Strip Tinning Shows Promising Growth Ahead of FY24 Results
Positive Outlook for Strip Tinning Holdings
Strip Tinning Holdings plc (AIM: STG), a prominent player in specialized automotive connection systems, has shared a pre-close trading update for its fiscal year concluding on December 31, 2024. The company revealed that it achieved revenues of £9.0 million alongside an adjusted EBITDA loss of £1.9 million, figures which are consistent with market forecasts. Importantly, the company's gross margins saw a commendable rise to 33.2%, marking an increase of 2.6% from the prior year.
Growth in Lifetime Value of Nominations
One of the standout achievements for Strip Tinning was the remarkable 311% increase in the lifetime value of its nominations, soaring to £106.0 million from £34.1 million at the beginning of the fiscal period. This exceptional growth can be attributed to successes across multiple divisions, particularly in the Battery Technologies Division which secured £56.8 million, and the Glazing Connectors Division that contributed £20.1 million.
Significant Contracts and Market Potential
The month of December brought about significant accomplishments for Strip Tinning, including securing a nomination to supply Flexible Printed Circuits for a new e-bike battery pack estimated to be worth over £1 million. The company also received a prototype order from a major UK automobile original equipment manufacturer (OEM) and marked its sixth nomination for a PDLC Glazing connector anticipated to commence production by the end of 2025.
European Market Insights
Strip Tinning noted positive trends in the European car market, as indicated by data from the European Automobile Manufacturers' Association. An increase of 0.5% in total car registrations was recorded up to the end of November 2024. While there was a slight decline in the latter half of the year, the market appears to be stabilizing, leading Strip Tinning to project that the European automotive sector will maintain steady momentum through 2025.
Optimism for Future Sales Growth
Adam Robson, the Executive Chair of Strip Tinning, expressed a hopeful outlook for the company’s future, emphasizing ongoing operational enhancements, sales successes, and robust relationships with customers. He forecasts substantial growth, with sales expected to triple to over £27 million by the conclusion of FY27.
Upcoming Preliminary Results
The company plans to unveil its preliminary results for FY24 in April. This trading update has been framed within the context of a press release issued by Strip Tinning Holdings plc.
Frequently Asked Questions
What were the revenue figures for Strip Tinning for FY24?
Strip Tinning reported revenues of £9.0 million for the fiscal year ending December 31, 2024.
How much did Strip Tinning's EBITDA loss amount to?
The company recorded an adjusted EBITDA loss of £1.9 million.
What growth was achieved in the lifetime value of nominations?
The lifetime value of nominations increased by 311%, reaching £106.0 million.
What notable contracts did Strip Tinning secure recently?
Significant contracts include supplying Flexible Printed Circuits for a new e-bike battery pack and a prototype order from a major UK automobile OEM.
What are the sales projections for Strip Tinning by FY27?
Adam Robson predicts that sales could exceed £27 million by the end of FY27.
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