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(Sharecast News) - Strip Tinning posted a wider loss for 2024 on Friday, but said it was still well-positioned for accelerated growth, particularly in its battery technologies division, which was expected to more than double revenue in the current year.
The AIM-traded automotive components supplier reported an adjusted EBITDA loss of 1.9m for the year ended 31 December, compared with a small profit of 0.1m in 2023.
Revenue declined to 9m from 10.8m, with sales in the glazing division down to 8m and battery technologies sales broadly flat at 1m.
Despite the decline in top-line performance, the company reported improved gross margins of 33.1%, up from 30.1% in 2023, and highlighted a substantial increase in its lifetime sales value of nominations, which rose to 105.4m from 34.1m.
Strip Tinning said it ended the year with 0.5m in cash and used 2.3m in operating activities, compared with a 1m inflow in the prior year.
The battery technologies division was now seen as the group's key growth driver, supported by strong order visibility and a ramp-up in pre-production sales for its Zoox contract, which was expected to enter volume production in the second quarter of 2026.
It said its glazing division remained cash generative and was contributing to funding its own growth, helped by improved margins and recent supply nominations.
Chairman Adam Robson stepped down from the board following the results, with Paul George appointed as non-executive chair.
Looking ahead, the company said it planned to secure further funding to support working capital needs, including potential government-backed debt and grants, as it prepared for higher volumes in late 2026.
The board reaffirmed guidance for 2025 adjusted EBITDA in line with market expectations and aimed to turn EBITDA-positive in 2026 and become cash generative by 2027.
"2024 was a year of exceptional success at winning nominations for future years' revenues," said executive chair Adam Robson.
"We started the year holding nominations with a total lifetime value of 34.1m and over the year this has increased to 105.4m.
"We believe that 2025 will be a year of delivery for Strip Tinning, as the business works to deliver the new nominations over 2025 and 2026."
Robson said the company would continue the investment needed to maximise its success in converting the strong battery technologies and glazing sales nominations it had secured.
"I have utmost confidence in the executive team to deliver on the company's growth plans and look forward to watching the business develop from afar."
At 1502 BST, shares in Strip Tinning Holdings were up 10.53% at 21p.
Reporting by Josh White for Sharecast.com.