Autins Group PLC Update on Full Year Expectations and OEM Approvals (4192Q)
June 06 2018 - 1:01AM
UK Regulatory
TIDMAUTG
RNS Number : 4192Q
Autins Group PLC
06 June 2018
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6 June 2018
Autins Group plc
(the "Company" or the "Group")
Update on Full Year Expectations and
Technical Approvals with Strategic OEM Partners
Autins Group plc (AIM: AUTG), a leading designer, manufacturer
and supplier of acoustic and thermal insulation solutions for the
automotive sector is providing an update on anticipated activity
levels for the second half of the current financial year, together
with confirmation that the Group has now secured technical approval
for its Neptune materials with key strategic European OEMs.
The Board previously provided guidance that a significant
weighting to the second half of FY2018 was expected, following
strong top line growth in FY2017. Whilst we continue to grow in
FY2018, the Board now expects that the second half performance is
likely to remain broadly similar to the first, as the latest
visibility to current volumes indicates lower levels of supply
required from some of our major customers in the UK.
With regard to the Group's Neptune product, the stated strategy
has been to gain technical approval from Europe's leading
automotive OEMs in order to create a strong platform for widespread
adoption of the technology, whilst simultaneously reducing exposure
to any single manufacturer or geography. The Board is pleased to
report that approval has been gained from all the major targeted
strategic OEMs across Germany, UK, and Sweden, giving significant
scope for adoption among the numerous respective constituent brands
and tiers, enabling Autins to bid for work on new and existing
model platforms.
We have already seen some success in being awarded initial
specific parts for future year models in each of these countries,
however, given the long lead times within the automotive sector,
the Board does not anticipate substantial immediate uplift in order
volumes. The opportunity to quote for new and current platforms in
the coming months will, if successful, significantly broaden the
existing customer base.
Further investment has been made in the UK operations to ensure
our capacity and capability aligns with our strategic growth
prospects, however changes in customer schedules affecting product
mix and production efficiencies, as well as significant competitive
pressures with regards to existing work and new platform launches,
have resulted in short-term margin erosion.
As a result of the combination of factors referred to above, the
Board expects the Group to report solid year on year top-line
growth but FY2018 revenues will be behind market expectations and
profitability will be significantly below market expectations.
Adam Attwood, Non-Executive Chairman, commented:
"The investments made in the past year have enabled us to make
good progress to ensure we can deliver sustainable growth. We have
built a strong pipeline of quoted opportunities whilst winning good
business for future year models across major targeted OEMs. This
diversification across UK and Europe underpins our strategy and
positions us for a bright future. However, before this new business
can come into live production, we have near-term challenges with
lower demand in the UK constraining our current financial
performance."
The Board is currently finalising the evaluation of the impact
on the year to 30 September 2018 and will provide guidance at the
time of the publication of the interim results for the six months
ended 31 March 2018 on Wednesday 13 June 2018.
For further information please contact:
Autins Group plc Via Newgate
Adam Attwood, Non-Executive
Chairman
Michael Jennings, Chief Executive
James Larner, CFO
Cantor Fitzgerald Europe Tel: 020 7894 7000
(Nominated Adviser and Broker)
Philip Davies
Will Goode
Newgate Communications Tel: 020 7653 9850
(Financial PR)
Adam Lloyd
James Browne
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 over two million parts per month to customers including
some of the world's leading vehicle manufacturers.
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END
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