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(Sharecast News) - Strip Tinning reported lower revenue for the first half of 2025 on Monday, reflecting ongoing headwinds in the European automotive market, but reiterated confidence in its long-term growth plans supported by three major contract wins.
For the six months ended 30 June, total revenue fell to 4.5m, from 4.8m a year earlier.
Sales in the battery technologies (BT) division rose to 1.2m, up from 0.3m, while glazing division revenue declined to 3.3m from 4.5m, impacted by weak car production volumes and customer launch delays.
Gross margins improved to 44.1% from 35.4%, with adjusted EBITDA narrowing to a loss of 0.3m from a 0.8m loss in the same period last year.
The AIM-traded company said it generated 0.4m in cash from operations, compared to a 1.9m outflow in the first half of 2024, and ended the period with 0.1m in cash and 0.4m available through its credit facility.
"This has been a challenging period with the company working to deliver on its three significant nominations while under significant cost and cash pressures," said CEO Mark Perrins.
"Despite experiencing short-term trading challenges consistent with the automotive sector as a whole, the company has worked to stabilise its cash position and deliver the programmes that it has won."
He added that the company's new business nominations had given it "great confidence" in its market and investment strategy, and provided a strong underpinning to its expectation of a doubling in sales between 2024 and the end of 2027.
"Our immediate focus is on delivering the current nominations into production."
Operationally, the BT division delivered a key C sample order for its Zoox Cell Contact System, while the glazing division began supplying two 'smart glass' PDLC projects with a combined lifetime sales value of 18.6m.
Total lifetime sales across all nominations remained at 105.4m.
The company also secured a 0.85m grant under the APC26 programme and received a 0.7m research and development tax credit from HMRC.
An application under the ATF grant scheme was progressing, with a decision expected in late 2025 or early 2026.
Despite the ongoing challenges, the board said it remained confident in meeting market expectations for adjusted EBITDA in 2025, which currently stood at a projected loss of 0.9m.
At 1024 BST, shares in Strip Tinning Holdings were down 9.09% at 25p.
Reporting by Josh White for Sharecast.com.