Strip Tinning Holdings PLC - Birmingham-based electrical connectors for automotive sector - Says its wholly owned subsidiary Strip Tinning Ltd turns to loss in 2021 as costs rise due to inflation and supply chain disruption. Pretax loss stands at £1.1 million versus a profit of £349,000 in 2020. Cost of sales increase to £7.9 million from £5.0 million. Administrative costs widen to £4.2 million from £3.2 million. The revenue increase to £11.2 million from £8.6 million is not enough to stay profitable in 2021.
‘Uncertainty in the global and UK economies has persisted into 2022. The European car market, which accounted for 57% of group sales in 2021, has softened considerably with passenger car registrations declining 21% in April 2022 compared to the same period in 2021,’ Chief Executive Officer Richard Barton says.
‘Supply chain disruptions have been heightened by Russia’s invasion of Ukraine, which has worsened the shortage of semiconductors and wiring harnesses, and recent Covid-19 related lockdowns in Shanghai have all negatively affected car production, with a number of original equipment manufacturer plants halting production. These uncertainties are likely to continue in the near term and will continue to impact the glazing business,’ Strip Tinning explains.
Current stock price: 95.75 pence, unchanged on Tuesday
12-month change: down 48%
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