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Highlights

  • In FY23, CTA achieved a revenue of USD 143 million, marking a significant 15% increase from FY22
  • In FY23, CTA’s gross profit showed an impressive surge of 107.4%, driven by enhanced volumes and cost efficiencies
  • CTA’s FY23 profit before tax amounted to USD 5.90 million, a substantial turnaround from a loss of USD 18.80 million in FY22

CT Automotive Group PLC (LSE: CTA) is engaged in the development and manufacture of bespoke automotive interior finishes. It is listed on the FTSE AIM All-Share index and has a market capitalization of GBP 46.83mn.

In fiscal year 2023, CTA achieved a revenue of USD 143 million, marking a significant 15% increase from FY22. This growth was propelled by the recovery of automotive markets throughout 2023 and a 13% rise in production revenue. Its gross profit showed an impressive surge of 107.4%, driven by enhanced volumes and cost efficiencies resulting from the return of direct labour and materials expenditures to pre-COVID levels.

Profit before tax amounted to USD 5.90 million, a substantial turnaround from a loss of USD 18.80 million in FY22. This improvement was attributed to upgraded gross margins and successful margin enhancement initiatives implemented by management.

Recent business update

According to an announcement on July 1, 2024, The Group chose to close its UK manufacturing operations which were conducted under the name Chinatool Automotive Systems Limited. This closure was finalized on June 28, 2024, through a creditors' voluntary liquidation.

Company outlook

The company remains optimistic about its future outlook despite a slowdown in demand as OEMs manage their inventory levels. Recent contracts with Ford, Marelli, and Rivian are expected to help offset this. Initiatives to improve profit margins implemented in FY23 will continue to boost profitability in FY24. Furthermore, significant growth is anticipated in 2025, driven by secured contracts and the launch of new products.

Top 10 shareholders

Approximately 95.55% of the total shares of CTA are held by its top 10 shareholders. Simon Brian Phillips holds maximum stake in the company with a shareholding of around 26.77%, followed by Otus Capital Management Limited with approximately 17.86%, as shown in the chart below:

Stock performance

The stock price of CTA has dropped by approximately 8.14% in the past month and has seen a decrease of about 11.42% over the last six months. It has a 52-week low of GBX 37.00 and a 52-week high of GBX 85.00. Currently, the stock is trading above the midpoint of its average of 52-week high and low.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 15 July 2024. The reference data in this report has been partly sourced from EODHD/Others.