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Highlights:
- $20M Working Capital Facility: CT Automotive secured a $20 million facility from FGI Worldwide to extend debt agreements to 2027 and support growth.
- Mexico Expansion: The new facility will primarily fund the company’s manufacturing growth in Mexico, as US auto firms shift production closer to home.
- Strong Growth Pipeline: CT Automotive anticipates ramped-up revenue growth in 2025 and 2026 from newly launched and upcoming manufacturing programmes.
CT Automotive, a supplier of automotive interior components, announced on Friday the successful arrangement of a new $20 million working capital facility with FGI Worldwide. The facility, which extends the company’s debt agreement until October 2027, aims to provide increased financial flexibility, particularly as the firm prepares for significant growth in its operations in Mexico.
This new asset-backed facility maintains borrowing rates similar to the previous agreement, with customary asset-based lending covenants. As of 30 June, CT Automotive held a net debt position of $5.8 million, pre-IFRS 16 adjustments. The AIM-traded company plans to use the facility to support its expanding operations and to fund new manufacturing programmes in Mexico, which are expected to ramp up significantly over the next two years.
Simon Phillips, Chief Executive Officer of CT Automotive, expressed optimism about the company's future growth trajectory. He highlighted that several new manufacturing initiatives have already begun in 2024, with more expected to commence in 2025 and 2026. This positions the company for steady revenue growth over the next two years, with additional opportunities for expansion beyond 2026 as new contracts and requests for quotations continue to increase.
Phillips emphasized that the new facility will provide essential funding to drive operations, particularly in Mexico, where the firm sees significant potential as US auto manufacturers seek to bring production closer to home. The company believes this development will enhance operational flexibility and support the execution of its ambitious growth strategy.
At 1345 BST, shares in CT Automotive Group rose by 1.79%, trading at 57p, reflecting positive market sentiment following the announcement.
