Business
Inventory balance sheet adjustments
Inventory balance sheet adjustments.
About this update from Ct Automotive Group Plc
[{"type":"text","content":"\n\n12 May 2023\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (\"MAR\").\nCT AUTOMOTIVE GROUP PLC\n(\"CT Automotive\", the \"Company\" or the \"Group\")\n Inventory balance sheet adjustments\nThe Company has identified an error with regards to the calculation of the year end inventory on consolidation, which relates to a number of years. This is expected to result in the reduction of inventory, and therefore net assets, by c.$8.4m at 31 December 2022, of which c.$8.3m existed at 31 December 2021. Therefore, the impact of these balance sheet movements results in a c.$0.1m increased loss in the year ended 31 December 2022, with the balance being attributable to prior years.\nThe adjustment relates to the calculation of the provision for unrealised profits resulting from intra Group sales and a corresponding absorption of overheads within inventory.\nThe reduction to inventory is a non-cash adjustment. There is no adverse impact to profitability in the current financial year ending 31 December 2023. \nTrading in the current financial year has been encouraging, with strong customer demand and more stable production schedules. As a result, the Board remains confident of achieving market expectations for FY23.\nFor further information please contact:\n\n\n\nCT Automotive\nSimon Phillips, Executive Chairman \nScott McKenzie, Chief Executive Officer \nAnna Brown, Chief Financial Officer\n\n\nvia MHP\n\n\n\n\n \n\n\n \n\n\n\n\nMHP (Financial PR)\nTim Rowntree\nCharlie Barker\n\n\nTel: +44 (0)20 3100 8540\[email protected]\n \n\n\n\n\n \n\n\n \n\n\n\n\nLiberum (Nominated Adviser and Broker)\nRichard Lindley\nBenjamin Cryer\n\n\nTel: +44 (0)20 3100 2000\n\n\n\n \n \nNotes to editors\n \nCT Automotive is engaged in the design, development and manufacture of bespoke automotive interior finishes (for example dashboard panels and fascia finishes) and kinematic assemblies (for example air registers, arm rests, deployable cup holders and storage systems), as well as their associated tool...