Strip Tinning Holdings PLC on Tuesday reported lower sales compared to 2021, due to the impact of Ukraine war.

Shares were down 11% at 58.00 pence each on Tuesday afternoon in London.

The Birmingham-based electrical connectors provider for automotive sector said the market forecasts for revenue is £10.4 million. In 2021, revenue was £11.1 million.

It expects underlying loss before interest, tax, depreciation and amortisation to be £2.2 million, compared to market estimates of £2.1 million. In 2021, earnings before interest, tax, depreciation and amortisation amounted to £500,000.

The company said performance during the year has been improving steadily, with sales in the second half of the year recovering significantly from the first half low.

However, it noted that sales remained below the 2021 level as a result of the ongoing impact of the war in the Ukraine and supply shortages reducing automotive vehicle production worldwide.

Strip Tinning said underlying gross margins improved in the second half due to ‘pricing and improved operational control, despite significant inflationary cost pressures on energy, materials and labour.’

Looking ahead, the company said it believes that material progress has been made in 2022 which will ‘bear fruit in the medium term’.

It expects a return to Ebitda breakeven in 2023, despite the challenging macroeconomic outlook.

Chief Executive Officer Richard Barton said: ‘Although we have been hampered by unfavourable market conditions, it has been a transitional year for Strip Tinning in which we have carefully managed resources and built a foundation for a return to growth moving forwards, typified by our steadily improved revenues in the second half of the year. We remain well-positioned to benefit from the fast-growing EV sector, as well as a reputable, long-term supplier in the glazing market.’

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