Profits jump at Autins despite softer revenues

(Sharecast News) - Autins Group confirmed on Tuesday it had swung back into the black for the first time in nearly a decade, boosted by a clutch of new contracts and an improved margin.

Revenues at the insulation manufacturer fell to £17.6m from £19.3m in the 12 months to 31 March, in large part due to the cyber attack on Jaguar Land Rover, Autins' biggest UK customer. The attack last autumn halted JLR's British production line for several weeks, hitting car sales but also weighing heavily on the company's extensive supply chain.

However, net profits came in at £0.17m, up from last year's £1.2m loss. It is the first time the AIM-listed business has returned to net profit since 2017. Earnings before interest, tax, depreciation and amortisation spiked 71% to £2.4m.

Autins said the results reflected the ongoing success of its so-called survive and thrive strategy, which had driven "meaningful" margin expansion alongside operational improvements across the UK, German and Swedish businesses. The gross margin now stands at 36.4%, a 430 basis point increase.

It also flagged "significant" new contract wins during the period, including £12m in the UK, though Autins acknowledged that the European automotive sector remained subject to "macroeconomic and geopolitical volatility".

Andy Bloomer, chief executive, said: "We're well positioned, with good visibility on future revenues as new contracts come through, and we remain focused on delivering sustainable value over the medium term.

"Despite the existing and new headwinds in the automotive industry and wider economic climate, the outlook for Autins is positive."

As at 1100 BST and the stock had reversed earlier gains to fall 6% at 8p.

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Autins Group