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(Sharecast News) - Strip Tinning Holdings said on Monday that its adjusted EBITDA loss for the year ended 31 December was better than market expectations, as operational improvements and research and development tax credits helped narrow losses ahead of several major product launches.
In a pre-close trading update, the AIM-traded supplier of specialist connection systems for battery modules and automotive glazing applications said the adjusted EBITDA loss for 2025 was 0.5m, compared with market expectations for a 0.9m loss.
Revenue was in line with forecasts at 8.6m.
The improvement in adjusted EBITDA included around 0.2m from underlying trading performance and a further 0.2m from research and development tax credits recognised as other revenue under the new RDEC scheme.
Strip Tinning said management focus on operational efficiency and improved margins on sample and prototype orders helped lift gross margin by 8.5 percentage points to 41.7%.
Cash at year-end stood at 617,000, up from 512,000 a year earlier, reflecting continued tight cash control aligned to the existing order book.
Strip Tinning said the 2025 period was centred on preparing three major projects for launch.
The cell contacting system for the battery pack in the Zoox robotaxi programme remained on track for serial production in early the second quarter of 2026, while two smart glass PDLC roof connector projects were ramping up pre-serial volumes, with serial production expected in the second and third quarters of 2026.
On its major battery project, the company said it had delivered around half of the D-phase order and expects to complete the balance by the end of February, after which it anticipated an order for production part approval process components.
Management said discussions with senior members of Zoox's battery management team during a visit to the United States in January reinforced confidence in readiness for serial production early in the second quarter.
The group also confirmed receipt in December of 133,000 relating to its 2022 R&D tax credit claim, alongside 292,000 linked to its 2024 claim.
In addition, Strip Tinning said the APC26 consortium grant project with JLR and other partners had met all initial start-up milestones, with the first quarterly grant claim submitted for the period from September to November.
The two-and-a-half-year grant was valued at 857,000 and could lead to further projects.
"2025 has been a year of strong progress for Strip Tinning, characterised by significant cash constraints but still delivering operational improvements and launch readiness across our battery technologies and glazing connectors divisions," said chief executive Mark Perrins.
"We move into 2026 with confidence, bolstered by our strong customer relationships and are looking forward to delivering on the three projects which we have worked on for more than two years."
The company said it expected to publish its full-year results in April.
At 1202 GMT, shares in Strip Tinning Holdings were up 5.33% at 23.7p.
Reporting by Josh White for Sharecast.com.