Last checked at 6 Jun 2019 07:00
6 June 2019
Autins Group plc
(the "Company" or the "Group")
Trading Update and Notice of Results
Autins Group plc (AIM: AUTG), a leading designer, manufacturer and supplier of acoustic and thermal insulation solutions for the automotive sector, provides the following update for the six months to 31 March 2019.
The Group, and the automotive industry generally, is continuing to experience challenging trading conditions from 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 has continued 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.
Trading in the first six months of the current year saw the Group achieve revenue of £13.66m (H1 2018: £15.86m), in line with management's expectations. Within that total component revenues were £13.43m, being a year on year reduction of 13.7% (H1 18 £15.57m), but a 5.2% increase on H2 18 (£12.76m). The Group's gross margin was down slightly at 26.5% (H1 18: 26.9%) but saw a significant improvement on H2 18 (22.2%) and was also ahead of FY 18 (24.8%) as a whole. Sales in Germany were up 44% compared to the prior year period and Neptune product sales also continue to deliver strong growth.
The challenging trading conditions affecting the automotive industry first impacted the Group in H2 2018, prompting a renewed focus by the Board on cost control and sales conversion. Operational effectiveness remains a key priority for the current year; however, the Group has seen disruption to its planned improvements in the period. Volatility in demand from its major customers and an unprecedented number of plant shutdowns by OEMs as they planned for the UK's departure from the European Union (prior to its ultimate delay) means that Autins has not yet seen the full benefit from its cost control measures. In addition, the Group experienced an equipment breakdown in its German division in the period causing increased production costs, which has since been rectified.
Since the period end Brexit disruption has continued. There has been a clear "destocking" within the sector following the passing of the assumed Brexit date of 29 March which has impacted the Group's order visibility from its customers and trading results in April and May.
The Board anticipates that margins will increase at a slower pace in H2 than initially anticipated due to the challenging market conditions, despite the actions taken by the Group in the year to date which, coupled with the delay in margin recovery seen in H1 2019 will impact the Group's profitability for the full year. Although full-year revenues are expected to be broadly in line with market expectations, the Board anticipates that the Group's EBITDA, as a result of the delay in margin recovery, will be close to break-even for the full year.
Autins will remain focused on cost mitigation measures for the remainder of the financial year and beyond and expects to see continued improvement in margin progression, supported by a broader customer base and further diversification of Group revenues.
Notice of Results
Autins will publish results for the six months ended 31 March 2019 on Wednesday 26 June 2019.
The management team will be hosting a presentation for analysts on the day of results at 9:30am at the offices of Newgate Communications, Sky Light City Tower, 50 Basinghall Street, London, EC2V 5DE
For further information please contact:
Autins Group plc Adam Attwood, Non-Executive Chairman Gareth Kaminski-Cook, Chief Executive James Larner, Chief Financial Officer
| Via Newgate |
N+1 Singer (Nominated Adviser and Broker) Mark Taylor / Lauren Kettle (Corporate Finance) Mia Gardner (Corporate Broking)
| Tel: 020 7496 3000 |
Newgate Communications (Financial PR) Adam Lloyd Tom Carnegie
| Tel: 020 7653 9850
|
About Autins
Autins specialises in the design, manufacture and supply of acoustic and thermal insulation solutions primarily in the automotive sector but with an increasing focus on other sectors, including, flooring, building and wider industrial applications.
The Group is one of the leading suppliers of noise and heat management products in the automotive market, producing and supplying a broad range of support to some of the world's leading vehicle manufacturers.