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CT Automotive to Miss Profit Guidance as Accounting Errors Trigger FY24 Restatement

Story Highlights
  • CT Automotive expects FY25 revenue in line with guidance but slightly lower adjusted profit after contract pricing and lease accounting issues.
  • The group will restate FY24 results after non-cash accounting misstatements, cutting profit and net assets while tightening financial controls and oversight.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
CT Automotive to Miss Profit Guidance as Accounting Errors Trigger FY24 Restatement

Meet Samuel – Your Personal Investing Prophet

The latest announcement is out from CT Automotive Group Plc ( (GB:CTA) ).

CT Automotive Group said it expects to report 2025 revenues of $114.8 million and year-end net debt of $7.7 million, in line with earlier indications, but now forecasts adjusted profit before tax of $9.5 million, slightly below prior guidance due to a pricing overstatement on a UK contract and revised lease accounting calculations in China. During preparation of its 2025 accounts, the company uncovered prior period accounting misstatements that will lead to non-cash restatements of 2024 results, reducing adjusted profit before tax for that year to $7.9 million and net assets to $21.2 million, and has brought in a new auditor and additional controls to address the issues and reassure stakeholders over its financial reporting quality.

Spark’s Take on CTA Stock

According to Spark, TipRanks’ AI Analyst, CTA is a Neutral.

The score is driven mainly by mixed but improving financial performance (better margins, manageable leverage, solid operating cash generation) and a very low P/E that indicates cheap valuation. These positives are meaningfully tempered by weak technicals, with the price below all major moving averages and very oversold momentum readings.

To see Spark’s full report on CTA stock, click here.

More about CT Automotive Group Plc

CT Automotive Group is a UK-headquartered designer, developer and manufacturer of bespoke automotive interior finishes and kinematic assemblies for global original equipment manufacturers and Tier One suppliers. With low-cost manufacturing hubs in China, Mexico and Türkiye and engineering and distribution operations across Europe, Asia, the US and India, the company pursues a price-leadership strategy to supply high-quality parts at lower landed cost to mass-market and premium car brands, including Nissan, Ford, GM, Volkswagen Audi Group, Bentley, Lamborghini and several EV makers.

Average Trading Volume: 125,544

Technical Sentiment Signal: Sell

Current Market Cap: £18.03M

For a thorough assessment of CTA stock, go to TipRanks’ Stock Analysis page.

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