CT Automotive, a designer and supplier of interior components for cars, swung to a full-year profit in 2023 amid a recovery in the global automotive market and the re-opening of the Chinese market.
Pre-tax profit hit $5.9m (£4.6m), up from an $18.8m (£14.8m) loss the year prior.
Revenue rebounded from $124.3m (£98m) to $143m (£113m), which the firm said was “driven by production revenue” and the “strong recovery in automotive markets during 2023.”
The firm’s gross profit margin improved from 12 per cent to 22 per cent as it benefitted from a return of direct labour and materials spend to pre-Covid levels.
This was aided in particular by the re-opening of the Chinese automotive market following years of lockdown. Its closure had hampered the firm since it IPO’d on London’s junior AIM in December 2021.
China’s ‘Zero Covid’ policy halted production for 20 per cent of the prior year, CT said, causing severe disruption and bumping up costs significantly. It meant the company went to its shareholder base in May last year for $9.6m in backing to get through.
Simon Phillips, Chief Executive Officer of CT Automotive, said: “Our markets re-opened in 2023 after a pro-longed hiatus relating to the Covid pandemic.
“As a result, our business bounced back strongly and quickly into profitability. We grew the business, raised new capital and reset our financial position.
“The improved market and successful fundraise allowed our business to flourish in the second half and we used this period to drive new cost efficiencies across the business, enhancing our performance and setting the business up for sustained success with trading in the first part of 2024 in line with expectations.”
Looking ahead, the group said demand volumes had “moderated” in line with expectations but could be offset by a growing pipeline, which includes the likes of Lotus, Lamborghini, Ford, Marelli and the EV startup Rivian.
Net debt shrunk from $12.2m (£9.6m) to $3.8m (£3m) and CT said it was in “advanced negotiations to secure a new debt facility.”