Strip Tinning confident after disappointing year

Strip Tinning, a specialist connection system supplier to the automotive sector, reported confidence after a somewhat disappointing 2022 in an update on Tuesday.

The AIM-traded company said it expected revenue for the year to be in line with market expectations, with an underlying EBITDA loss of £2.2m and net debt of £1.4m, making for an improvement from the previous year.

It said sales in the second half recovered significantly from the low of the first six months, although they remained below 2021 levels due to ongoing supply shortages and the ongoing war in Ukraine.

The company also said it had signed a new confidential invoice discounting facility to provide additional financial headroom.

Strip Tinning’s board said that while the 2022 result was not what it originally set out to achieve, it believed the “substantial improvements” made in the year would lead to growth in 2024.

“Although we have been hampered by unfavourable market conditions, it has been a transitional year for Strip Tinning in which we have carefully managed resources and built a foundation for a return to growth moving forwards, typified by our steadily improved revenues in the second half of the year,” said group chief executive officer Richard Barton.

“We remain well-positioned to benefit from the fast-growing EV sector, as well as a reputable, long-term supplier in the glazing market.

“The board remains confident in the prospects of Strip Tinning and is focussed on creating value for shareholders.”

At 1606 GMT, shares in Strip Tinning Holdings were down 10.77% at 58p.

Reporting by Josh White for Sharecast.com.