aligned inventory levels with normal market conditions and current consumer demand. The Board anticipates this effect to be partially offset in the second half of the year by additional volumes from new programme launches with a number of Tier 1 and OEM customers, including Ford, Marelli and Rivian, which commenced production in 2QFY24.

Net debt is in line with management expectations. Discussions are progressing well towards securing a new banking debt facility, and are expected to complete in the coming months.

The Group will announce its results for the six months ended 30 June 2024 in late September 2024.

Simon Phillips, Chief Executive Officer of CT Automotive, said "2024 is proceeding as planned and we have good visibility over production demand into the medium term. We see significant scope for expansion in all three of our production centres in China, Mexico and Turkey through a combination of potential new business wins and growth with existing customers. Combined with the margin improvements ongoing, the outlook for revenues and profit for 2025 and beyond is positive."