21st Jun 2022 12:36
Strip Tinning Holdings PLC - Birmingham-based electrical connectors for automotive sector - Says its wholly owned subsidiary Strip Tinning Ltd turns to loss in 2021 as costs rise due to inflation and supply chain disruption. Pretax loss stands at GBP1.1 million versus a profit of GBP349,000 in 2020. Cost of sales increase to GBP7.9 million from GBP5.0 million. Administrative costs widen to GBP4.2 million from GBP3.2 million. The revenue increase to GBP11.2 million from GBP8.6 million is not enough to stay profitable in 2021.
"Uncertainty in the global and UK economies has persisted into 2022. The European car market, which accounted for 57% of group sales in 2021, has softened considerably with passenger car registrations declining 21% in April 2022 compared to the same period in 2021," Chief Executive Officer Richard Barton says.
"Supply chain disruptions have been heightened by Russia's invasion of Ukraine, which has worsened the shortage of semiconductors and wiring harnesses, and recent Covid-19 related lockdowns in Shanghai have all negatively affected car production, with a number of original equipment manufacturer plants halting production. These uncertainties are likely to continue in the near term and will continue to impact the glazing business," Strip Tinning explains.
Current stock price: 95.75 pence, unchanged on Tuesday
12-month change: down 48%
By Tom Budszus; [email protected]
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