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Strip Tinning Holdings PLC - Birmingham-based electrical connectors provider for automotive sector - Swings to a pretax loss of £2.9 million in the six months to June 30 from a profit of £369,000 a year earlier, as revenue declines by 19% to £4.7 million from £5.8 million. Administrative expenses widen to £2.8 million from £1.8 million a year ago.
Glazing product sales fall 28% to £4.1 million from £5.7 million due to the ‘deterioration in the automotive sector as a result of well publicised external factors heightened by Russia's invasion of Ukraine’, the firm explains.
Chief Executive Officer Richard Barton says: ‘In spite of a challenging backdrop, in which the automotive sector has sharply declined amidst sector-wide headwinds, the board still retains a strong degree of confidence in the medium-term prospects of the business, typified by the recent £1.4 million government grant award, which will be used to scale up EV production and increase market share.’
Looking ahead, Strip Tinning says sales in the second half of 2022 continue to improve, but due to the slower than previously expected rate of market recovery, it has now stopped production of some low margin Glazing products.
The firm also expects that earnings before interest, tax, depreciation and amortisation in the second half to remain negative, as external headwinds are expected to remain and trading in the Glazing business overall will remain challenging.
Current stock price: 65.50 pence, down 13%
12-month change: down 65% from February 16
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