Strip Tinning Holdings (AIM:STG), the AIM-listed manufacturer of specialist electrical connection systems, grew revenue 18% to £5.4 million in the six months to 30 June, up from £4.5 million a year earlier.
The increase was driven by its Battery Technologies division, where revenue jumped 62% to £1.9 million as its Cell Contacting System (CCS) programme entered serial production in the second quarter.
Glazing revenue rose a more modest 3% to £3.4 million, with two smart-glass PDLC nominations, together worth £18.6 million in lifetime sales, both starting serial production during the quarter, one of them ahead of schedule.
Gross margin fell to 38.3% from 44.1%, reflecting a smaller share of higher-margin pre-serial pricing and higher outsourcing costs while new capital equipment came online; those extra costs were removed by period end.
The Adjusted EBITDA loss narrowed 49% to £0.15 million from £0.28 million, while the operating cash outflow was £0.3 million against a £0.4 million inflow a year earlier.
Cash stood at £0.2 million at period end, supported by £0.2 million of undrawn facility headroom, a subsequent £250,000 loan announced 7 September, and a £264,000 R&D tax credit refund received in July.
Net debt rose to £2.6 million from £1.1 million at the end of 2025, driven by higher invoice-discounting balances and fixed-asset investment; the board expects net debt to rise modestly before easing from the second quarter of 2027.
The group secured a £3.0 million DRIVE35 grant to support UK manufacturing scale-up, with Phase 1 conditions satisfied and £0.6 million approved for spending pending Phase 2 sign-off.
"With these nominations now in serial production and DRIVE35 funding supporting the next stage of scale-up, we enter H2 2026 with a clearer path to deliver sustainable profitable growth," said Mark Perrins, chief executive officer.
The board said it remains confident of meeting full-year market expectations, citing a strong order book and customer orders received since 30 June.
News Intelligence what this means for the company
Strip Tinning reported 18% revenue growth to £5.4 million in H1 2026, driven by its Battery Technologies division jumping 62% as its Cell Contacting System entered serial production—a key inflection point for a company that secured a £3 million DRIVE35 grant to scale UK manufacturing of that same technology. Gross margin compressed due to outsourcing costs during equipment ramp, but Adjusted EBITDA loss narrowed 49%, and management reaffirmed full-year guidance of £13.2 million revenue and £0.6 million Adjusted EBITDA, supported by a strong order book.
The shift from pre-serial to serial production in both Battery Technologies and Glazing divisions marks a transition from R&D burn to revenue scaling. However, cash position remains tight at £0.2 million (plus £0.2 million undrawn facility headroom), net debt has more than doubled to £2.6 million, and the company expects net debt to rise further before easing in H2 2027—execution risk on margin recovery and cash generation will determine whether this inflection sustains.
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