LONDON (ShareCast) - (Sharecast News) - Automotive interior components supplier CT Automotive announced on Friday that it had secured a new $20m working capital facility with FGI Worldwide, extending its debt agreement to October 2027.
The AIM-traded firm said the new asset-backed facility was designed to provide greater financial flexibility to support its global operations, particularly its planned revenue growth in Mexico.

It said the borrowing rate under the new facility remained comparable to the prior agreement, with customary asset-based lending covenants in place.

As of 30 June, CT Automotive had a net debt position of $5.8m pre-IFRS 16.

"As we outlined in our interim results announcement and investor presentations last month, we are very excited by the growth opportunities in front of us," said chief executive officer Simon Phillips.

"A number of new manufacturing programmes have started in 2024 and will ramp up in 2025 and there are new programmes commencing next year that will ramp up in 2026.

"This gives us good visibility over the step changes coming in revenue growth for the next two years."

Phillips added that contracts won in 2024 combined with a pipeline of new requests for quotations that had "rarely been stronger", giving the firm confidence in further increases beyond 2026.

"The new facility is therefore key and will provide total funding of up to $20m, enhancing our operational flexibility, supporting our planned revenue growth, and in particular funding new programmes in Mexico where we see a significant opportunity as US auto companies seek to bring manufacturing back closer to home."

At 1345 BST, shares in CT Automotive Group were up 1.79% at 57p.

Reporting by Josh White for Sharecast.com.

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