Autins Group PLC Trading and COVID-19 Update (9398H)
March 30 2020 - 1:00AM
UK Regulatory
TIDMAUTG
RNS Number : 9398H
Autins Group PLC
30 March 2020
30(th) March 2020
Autins Group plc
(the "Company" or the "Group")
Trading and COVID-19 Update
Autins Group plc (AIM: AUTG), a leading designer, manufacturer
and supplier of acoustic and thermal insulation solutions for the
automotive sector, is pleased to confirm that the operating
performance of the Group in the first five months of the financial
year until the end of February 2020 has been ahead of management
expectations and much improved compared to the same period last
year. This has been driven by significant improvements in
operational efficiencies and better overhead cost control. All
three operating countries have been EBITDA positive and the company
continues to win significant new business.
However, the recent escalation in the COVID-19 virus crisis has
led to plant shutdowns across the European automotive sector,
including PSA, Volkswagen, Fiat, BMW and JLR. As a result, the
Board anticipates significantly reduced demand for its products for
the foreseeable future. Accordingly, the Board has already taken
proactive action in all our facilities. These mitigating actions
include a reduction in staff overheads, reducing employee working
hours and addressing operating costs to preserve cash and manage
working capital. In line with government guidance, we have
facilitated appropriate home working and other protective measures.
We have furloughed most of our employees and significantly reduced
the operating capacity of our manufacturing facilities in line with
the anticipated reduction in demand. We will serve existing demand
and, where it makes business sense, respond to enquiries and manage
important on-going projects. The Group management team continues to
maintain contact with all customers to ensure that Autins is
prepared to meet, as adequately as possible, expected changes in
demand.
The health and safety of all our employees will remain of
paramount importance.
We are encouraged by the financial measures recently announced
by the UK Government and will actively pursue all avenues in order
to support and protect the Group and our employees. We have already
engaged with our principal bank and applied for CBILS funding. We
would expect the outcome of that application within the coming
weeks.
We are also applying for similar government support schemes for
our businesses in Germany and Sweden.
Whilst we have taken all immediately available mitigating
actions, the Board is also mindful that further initiatives may be
necessary to respond to the current open-ended nature of the
crisis.
The impact of the COVID-19 virus is unprecedented and it is
difficult for the Board to assess accurately the impact on the
Group's trading and financial performance at this time but would
expect a material reduction to the Group's financial performance
and outturn for FY2020.
Notwithstanding the impact of COVID-19, the Board remains
confident in the strength of Autins' product offerings and believes
the steps taken over the past 18 months to deliver operational
improvement and sales growth, coupled with new market development,
mean that the Group is better placed to withstand this anticipated
temporary reduction in demand and return to profitable growth.
The Company expects to announce its interim results in June
2020, at which time a further update will be provided.
Autins Group plc Via Newgate
Adam Attwood, Non-Executive
Chairman
Gareth Kaminski-Cook, Chief
Executive
Kamran Munir, Chief Financial
Officer
N+1 Singer Tel: 020 7496 3000
(Nominated Adviser and Broker)
Mark Taylor / Lauren Kettle
(Corporate Finance)
Newgate Communications Tel: 020 7653 9850
(Financial PR)
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 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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