Autins Group plc (AIM: AUTG), a leading designer, manufacturer and supplier of acoustic and thermal insulation solutions for the automotive sector, announces its results for the six months ended 31 March 2019.
- Revenue decreased by 13.8% to £13.66m (H1 18: £15.86m)
- Gross profit decreased by 15.3% to £3.62m (H1 18: £4.27m)
- Gross margins down to 26.5% (H1 18: 26.9%)
- Adjusted EBITDA1 loss of £0.16m (H1 18: Profit of £0.60m)
- Adjusted Loss Before Tax1,2 of £0.55m (H1 18: Profit of £0.41m)
- Loss After Tax of £0.98m (H1 18: Profit of £0.05m)
- Loss per Share of 4.42p (H1 18: Earnings of 0.22p)
- Net debt3 of £4.66m (FY18: Net debt £4.22m)
- Interim dividend of £nil per share (H1 18: 0.4p per share)
1: Adjusted EBITDA in H1 18 excluded non recurring start up Neptune costs of £0.24m and H1 19 includes £0.31m (H1 18: £nil) related to restructuring of overhead costs and bank facilities
2: Adjusted LBT further excludes £0.12m (H1 18: £0.12m) amortisation of intangible costs
3. Cash less bank overdrafts, invoice discounting and hire purchase finance.
- Sales of Neptune components and the quotation pipeline increased significantly in the period
- Neptune product adoption has continued with a European OEM specifying the material for global sourcing and inclusion by a German OEM on prototypes for its next generation electric vehicles
- Neptune business wins now include 12 OEM brands, 33 vehicle models, and over 200 different automotive parts
- Continued growth in Germany and for Neptune in all territories
- Research and product development programmes continue to progress with first product and third-party testing services sales achieved
- Overhead cost reduction programme completed in full with progress on operational cost focus areas: labour efficiency, material usage, waste and packaging
Post Period End
- Extended shutdowns and reduced schedules from key OEMs and customers in UK
- Impacts of unwind of Brexit preparedness by UK OEMs and their key Tiers
- Secured significant additional work on replacement vehicles for 2020 as well as continuing to pursue new vehicle work with new OEMs as part of the overall growth and diversification strategy
Gareth Kaminski-Cook, Chief Executive, said:
“The Group, and the automotive industry generally, is continuing to experience challenging trading conditions due to a combination of factors, including OEM factory shutdowns due to Brexit, uncertainty over the future of diesel engine vehicles and a sharp decline in global demand, especially in China.
Despite this market backdrop, the Group continues to see positive momentum in its business and while further recovery is required to return to H1 18 levels, H1 19 has seen an improvement on H2 18. The Board is pleased with sales growth in Germany of 44% compared to the prior year and the continued strong growth of Neptune product sales.
Operational efficiencies and cost mitigation measures remain a key priority for the financial year and beyond, and the Board expects to see continued improvement in margin progression, supported by a broader customer base and further diversification of Group revenues.“