Autins Group PLC Trading Update and Notice of Results (2892B)
June 06 2019 - 1:01AM
UK Regulatory
TIDMAUTG
RNS Number : 2892B
Autins Group PLC
06 June 2019
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 GBP13.66m (H1 2018: GBP15.86m), in line
with management's expectations. Within that total component
revenues were GBP13.43m, being a year on year reduction of 13.7%
(H1 18 GBP15.57m), but a 5.2% increase on H2 18 (GBP12.76m). 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 Via Newgate
Adam Attwood, Non-Executive Chairman
Gareth Kaminski-Cook, Chief Executive
James Larner, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker) Tel: 020 7496 3000
Mark Taylor / Lauren Kettle (Corporate Finance)
Mia Gardner (Corporate Broking)
Newgate Communications (Financial PR) Tel: 020 7653 9850
Adam Lloyd
Tom Carnegie
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.
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END
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