Strip Tinning Holdings PLC on Tuesday said it expects a narrower loss and said the supply of cell contact systems for a US contract will likely not fall into the crosshairs of US tariffs on automobile imports.
Shares in Strip Tinning were up 60% to 29.66 pence in London on Tuesday afternoon. The shares were still down 21% over the last twelve months.
The Birmingham, England-based provider of connection systems to the automotive sector said it expects its adjusted loss before interest, tax, depreciation and amortisation in 2025 to be £900,000, ‘half that reported’ for 2024.
The company expects to report its 2024 results in early May.
Strip Tinning said trading in the Battery Technologies division has been strong, and it expects divisional revenue for 2025 to be ‘more than 2.5 times’ 2024.
‘This strong performance in the higher margin BT division is more than offsetting softness in the Glazing division, reflective of the wider automotive sector,’ the company said.
Strip Tinning is supplying a Cell Contact system for battery pack modules for a US-based autonomous vehicle programme.
It now expects the contract to be worth £56.8 million, up from £43 million.
‘This contract is gathering pace and is the primary driver of the increased sales in 2025 as sales of pre-production parts has increased,’ Strip Tinning said.
The company said it does not expect the supply of the systems to fall under the proposed US auto parts tariffs, as the designated export commodity category code which the CCS uses does not fall within the automotive parts ECC coding categorisations.
In addition, Strip Tinning said it has applied to the UK government’s automotive transformation fund for a grant of up to £5.2 million to support additional capacity.
It expects further news on the outcome of the application early in the third quarter.
The company said it continues to assess its options to secure the required funding for ‘ongoing operational demands’.
Strip Tinning said it expects to receive a payment of £520,000 from the UK tax authority towards the end of April. It expects a further tax claim worth £250,000 in the second half of the year.
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