CT Automotive Group PLC said on Monday it expects its full-year results to come in ahead of expectations, despite the ongoing semiconductor shortages reducing vehicle production.

The Portsmouth, England-based maker of car interiors said annual revenue for 2021 is expected to be around $133 million, up 21% from $110 million in 2020. It said this was driven by early completion of some of its engineering, design and development programmes in the final quarter, in addition to a better performance in serial production.

Following the strong trading performance, underlying earnings before interest, tax, depreciation and amortisation are expected to be ahead of expectations.

Lower production in China did slightly hit gross margins, which came in lower than expected, as destocking also reduced production efficiency.

Looking ahead to 2022, it expects global vehicle production to recover, with automotive supply chain issues to resolve by 2023. It has ‘resilient’ order volumes for the year so far, and around 95% of 2022 anticipated revenue and around 90% of 2023 to come from projects currently in production.

It continues investment into expanding facilities in the Czech Republic, and new facilities in Mexico, with the Mexican plant on track to start production in the middle of this year.

CT Automotive shares were trading up 1.8% at 173.00 pence each in London on Monday morning. This is up 18% from its initial public offering price of 147p back in December.

Chief Executive Officer Scott McKenzie commented:‘We are pleased with our trading performance in 2021, which was achieved against a challenging global automotive backdrop. We remain well placed to build on our strong track record of growth, client relationships and manufacturing excellence as global semiconductor shortages ease and vehicle production volumes recover.’

Full-year results for 2021 will be released in May.

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