18th May 2022 15:06
Strip Tinning Holdings PLC - Birmingham-based electrical connectors for automotive sector - Says 2021 revenue and underlying earnings before interest, tax, depreciation and amortisation will be in line with the board's expectations. Annual revenue estimated to be up 29% to GBP11.1 million from GBP8.6 million, with underlying Ebitda to be GBP500,000 versus GBP1.2 million in 2020.
Looking ahead, Strip Tinning warned of a number of headwinds for 2022. "Whilst a slightly improving sales position is anticipated for the remainder of FY22, as a result of previously won new products entering full production, the board now expects to deliver revenues for FY22 consistent with last year, in line with the wider automotive market performance," the company says. "This loss of sales combined with strong inflationary cost pressures in materials and energy in particular, and imbalances in our overhead costs, is impacting margins and profitability."
Strip Tinning said it is putting through price increases across its product range. It retains market share, continues to invest in growth areas such as parts for electric vehicles, and is "confident in the medium-term sales outlook for the business". The company will release its full results for calendar 2021 on June 21.
Current stock price: 109.00 pence, down 26% in London on Wednesday
12-month change: down 41% from 185p listing price in February
By Tom Waite; [email protected]
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