Shares at CT Automotive jumped over seven per cent on Thursday morning after it revealed profit for the half-year had risen nearly 60 per cent.
The firm, which suppliers interior parts to the likes of Lamborghini, Bentley, Nissan and Lotus, reported pre-tax profit of $4.1m (£3.1m) over the six months ended 30 June, up from $2.5m the year prior.
On an adjusted basis, earnings before interest, taxation, depreciation and amortisation (EBITDA) rose from $6.7m to $7.4m, with margins also increasing to 12.2 per cent.
Shares were trading up 7.41 per cent by mid-morning.
“Our focus on delivering margin improvement continues to come through with profit before tax on
track to be in line with market expectations for the full year and the profit before tax margin
slightly ahead,” Simon Phillips, Chief Executive Officer, said.
Revenue, however, fell by $8.2m to $60.5m as demand dipped slightly year-on-year.
The Portsmouth-headquartered company bagged a number of new contracts over the six months, worth an estimated $27.5m per year and propping up its order book through to 2027.
CT Automotive revealed in May it swung to a profit of $5.9m in 2023, as the global automotive market recovered from pandemic-era computer chip shortages and China re-opened to the world.
The announcement sent shares up nigh on 20 per cent by mid-afternoon that day and signalled the beginning of a rebound after a difficult few years following a 2021 listing on London’s Aim. Shares are up over 33 per cent over the last 12 months.
Looking ahead, Phillips said the group’s robust order book left it “well placed to grow revenue by taking market share.”