Business
Trading Update
Trading Update.
About this update from Ct Automotive Group Plc
[{"type":"text","content":"\n \n \n 8 December 2022\n \n \n \n \n \n \n \n \n THIS 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\").\n \n \n \n \n \n \n \n \n \n \n \n CT AUTOMOTIVE GROUP PLC\n \n \n \n \n (\"CT Automotive\" or the \"Group\")\n \n \n \n \n \n \n \n \n \n TRADING UPDATE\n \n \n \n \n \n \n \n \n CT Automotive, a leading designer, developer and supplier of interior components to the global automotive industry, today provides an update on its performance for the year ending 31 December 2022 (\"FY 2022\").\n \n \n \n \n \n As previously announced, trading in the first half of the year was in-line with the Board's expectations, with strong end customer demand building into Q4 as global vehicle production volumes began to recover. However, the Group has seen a re-emergence of supply chain disruption across the operating environment, including shortages in semi-conductors, and the impact of specific operational challenges at its manufacturing facilities. Delays in the start of production on new orders has also resulted in the Group incurring costs in connection with Tooling, with the associated revenue not now expected to be recognised until FY 2023 which means that related profits of c$2.5m will also not be recognised until FY 2023. As a result, FY 2022 revenues are expected to be lower than previously anticipated at c.$120m, with higher costs leading to an expected adjusted loss before tax of around $11.0m.\n \n \n \n \n \n The enforcement of the Government's Zero-Covid policy in China resulted in the temporary closure of some of the Group's manufacturing facilities and local suppliers, leading to significant destocking and increased costs in the second half of the year as the Group incurred costs to catch up production and expedite delivery of materials from local suppliers. \n \n \n \n \n \n The Group continues to implement cost savings initiatives focused on improving efficiencies and margins, and reflecting the changing demand environment. The full benefits of these initiatives will be felt in FY 2023. Good further progress has been made on key initiatives focused on internal cost improvements, inflation-based customer recoveries a...