CT Automotive Group PLC (AIM:CTA) shares climbed 13% in early deals after the Hampshire-based bespoke vehicle interiors firm told investors it expects to meet market forecasts for full-year revenue and profit.
The company highlighted that it is benefiting from the ramp-up of its operations in Mexico, where it is now making new investments.
Meanwhile, it said stalled first half revenues, resulting from customer timing changes and inventory run-down amidst recent macro uncertainties (namely, tariffs), will normalise in the second half of the year.
First-half revenue is set to come in at $54.2 million, from $60.5 million a year earlier.
CT noted that it had secured eight new contracts worth about $37 million a year during the first half, with four due to start in late 2025 or early 2026 as customers relocate manufacturing to its Mexico facility to take advantage of USMCA certification.
The other four will start in 2027 and early 2028.
To support growth in Mexico, CT Automotive is investing $3.4 million this year in an automated paint line and 15 new injection moulding machines.
Full year forecasts for 2025 envisage revenue of $122 million and adjusted profit before tax of $10.5 million.
“CT Automotive continues to successfully navigate a challenging automotive market environment,” the company said in a statement.
“While tariffs have introduced significant uncertainty across the industry, they have also presented opportunities.
“The success of our Mexico facility in securing new contracts transferring from existing customer programmes reflects this, and highlights the growing appeal of this location.”
In London, CT Automotive shares were up 13% on Wednesday, changing hands at 37.3p.