CT Automotive Group PLC on Friday said its trading performance so far this year was encouraging and said results would meet market expectations, despite an error in its inventory calculation increasing its loss for 2022.
CT Automotive is a Portsmouth, England-based designer, developer and supplier of interior components to the auto industry.
The company said it had identified an error in the calculation of its year-end inventory, resulting from adjustments for unrealised profit from intra-group sales.
It expects this to reduce its inventory and net assets at December 31 by approximately $8.4 million as a non-cash adjustment. Of this, $8.3 million existed on the same date in 2021, resulting in an increased loss of $100,000 for 2022.
CT Automotive said the loss would not affect its profitability for the current year. It said: ‘Trading in the current financial year has been encouraging, with strong customer demand and more stable production schedules. As a result, the board remains confident of achieving market expectations for FY23.’
Shares in CT Automotive were down 1.4% at 36.00 pence on Friday in London.
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