CT Automotive Group (LSE:CTA), a designer and supplier of interior components to the global automotive industry, reported revenue up 15% to $62.1m in the six months to 30 June, against $54.1m a year earlier.
Production revenue rose 14% to $56.9m and tooling revenue climbed 30% to $5.2m, with growth described as slightly ahead of management expectations and driven by strong customer demand and new programme launches at its Mexico facility.
Underlying pre-tax profit for the first half is expected to fall materially below the prior-year comparative, after geopolitical instability pushed up operating costs and disrupted supply chains, prompting higher freight costs and increased stockholding in Mexico, along with unplanned costs from rectifying production inefficiencies during the ramp-up.
Facilities in China and Türkiye continue to perform in line with expectations, with cost efficiencies already visible in Türkiye and further gains expected as China consolidates into a single manufacturing site.
"Our factory operating system is the clearest example of how we are changing the way this business runs", said chief executive Simon Phillips, adding that it has given the Mexican management team live control of the factory floor.
The board expects materially stronger second-half profitability to offset the first-half shortfall, supported by improvements already embedded in Mexico and a new paint facility reducing stock levels and reliance on imported components.
It added that it remains on track to meet market expectations for the year to 31 December, previously set at revenue of $123.5m and adjusted pre-tax profit of $10.2m.
Interim results are due in early September.
News Intelligence what this means for the company
CT Automotive delivered 15% revenue growth to $62.1m in H1, but underlying pre-tax profit fell materially year-on-year due to Mexico ramp-up costs, geopolitical supply-chain disruption, and higher freight expenses. The board expects H2 profitability to recover enough to meet full-year guidance of $123.5m revenue and $10.2m adjusted pre-tax profit, banking on Mexico improvements and a new paint facility to reduce inventory drag.
Revenue momentum is real, but H1 profit collapse signals execution risk in the Mexico expansion—the company is betting heavily on H2 cost absorption and operational leverage to validate its full-year targets. Interim results in early September will be critical to confirm whether the board's recovery narrative holds.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
