TIDMAUTG
RNS Number : 2316M
Autins Group PLC
20 January 2021
20 January 2021
Autins Group plc
(the "Company" or the "Group")
Full Year Results
Autins Group plc (AIM: AUTG), the UK and European manufacturer
of the patented Neptune melt-blown material and specialist in the
design, manufacture and supply of acoustic and thermal insulation
solutions, announces its results for the twelve months ended 30
September 2020.
Financial Overview
-- Revenue decreased to GBP21.5 million (FY 19: GBP26.9 million)
-- Adjusted Gross Profit(1) decreased to GBP6.0 million (FY 19: GBP7.5 million)
-- Reported EBITDA(1) increased to GBP1.1 million (FY 19: EBITDA GBP0.0 million)
-- Cash flow from Operations(2) increased to GBP1.5 million (FY19: loss of GBP1.0 million)
-- Operating Loss reduced to GBP1.3 million (FY 19: loss of GBP1.6 million)
-- Adjusted Operating Loss(3) GBP0.6 million (FY 19: loss of GBP0.8 million)
-- Reported Loss after tax GBP1.7 million (FY 19: loss of GBP1.5 million)
-- Reported Loss per share reduced to 4.35p (FY 19: loss of 6.25p)
-- Adjusted net debt(4) reduced to GBP1.9 million (FY 19: GBP2.3 million)
Operational Highlights
-- H2 revenues having been impacted by the pandemic were GBP7.8
million (H120 GBP13.2 million) but H2 reported EBITDA improved to
GBP0.83 million (H120 GBP0.27 million) and recurring overheads were
reduced by GBP1.0 million.
-- Gross profit (1) margins remained steady at 28.0% (FY 19: 27.9%).
-- Positive reported operating cash inflow of GBP1.5 million
(FY19 outflow GBP1.0 million) of which GBP0.9 million resulted from
improved working capital.
-- GBP3.3 million of new finance facilities secured, including
GBP2.75 million under UK CBILS and EUR0.3 million in Germany under
a similar scheme, and GBP0.3 million trade purchases loan
facility.
-- Additional GBP1.5 million loan secured with Midlands Engine Investment Fund (MEIF)
-- Neptune pipeline remained strong at GBP35 million with GBP8.0
million of Neptune parts already in production and additional new
orders won, but not yet in production.
-- PPE products were a feature in H2, generating GBP1.2 million revenues in H2.
-- Germany continued to win new business in automotive and
flooring. Revenues increased to GBP4.6 million (FY19 GBP4.3
million) with EBITDA strongly ahead at GBP0.4 million (FY19 GBP0.1
million).
1: Adjusted Gross Profit excludes GBP0.2 million exceptional
inventory impairment and a further GBP0.3 million of Exceptional
restructuring costs are excluded from EBITDA (FY19: GBP0.4
million). The adoption of IFRS16 in FY20 has improved EBITDA by
GBP1.0 million.
2: The adoption of IFRS16 has improved the reported Cash from
Operations by GBP0.76 million.
3: Adjusted Operating Loss excludes all exceptional costs as per
note 1 above, and amortisation relating to acquired intangible
assets recognised as a result of the Group's conversion to IFRS at
IPO of GBP0.2 million in both years.
4: Net debt is cash less bank overdrafts, invoice discounting,
hire purchase finance and excluding IFRS16 calculated lease
liabilities.
Gareth Kaminski-Cook, Chief Executive, said:
"Despite the unprecedented challenges faced this year we have
still delivered on many of the performance targets we set ourselves
a year ago. Although our financial performance has been impacted by
these challenges, this really was a year of two halves: with H1
trending on track to meet our full year expectations in the core
auto business; and H2 proving that Autins has the agility to adapt
to sudden changes in the macro-economy and rapidly make significant
operational and financial adjustments which included securing
government support funds.
"The strategy, therefore, does not change. We will leverage
Neptune to win market share in automotive, leverage our acoustic
and thermal expertise to accelerate growth in non-auto markets and
drive down our operational costs."
For further information please contact:
Autins Group plc
Gareth Kaminski-Cook, Chief Executive Via SEC Newgate
Kamran Munir, CFO
N+1 Singer Advisory LLP Tel: 020 7496 3000
(Nominated Adviser and Broker)
Mark Taylor / Carlo Spingardi
SEC Newgate Tel: 020 7653 9850
(Financial PR)
Adam Lloyd
Tom Carnegie
About Autins
Autins is a UK and continental Europe based industrial materials
technology business that specialises in the design, manufacture,
and supply of acoustic and thermal products. Its key markets are
automotive, flooring, office furniture and commercial vehicles
where it supplies products and services to more than 160 customer
locations across Europe.
Autins is also the sole European manufacturer of the patented
Neptune material. Neptune is a lightweight, high-performance
acoustic material which offers superior acoustic and thermal
properties. It is suitable for a range of applications where
acoustic absorption is required. This market-leading product is
manufactured in the UK.
Chairman's Statement
"I am proud of the leadership and business agility that the
Group has shown to navigate through the past few months. From a low
point in April, when there were widespread plant shutdowns
throughout our core customer base, we have seen recovering sales
demand in the final quarter."
Our Key Strengths
-- Specialist market applications;
-- Market-leading performance materials;
-- Increasing OEM & Tier approvals;
-- Established European manufacturing and technical support;
-- Proven expertise in NVH consultancy;
-- Focused NVH specialist supplier; and
-- Acoustic and thermal problem solver.
People
2020 has been unprecedented. The global Covid-19 pandemic has
significantly affected all geographies of our operations in a way
that was unimaginable as we began the financial year. I must begin
this review with a sincere "thank you" to all Autins' staff who
have collectively reacted so well to events and helped to mitigate
the consequences of the pandemic on the business. Our staff have
shown critical, key qualities in the past few months. I have seen
decisive leadership across the Group, enhanced communication
(despite workspace restrictions), a willingness to adapt to change
and great resilience (especially from our many staff who had the
uncertainty of being on furlough). Adversity shines a spotlight on
the true calibre of an organisation. I am truly grateful to all our
staff for their understanding, co-operation, support, patience and
ingenuity over the past months. We have a great team at Autins and
that bodes well for our future!
In January 2020, we welcomed Kamran Munir to the Group as Chief
Financial Officer. Kamran has provided additional expertise at cost
control and operational financial management. He has already proved
to be a valuable addition to the executive team, ensuring
heightened financial discipline and securing additional liquidity
during the year.
In light of market conditions, the Board unanimously agreed to
take a 20% reduction in salary for the second half of the year both
to conserve cash and to align itself with our wider workforce. At
the peak, we had over 90% of employees across the Group on
furlough.
Financial performance
Group sales for the year were GBP21.5million, 20% down on FY19.
This was the result of extended and unforeseen shutdowns at the
production plants of our key OEM automotive customers from the end
of March, as a consequence of the global Covid pandemic. However,
sales did start to recover in the final quarter of the year,
although they remained below pre-Covid expectations.
Our German subsidiary continued to gather momentum during the
period with overall sales of GBP4.6 million (2019: GBP4.3 million).
This represents a very strong performance in light of the market
conditions exceeding prior year for both revenue and EBITDA.
Our focus on operational and working capital improvement
continued throughout the period in difficult circumstances. This
was evidenced by our adjusted gross margin remaining consistent at
28.0% (FY19: 27.9%) despite lower volumes and a disrupted operating
pattern. This resulted in reported EBITDA of GBP1.1 million (2019
GBPnil), primarily reflecting the impact of the adoption of IFRS
16, and enabled the Group to report GBP1.5 million of operating
cash inflow for the year.
The operating loss for the Group was GBP1.3 million for the year
(FY19: loss GBP1.6 million).
The Board has continued to focus on increasing the Group's
liquidity and cash balances during the year. In January, we agreed
a GBP1.5 million Midlands Engine Investment Fund loan which has
been fully drawn down. In addition, by July, the Group secured
CBILS (or other territory equivalents) loans of GBP3.0 million.
These loans have significantly improved the Group's liquidity and
working capital position.
Strategy
Despite the uncertainty created from the Covid pandemic, our
overall strategy remains intact. We remain committed to becoming a
leading noise, vibration and harshness ('NVH') specialist to
European automotive markets, focusing on the new NVH challenges
arising from the move to electric and hybrid vehicles. Our
proprietary Neptune, melt-blown material continues to provide
opportunities to supply new customers due to its specific acoustic
and thermal performance and its lighter weight. In the year, we
have increased the number of Neptune material and component
customers by 45% to 42, with 27 in UK, 11 in Germany and 4 in
Sweden.
We also continue to focus on diversifying our NVH expertise to
non-automotive markets. We were successful in the year in securing
supply of our flooring products to Unilin and IVC, subsidiaries of
the world's largest manufacturer, Mohawk. Our initiatives to
accelerate non-automotive sales were interrupted by market
conditions in the mid-part of the year, but increased in momentum
towards the end of the year.
We have reviewed our Environmental, Social and Governance
framework during the year and are committed to the strategic
importance of continuous improvement in these areas. We have
introduced further effective measurement to challenge ourselves to
minimise the environmental impact of our business.
Corporate governance
The Board is committed to robust corporate governance and risk
management to ensure the delivery of our strategic ambitions and
the financial health of the Group. We apply the Quoted Companies
Alliance Corporate Governance Code (the 'QCA Code').
The Board undertook an annual review of performance in
September. This was a useful exercise to understand how the Board
can further develop as a team and highlight areas of governance
that can be improved to assist the Group to manage its risks and
adapt to change.
Dividend
In light of the impact that the Covid pandemic has had on this
year's performance, no final dividend is proposed.
The Board will continue to monitor net earnings, gearing levels
and expected capital requirements with a view to reinstating its
progressive dividend policy at the appropriate time.
Outlook
The Group will continue to focus on operational improvement,
cash conservation, sales growth and diversification of customers
and markets. Notwithstanding the ongoing uncertainty surrounding
Covid, the Group has improved its liquidity position and the Board
anticipates recovery in sales volumes and profitability for the
Group from FY20 levels, due to the full year effect of new customer
wins and continued strategic progression and a reduced negative
impact from the Covid pandemic. However, there remains a heightened
level of forward-looking risk until there is more certainty of the
impact of the ongoing effects of the Covid pandemic, with scope for
further lockdowns, and the transitional effects of the recently
announced Brexit deal.
Given the continued uncertainty relating to the impact of the
ongoing COVID pandemic on the automotive sector at the current
time, the Board considers that it is prudent to continue the
suspension of guidance to the market.
Adam Attwood
Chairman
Chief Executive Officer's Review
Our materials and solutions contribute to a quieter, safer,
cleaner and more energy-efficient world.
Autins is an industry-leading designer, manufacturer, and
supplier of acoustic and thermal management solutions. We apply our
expertise in material technologies to solve complex and challenging
problems to create better and more comfortable environments in a
wide range of industry applications including automotive, flooring,
office furniture and commercial vehicles. We manufacture a range of
technical materials, including our own patented material, Neptune,
in our facilities in the UK, Germany and Sweden, making us a truly
European business.
Despite the unprecedented challenges faced this year we have
still delivered on many of the performance targets we set ourselves
a year ago. Although our financial performance has been impacted by
these challenges, this really was a year of two halves: with H1
trending on track to meet our full year expectations in the core
automotive business; and H2 proving that Autins has the agility to
adapt to sudden changes in its business model and macro-economic
circumstances requiring significant operational and financial
adjustments, as well as securing government support funds. We
continue to win new Neptune business showing it is a winning
technology. This all bodes well for 2021.
First half 2020
Last year I wrote that management would focus on three areas:
margin improvement, growing the customer base and leveraging our
unique Neptune technology to expand the business.
In December 2019, I was pleased to announce the appointment of
Kamran Munir as Group CFO. By the half year Kamran's impact was
already being felt, with operational efficiency improvements
consistently delivering a gross margin above 30% and management
actions to further reduce overheads flowing through to the bottom
line. In the half year we successfully secured contracts with new
customers across a number of important target industries including
automotive, commercial vehicles and office pods and our Neptune
revenues increased by GBP1.6 million to GBP6.5 million on an
annualised run rate, based on respective customer expectations.
Second half year 2020
The second half of the year was dominated by the Coronavirus
pandemic. The impact on the business was immediate with sales to
automotive clients coming to an abrupt halt following the
widespread shut down of car plants for the period from the end of
March until early July. Despite the majority of our staff, more
than 90% at the high point, being furloughed throughout this
period, the Covid pandemic has had a large negative financial
impact caused by estimated lost revenue of approximately GBP7.0
million against internal forecasts.
Autins responded quickly to protect cash and pivoted the
business to develop new solutions; in particular, the development
and production of face masks using our Neptune melt-blown
technology and the production of foam components for face visors.
Sales of the Autins' face mask grew rapidly during the summer PPE
shortage, peaking in June. Autins was also selected to supply cut
foam parts to a visor manufacturer as part of an NHS-contract. We
began supplying within 1 week of the enquiry and subsequently
supplied over 7 million parts.
We are proud of how we rapidly leveraged Autins' skills and
equipment to supply essential PPE during a global crisis and
generated a new stream of cash into the business. However, this is
a highly competitive market with an entrenched existing supply
chain and therefore we anticipate that PPE will only provide very
limited ongoing sales opportunities for the Group.
Automotive production recovered from July onwards. By year end,
the UK and Sweden were approximately 70% of pre-Covid levels,
whilst Germany was above 85%. Following a review of staffing
requirements, the Company implemented a restructuring process in
August resulting in a headcount reduction of approximately 10%.
We have secured government-backed financial support in the UK,
Germany and Sweden, which has given the Group the funding it needs
to protect the business whilst its core markets recover.
All these actions were testament to the good leadership, agility
and creativity throughout the Company and confirms the versatility
of Neptune in new markets. With this in mind, we have since
recruited a New Business Development Manager for the UK, who will
bring focus and expertise to sustain and accelerate our growth into
new markets and new industry segments.
Review of the year
Oct - Dec Jan - Mar
H1
* Nine new auto contracts won * Cash management improved. Stock and debtors > GBP1
million.
* Kamran Munir appointed CFO on 1 January 2020.
* Secured GBP1.5 million of long-term Midlands Engine
Investment Fund ('MEIF') funding to support growth
* Operational cost and efficiency improvement targets and working capital.
of GBP2 million p.a. 85% achieved.
* Net debt kept consistent, with trade creditors back
* GBP0.5 million Q2 20 vs Q1 20 EBITDA improvement. to terms.
* Gross margins improved by 3.8% to 30.9%. * Plants shutdown 24 March.
-------------------------------------------------------------- ------------------------------------------------------------
Apr - Jun Jul - Sep
-------------------------------------------------------------- ------------------------------------------------------------
H2
* c.90% of staff furloughed as UK auto demand reduced * CBILS awarded and received beginning July.
due to key customer shutdowns.
* Flooring contract win of GBP1.2 million to Mohawk
* Mask production starts April (30k per week at peak in Group August.
June).
* Begin supply to Mini (BMW Group) in September.
* Foam parts production for visors starts June (800k
per week).
-------------------------------------------------------------- ------------------------------------------------------------
During the summer, our German business won its biggest ever
flooring Decibex contract, to supply into the world's largest
flooring manufacturer, Mohawk Group. In Sweden, via our tier
partners we were awarded work with truck manufacturer Scania - and
with Volvo for their new Polestar and XC90 models. In the UK we
were awarded the contract to supply Grupo Antolin with Neptune
products for the Mini, part of the BMW Group, and have since
started making and delivering these parts for running
production.
The German business managed to surpass all its original budget
targets for the year, with new contracts for Neptune, and in
flooring with the Decibex product range, more than offsetting the
market declines in automotive.
This year we are reporting more fully on our approach and
performance regarding ESG (Environment, Social and Governance). We
are an international business operating in the global community and
will take our responsibility to be a good corporate citizen
seriously.
In a year that has tested the agility and resilience of
leadership, Autins has shown that it can adapt quickly to protect
cash and find new sources of revenue. Whilst Covid continues to
create uncertainty, the announcement of the Brexit deal has helped
to ensure EU trading stability continues. Sales recovery will be
accelerated by recent wins in both the automotive and
non-automotive markets, which will drive better returns from the
improved cost structure, as volumes are able to recover.
The strategy, therefore, does not change. We will leverage
Neptune to win market share in automotive, leverage our acoustic
and thermal expertise to accelerate growth in non-auto markets and
continue to drive down our operational costs.
Gareth Kaminski-Cook
Chief Executive Officer
Financial Review
The Group's primary focus in H1 was to continue new contract
growth and simultaneously improve the cost structure by more than
GBP2 million p.a. As reported for H1, the latter was achieved
through volume related improvements in materials, labour
productivity, and reduction in overheads of GBP1.0 million
including restructuring staff positions. Underlying working capital
improvements in stocks and debtors of more than GBP1.0 million were
also realised. Significant new automotive OEM contracts continued
to be won in UK and Germany, and GBP1.5 million of long term MEIF
funding was also secured.
In H2 our diversification journey continued. Significant growth
in non-automotive applications was achieved. New PPE products
achieved GBP1.2 million of revenues and new flooring sales at a
rate of GBP1.8 million p.a. were also secured. Critical actions
were also needed to work through Covid trading conditions.
Approximately GBP1.0 million (UK GBP0.7 million) of furlough, and
overseas equivalent, income was received. Long term CBILS, and
overseas equivalent, loans of GBP3.0 million were successfully
obtained. Over the full year reported operating cash-flow for the
Group was GBP1.5 million and net debt, excluding lease liabilities
under IFRS16, was improved by GBP0.4 million.
Revenue
During H1 revenue was GBP13.2 million (H119: GBP13.6 million).
New automotive contracts were secured and significant additional
customer tooling was sold that will drive future growth. We had
additional growth in Sweden and Germany, and growth in
non-automotive markets. This was offset by a reduction in volumes
from our key customer consistent with the status of the overall
automotive market. There was a small initial adverse impact in
March 2020, as volumes started to drop in line with Covid trading
patterns from our key customers.
H2 saw significant disruption. Our key customer had substantive
shutdowns and volume reduction for the majority of the April 2020
to August 2020 period. Other key OEMs followed a similar pattern
that impacted production and sales in UK and Sweden.
The German business had less disruption with automotive
reductions being much less than UK and Sweden. With new automotive
business wins coupled with non-automotive growth in flooring
products, Germany exceeded budget and was ahead of prior year
revenues at GBP4.6 million (FY19: GBP4.3 million).
New PPE products were developed and sold in H2 20. This realised
GBP1.2 million of short term revenues in the UK at positive
margins. The new flooring business was secured at a rate of GBP1.8
million per annum. With Covid trading conditions impacting the
group, H2 revenues were GBP7 million lower than forecast at GBP8.3
million (H2 20: GBP13.1 million).
We continued with our strategy to diversify across market
sectors and reduce reliance on our key customer. Non automotive
revenues in FY20 were 14.4% of Group sales at GBP3.1 million (FY19
7.4% and GBP2.0 million). In the year, we continued winning more
OEM contracts and also had stronger non-automotive sales than
before. This will give an improved combined position as and when
OEM production volumes recover.
Gross margin
Automotive and primary business adjusted gross margins improved
to 28.0% (FY19: 27.9%). This was the net result of 3.8% growth in
margins to 30.9% as reported pre-Covid in H1 combined with the
significant reduction in volumes in H2 as a result of the Covid
pandemic. The H1 improvements were achieved through significant
improvements in materials costs, and labour productivity and cost
downs in production running categories. Materials costs
improvements in H1 include better sourcing and utilisation of
materials, but also additional use and direct sale of our own
manufactured Neptune material, which improved volume overhead
absorption for our Tamworth facility.
As reported in H1, in total these actions combined were showing
through at an improved rate of more than GBP1.0 million per annum.
In H2 further cost reductions continued, however, these were offset
by production absorption losses in our main business segments as
revenues were severely impacted as described above, by the Covid
trading environment.
There was also some small erosion from certain material price
increases and associated adverse sourcing and import duty impacts
related to materials types also used in global PPE applications
that were subject to global supply constraints. Whilst the total
value of this was less than GBP0.1 million, this still equates to a
H2 erosion of 1.2%. Margins in Germany improved from 24% to 28%
year on year, albeit growth in Germany's sales are dilutive to the
Group's total gross margin percentage. Gross margins in Sweden
improved to be above 40%, increasing from 36% in FY19.
In H2 new PPE products were sold at positive margins. This
derived primarily from our ability to further utilize our own
produced Neptune material. This gave us a "speed to market" and
associated flexibility advantage in our commercial proposition and
further improved Neptune production absorption. NHS destined PPE
component revenues were derived on a materials free issue basis
utilizing existing group equipment including that from our Swedish
facility which gave a significant marginal absorption advantage.
Combined, the PPE revenues resulted in a 1.7% full year gross
margin improvement. All of the above factors combined yielded a net
gross margin of 28.0%, being a narrow improvement over FY19.
Future improvements from automation and improved site layouts
are expected to deliver further savings during FY21. Projects to
achieve this are already in progress. Capital investment has been
budgeted and can be achieved within expected operating
cash-flows.
The Group should continue to have further success in securing
component contracts using Neptune materials, which will improve
gross margin from volume absorption. Neptune being a melt-blown and
nonwoven material was used in our PPE and non-automotive products.
Our core strategy remains to grow these volumes. In addition the
Group continues to optimise existing and future component and
materials requirements, both with existing suppliers and newly
identified ones that should help improve sourcing leverage.
EBITDA and operating profit
FY20 EBITDA was GBP1.1 million (FY19: GBP0.0 million) after
adjusting for exceptional and non-recurring costs as noted below,
with an adjusted operating loss of GBP0.6 million (FY19 loss of
GBP0.8 million) also allowing for the amortisation and impairments
relating to intangible assets described below. The reported
statutory operating loss was GBP1.4 million (FY19: GBP1.6
million).
The adjusted measures are stated after excluding items that
management consider to be a result of significant one-off events,
including the restructuring costs associated with the detailed
review of operations, following the new CFO appointment, which
included employee severance costs and the planned scrapping of
inventory to enable improved floor space utilisation and so reduce
premises costs. Exceptional costs relating to restructuring were
GBP0.3 million, and exceptional inventory impairments were GBP0.2
million. Management information used in running the Group is
measured with a focus on the underlying operational performance
and, as such, these items are excluded.
The Board acknowledge that these are alternative measures of
performance and are not GAAP (nor are they intended to be) but are
used to help illustrate underlying business performance and are
informative to users of the accounts.
FY20 EBITDA also benefits from GBP1.0 million of IFRS16
adjustments, as compared to FY19. Without the benefit of IFRS16
reporting the adjusted EBITDA would be narrowly positive at GBP0.04
million. GBP1.0 million of employment costs were met by income from
the government job retention scheme in the Covid disrupted periods,
and their overseas equivalents in Sweden and Germany.
Exceptional and adjusting items
As noted above, the Group incurred an exceptional cost of sales
of GBP0.16 million (2019: GBPnil) and exceptional administrative
costs of GBP0.29 million as a result of a change of Chief Financial
Officer (FY19: GBP0.43 million included other restructuring
changes). The former Chief Financial Officer, James Larner, left on
31 December 2019, and Kamran Munir was appointed from 1 January
2020.
To be consistent with analysts measure of the Group's
performance, amortisation of GBP0.2 million (FY19: GBP0.2 million)
in relation to acquired intangible assets recognised as a result of
the Group's conversion to IFRS at IPO (having previously being held
as non amortising Goodwill) and an impairment of previously
recognised development costs of GBP0.0 million (FY19: GBP0.1
million) have been excluded from adjusted operating profit. The
adjusted operating loss, allowing for exceptional costs and
amortisation, would be GBP0.65 million (FY19: GBP0.8 million).
Joint venture
The Group's joint venture, Indica Automotive, is an acoustic
foam conversion business based in Northampton that supplies
components into the Group's UK operations (who remain the largest
customer) as well as its own automotive customer base. The joint
venture continues to leverage the access to low cost material and
finished component sources provided by its other parent Indica
Industries PV based in India.
Indica Automotive's turnover decreased by 30% to GBP2.1 million
(FY19: GBP2.9 million). H120 revenues were GBP1.5 million (H1 19:
GBP1.5 million), and significant revenue reduction resulted in H2
as call offs for existing parts were reduced in the Covid trading
period. Strong margin and overhead cost control actions were taken
by management, and GBP0.05 million of UK furlough income was
received, helping to generate a profit after tax of GBP0.2 million
(FY19: GBP0.4 million).
Currency
The Group's overseas operations and certain key raw material
suppliers require the Group to trade in currencies other than
Sterling, its base currency. During the year, operational
transactions were conducted in US Dollar, Swedish Kronor and Euro
and the retranslation of the results of the German and Swedish
operations were affected by currency fluctuations. The key raw
materials for Neptune production are currently imported from South
Korea with transactions conducted in US Dollars. The Group has
taken steps to mitigate this risk by establishing alternative
sources for non patented product which could then also be
transacted in Euro. The Group also has Euro based purchases for
materials and production, including equipment. As Euro sales are
expected to increase from our German business, this would allow us
to manage relative balances in British Pounds, Euros and US
Dollars.
The Group continues to benefit from natural hedging, arising
from its structure and trading balances, which mean that the
Group's result in both years has only been impacted in a limited
way as a result of currency translations.
The Group held no forward currency contracting arrangements at
either year-end. Transactions of a speculative nature are, and will
continue to be, prohibited. As Neptune grows management will
continue to monitor the Group's US Dollar exposure and its impact
on the Group's results. Where the frequency and quantum of
purchases can support active currency management, we may implement
a formal hedging strategy.
Net finance expense
Finance expense increased to GBP0.5 million (FY19: GBP0.2
million) as a result of the adoption of IFRS 16 and the inclusion
of GBP0.3 million of financing charges previously presented in
operating lease expenses. Improvements resulted from a deliberate
strategy to optimise working capital, primarily in stocks and
debtors and to reduce Invoice Financing (IF) facility draw-down
reliance, yet simultaneously improving the payment cycle to trade
creditors. Short term overdrafts were also repaid in the UK in
January 2020 with a GBP0.85 million reduction across the Group. The
IF facility was repaid in August 2020, and was not in use as at
September 2020. Negotiations with our Neptune partner IKSung also
meant that our direct open credit with them was extended for all of
FY20, allowing the bank trade finance facility to be fully repaid.
The Group secured a 5 year MEIF GBP1.5 million loan, at a coupon
rate of 7.5% in the year which was fully drawn down by February
2020. CBILS loan funding of GBP2.75 million was also received in
July 2020 at a net GBPzero cash interest cost for the first 12
month period. The accounting for this, results in recognition of
the interest waived of GBP0.1 million as a form of grant income
with an equal expense over the year to July 2021. Car and equipment
finance leases reduced in FY20 as some agreements completed during
the year, with no renewal, which reduced interest costs.
Accordingly, the net finance expense significantly reduced in H2 to
approximatelyGBP70,000, compared with approximatelyGBP120,000 in
H1.
An analysis of the net finance expense is presented in the
Annual Report and Accounts.
Taxation
The effective tax rate in the year was below that expected based
on current UK corporation tax levels. Given the quantum of losses
compared to expected profitability in the next two years, the Group
has not recognised the majority of current year losses as a
deferred tax asset. The balance sheet asset has been reviewed and
is considered to be supportable based on the Group's expected
trading.
The Group's technical R&D and applications teams have, as in
prior years, continued to enhance materials, improve processes and
develop new products. The Covid trading pattern and significant
disruption to revenues has meant that larger net losses prevail
than were previously expected. Accordingly, the Group has revised
its strategy and will now utilize the additional losses to obtain
actual R&D tax credit cash refunds to optimize the cash
position. A revised R&D claim for the year ended September 2018
was submitted in FY20 and a repayment of GBP0.1 million has
subsequently been received. Similarly a claim for the year ended
September 2019 will be revised and submitted on this basis.
Although at a lower level than 2019, R&D has continued and
this, together with recognition and use of available brought
forward losses when profitability increases, will mean that the
effective tax rate will remain below the UK statutory level for the
short to medium term with an unrecognized deferred tax asset of
GBP0.77 million in the UK (2019: GBP0.30 million).
The Group's overseas subsidiaries continue to have brought
forward taxable losses available which will, in the short term,
offset expected trading profits in Sweden and Germany that are
higher relative corporation tax territories than the UK. Having
reviewed recent trading performance for the European entities, the
Group has fully recognized the remaining losses in Germany as a
deferred tax asset and a degree of those in Sweden. The Group has a
further GBP0.03 million (FY19: GBP0.13 million) unrecognised tax
asset in respect of Swedish tax losses.
Earnings per share
Loss per share was 4.35 pence (FY19: Loss per share 6.25 pence)
reflecting the loss in the year. The weighted average number of
shares was 39,600,984 in the year (FY19: 17,500,000).
Dividends
The Board are not proposing a final dividend for the current
year (FY19: GBPnil) and no interim dividend (FY19: no interim
dividend) was paid.
Net cash/(debt) and working capital
The Group ended the year with net debt of GBP1.9 million (FY19:
GBP2.3 million) excluding the IFRS16 calculated lease liabilities
of GBP5.8 million.
The Group secured a GBP1.5 million 5 year term loan from MEIF in
H1. GBP2.75 million of UK CBILS loan funding was received into the
Group in July 2020. Of this GBP0.75 million is a 1 year bullet loan
repayable by 30(th) June 2021 and a further GBP2 million is a 6
year term loan with no repayments until July 2021. There is no
interest payable for the first 12 months on either loan. Germany
secured a local equivalent Government support loan of EUR300,000
that is repayable over 10 years with an interest cost of 1.03%
p.a.
The Group has GBP0.3 million (FY19: GBP0.5 million) of Hire
Purchase agreements in the UK. Long-term asset backed bank loans in
Sweden were substantially repaid in FY20 (FY19: GBP0.1 million).
There were no new hire purchase agreements in the year and GBP0.1
million (FY19: GBP0.1 million) of the new short term trade import
facility was utilised for Neptune materials purchases but had been
fully repaid at the year-end.
The Group has focused on working capital optimisation in the
year, this has already been partially described above. Collection
of trade debtors improved in the year with a reduction of overdue
balances from additional focus and applied resource. Bad debt or
credit note provision charge in the year was GBP0.0 million (FY19:
GBP0.2 million). Some of the prior year provision has been retained
against residual overdue invoices which the Group continues to
resolve.
Trade creditors have reduced significantly in the year with
payments being made to terms, usually on a weekly cycle. Stocks
were reduced during H1, but then increased in H2 as we held
additional buffer stocks to help ensure supply continuity against
the Covid backdrop which disrupted smooth production flow. New PPE
items resulted in additional stocks of approximately GBP0.2
million.
Going concern
The Board have concluded, on the basis of current and forecast
trading and related expected cash flows and available sources of
finance, that it remains appropriate to prepare these financial
statements on the basis of a Going Concern.
The Group received financing inflows of GBP4.55 million in the
year, of which GBP3.5 million are long term loans, and the short
term overdraft balance was reduced by GBP0.85 million. Invoice
discounting liabilities of GBP3.7million were repaid but the
facility remains fully available at up to GBP6 million against
relevant trade receivables in addition to an unutilised GBP0.3
million import loan facility. Despite the Covid trading backdrop,
the Group reported positive operating cash flows of GBP1.5 million.
Whilst the operating cash flows benefit from a combination of
improved working capital and cost management, they are also
impacted by the pandemic driven decrease in revenue and associated
net investment in working capital together with the change to the
treatment of operating lease costs on transition to IFRS16. In
addition to the increased focus on working capital management, the
Group has also already made annualised savings of some GBP1 million
in overhead costs and improved operational efficiency, with
continuing programmes in place to make additional improvements.
At the year end there was GBP5.6 million of available cash and
facility headroom, with GBP1.1 million of the loans repayable
within 1 year, of which GBP0.75 million is the UK CBILS bullet loan
repayable in June 2021.
In undertaking their assessment of the future prospects for the
Group, the Directors have prepared trading and cash flow forecasts
for the period to 30 September 2022. These take into consideration
the current and expected future impacts of the Covid 19 pandemic,
diversification of the customer and product ranges and also have
regard to the committed business and enquiry levels from existing
customers. The Directors have also considered the impact of current
and future demand levels for new vehicles, the migration to EV's
and publicly available forward looking market information regarding
market sizes and dynamics. These forecasts have been compared,
together with considering a range of material but plausible
sensitivities, to the available bank facilities and the related
covenant requirements.
The loan repayments and interest costs are expected to be
adequately covered by operating cash generation over the period and
the Group has significant liquidity headroom within its facilities
to accommodate all reasonably foreseeable cash flow requirements in
the event of changes to its demand as a result of Covid, Brexit or
other economic factors, with flexibility also available to
favourably manage the cost base in respect of operating costs,
should the need arise.
The most sensitive factor impacting the forecast period, and the
continued availability of the current facilities, is the EBITDA
covenant in the UK in relation to the GBP2 million CBILS long term
loan. Prior to the CBILS loans being secured, sensitised forecasts
were reviewed with the bank and used as a basis for establishing
the covenants, which apply to both of the CBILS loans. At the
year-end actual UK trading results were approximately GBP1.4
million ahead of the base forecasts at the EBITDA level. In the
next financial year, achievement of the minimum required UK EBITDA,
without significant further unplanned cost or efficiency
improvements, is predicated on minimum revenue levels of GBP19.2
million. This compares with UK revenues of GBP16.8 million in FY20
and GBP21.3 million in FY19. As commented upon elsewhere in this
announcement, significant new contracts have been won since FY19
and, accordingly, the Board are confident the EBITDA target will be
met, especially having regard to further additional mitigating
actions which remain available to the Group.
The Board continues to review the Group's banking and funding
arrangements with a view to ensuring that they remain appropriate
for the planned growth within mainland Europe and to allow for the
more volatile demand pattern in the current economic
environment.
Acquisitions, goodwill and intangible assets
There were no acquisitions made in the year, nor any adjustment
to fair values attributed to previous transactions.
The Board, acknowledging that this is a further year of reported
losses and that the Group's current market capitalisation is
currently less than the Group's net assets, has reviewed the
carrying value of Goodwill and other Intangible assets held at 30
September 2020 (both existing and generated in the year) by
reference to discounted cashflow forecasts for separately
identifiable cash generating units. These forecasts are based on
Board approved budgets and an assessment of likely conversion from
pipeline to revenue.
Having considered the assumptions, headroom and a range of
reasonably foreseeable sensitivities indicated by these assessments
the Board are able to conclude that the carrying values are fully
recoverable.
Capital expenditure
Additions to tangible fixed assets were GBP0.2 million (FY19:
GBP0.2 million) in the year with no significant single items
acquired. The Group continues to benefit from investment in
equipment in recent years and therefore has capacity to address
current demand levels. Planning for additional investments designed
to improve operational efficiency is ongoing and the Board expects
expenditure to be incurred on an ongoing basis in FY21 in support
of further operational gains.
Research and development costs of GBP0.13 million (FY19: GBP0.15
million) have been capitalised in the period as the Board considers
they meet the Group's stated policy for recognition of internally
generated assets. The costs are focused on a range of projects
designed to further enhance the Group's current materials and
product ranges and improve production capabilities to derive volume
or cost reduction benefits.
Financial risk management
Details of our financial risk management policies are disclosed
in the Annual Report and Accounts.
Kamran Munir
Chief Financial Officer
Consolidated income statement
For the year ended 30 September
2020 2020 2019
Note GBP000 GBP000
Revenue 1 21,517 26,890
Cost of sales excluding exceptional
costs (15,472) (19,403)
Exceptional cost of sales (164) -
Total cost of sales (15,636) (19,403)
------------------------------------ ------ --------- ---------
Gross profit 5,881 7,457
Other operating income 787 -
Distribution expenses (650) (734)
------------------------------------ ------ --------- ---------
Administrative expenses excluding
exceptional costs and amortisation (6,780) (7,608)
Exceptional administrative
expenses 2 (292) (433)
Amortisation of acquired intangible
assets 2 (238) (237)
Total administrative expenses (7,310) (8,278)
------------------------------------ ------ --------- ---------
Operating loss 2 (1,292) (1,555)
Finance expense 3 (523) (192)
Share of post-tax profit of
equity accounted joint ventures 55 203
Loss before tax (1,760) (1,544)
Tax credit 37 45
Loss after tax for the year (1,723) (1,499)
Earnings per share for loss
attributable to the owners
of the parent during the year
Basic (pence) 4 (4.35)p (6.25)p
Diluted (pence) 4 (4.35)p (6.25)p
========= =========
All amounts relate to continuing operations.
Consolidated statement of comprehensive income
For the year ended 30 September
2020 2020 2019
GBP000 GBP000
Loss after tax for the year (1,723) (1,499)
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss
Currency translation differences 18 (15)
Total comprehensive expense
for the year (1,705) (1,514)
Consolidated statement of financial position
As at 30 September 2020 2020 2019
GBP000 GBP000
Non-current assets
Property, plant and equipment 10,082 10,727
Right-of-use assets 5,001 -
Intangible assets 3,322 3,493
Investments in equity-accounted
joint ventures 147 217
Deferred tax asset 149 223
Total non-current assets 18,701 14,660
Current assets
Inventories 1,938 1,961
Trade and other receivables 4,339 6,729
Cash and cash equivalents 2,974 3,132
Total current assets 9,251 11,822
Total assets 27,952 26,482
Current liabilities
Trade and other payables 3,151 4,635
Loans and borrowings 1,027 5,143
Lease liabilities 917 -
Total current liabilities 5,095 9,778
Non-current liabilities
Trade and other payables 117 115
Loans and borrowings 3,847 301
Lease liabilities 4,970 -
Deferred tax liability 74 185
Total non-current liabilities 9,008 601
Total liabilities 14,103 10,379
Net assets 13,849 16,103
Equity attributable to
equity
holders of the company
Share capital 792 792
Share premium account 15,866 15,883
Other reserves 1,886 1,886
Currency differences reserve (127) (145)
Profit and loss account (4,568) (2,313)
Total equity 13,849 16,103
Consolidated statement of cash flows
For the year ended 30 September 2020
2020 2019
GBP000 GBP000
Operating activities
Loss after tax (1,723) (1,499)
Adjustments for:
Income tax (37) (45)
Finance expense 523 192
Employee share based payment (credit)/charge (15) 10
Non-cash element of other income (109) -
Depreciation of property, plant and
equipment 836 800
Depreciation of right-of-use assets 851 -
Amortisation and impairment of intangible
assets 317 352
Share of post-tax profit of equity
accounted joint ventures (55) (203)
588 (393)
Decrease in trade and other receivables 2,296 249
Decrease in inventories 23 361
Decrease in trade and other payables (1,426) (1,229)
893 (619)
Cash generated from/(used in) operations 1,482 (1,012)
Income taxes (paid)/received (5) 15
Net cash flows from operating activities 1,476 (997)
Investing activities
Purchase of property, plant and equipment (154) (232)
Purchase of intangible assets (125) (152)
Dividend received from equity-accounted
for joint venture 125 190
Net cash used in investing activities (154) (194)
Financing activities
Interest paid (421) (192)
Issue of shares - 3,500
Share issue expenses paid (17) (205)
Bank loans advanced 4,523 127
Loan issue expenses paid (66) -
Bank loans repaid (213) (151)
Payment of lease liabilities (549) -
Hire purchase and finance leases
repaid (168) (432)
(Decrease)/increase in invoice discounting (3,716) 736
Net cash (used in)/ generated from
financing activities (627) 3,383
Net increase in cash and cash equivalents 695 2,192
Cash and cash equivalents at beginning
of year 2,125 (67)
Cash and cash equivalents at end
of year 2,820 2,125
2020 2019
GBP000 GBP000
Cash and cash equivalents comprise:
Cash balances 2,974 3,132
Bank overdrafts (154) (1,007)
2,820 2,125
Reconciliation of movements in net cash/financing
liabilities
Year ended 30 September Opening Cash flows Non-cash Closing
2020 GBP000 GBP000 movements GBP000
GBP000
Cash and cash equivalents
Cash balances 3,132 (158) - 2,974
Bank overdrafts (1,007) 853 - (154)
-------- ----------- ----------- ---------
2,125 695 - 2,820
Financing liabilities
Invoice discounting (3,716) 3,716 - -
Bank loans (216) (4,244) 77 (4,383)
Hire purchase liabilities (505) 168 - (337)
Lease liabilities - 549 (6,436) (5,887)
-------- ----------- ----------- ---------
(4,437) 189 (6,359) (10,607)
(2,312) 884 (6,359) (7,787)
-------- ----------- ----------- ---------
Year ended 30 September Opening Cash flows Non-cash Closing
2019 GBP000 GBP000 movements GBP000
GBP000
Cash and cash equivalents
Cash balances 91 3,041 - 3,132
Bank overdrafts (158) (849) - (1,007)
-------- ----------- ----------- ---------
(67) 2,192 - 2,125
Financing liabilities
Invoice discounting (2,980) (736) - (3,716)
Bank loans (240) 24 - (216)
Hire purchase liabilities (937) 432 - (505)
-------- ----------- ----------- ---------
(4,157) (280) - (4,437)
(4,224) 1,912 - (2,312)
-------- ----------- ----------- ---------
Material non cash transactions
Financing liabilities now include lease liabilities, primarily
in respect of property leases, following the adoption of IFRS 16.
These were previously only disclosed in operating lease commitments
and the discounted liability at the transition date of 1 October
2019 of GBP6,422,000 is shown in non-cash movements above together
with a GBP14,000 foreign exchange movement.
Consolidated statement of changes in equity
For the year ended 30 September 2020
Cumulative
Share currency
Share premium Other differences Profit and Total
loss account
capital account reserves reserve loss equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 30 September 2019 792 15,883 1,886 (145) (2,313) 16,103
Effect of adoption of IFRS 16
(note 1) - - - - (517) (517)
Comprehensive income for the year
Loss for the year - - - - (1,723) (1,723)
Other comprehensive income - - - 18 - 18
Total comprehensive expense for
the year - - - 18 (1,723) (1,705)
Contributions by and distributions
to owners
Share issue expenses (re August
2019 placing) - (17) - - - (17)
Share based payment - - - - (15) (15)
Total contributions by and distributions
to owners - (17) - - (15) (32)
At 30 September 2020 792 15,866 1,886 (127) (4,568) 13,849
------- ------- -------- ----------- ------------- -------
Cumulative
Share currency Profit and
Share premium Other differences loss Total
capital account reserves reserve account equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 30 September 2018 442 12,938 1,886 (130) (824) 14,312
Comprehensive income for the
year
Loss for the year - - - - (1,499) (1,499)
Other comprehensive income - - - (15) - (15)
Total comprehensive expense
for the year - - - (15) (1,499) (1,514)
Contributions by and distributions
to owners
Shares issued 350 3,150 - - - 3,500
Share issue expenses - (205) - - - (205)
Share based payment - - - - 10 10
Total contributions by and
distributions to owners 350 2,945 - - 10 3,305
At 30 September 2019 792 15,883 1,886 (145) (2,313) 16,103
======= ======= ======== =========== ============ =======
Basis of preparation of financial statements
While the financial information included in this annual
financial results announcement has been prepared in accordance with
the recognition and measurement principles of International
Accounting Standards in conformity of the requirements of the
Companies Act 2008, this announcement does not contain sufficient
information to comply therewith.
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 30 September 2020
or 2019 but is derived from those accounts. Statutory accounts for
the year ended 30 September 2019 have been delivered to the
Registrar of Companies and those for the year ended 30 September
2020 will be delivered following the Company's annual general
meeting.
The auditors have reported on those accounts; their reports were
unqualified and did not include references to any matters to which
the auditors drew attention by way of emphasis without qualifying
their reports.
Their reports for the year end 30 September 2020 and 30
September 2019 did not contain statements under s498 (2) or (3) of
the Companies Act 2006.
The consolidated financial statements are drawn up in sterling,
the functional currency of Autins Group plc. The level of rounding
for the financial statements is the nearest thousand pounds.
Changes in accounting policies
These financial statements have been prepared in accordance with
International Accounting Standards in conformity with the
requirements of the Companies Act 2006 for periods beginning on or
after 1 October 2019 and the following new standards have been
adopted in these financial statements.
New accounting standards applicable to the year
The Group has adopted the following new standard as of 1 October
2019 in these financial statements:
International Financial Reporting Standard ("IFRS 16") Leases.
IFRS 16 is effective for accounting periods beginning on or after 1
January 2019 and impacts the group results for the year ending 30
September 2020. It sets out the principles for the recognition,
measurement, presentation and disclosure of leases and replaces IAS
17 Leases and IFRIC 4 Determining whether an arrangement contains a
lease. Instead of recognising an operating expense for operating
lease payments, the Group instead recognises and presents right of
use assets and lease liabilities in accordance with the accounting
policy set out below.
On transition to IFRS 16 at 1 October 2019, the Group has
adopted the modified retrospective approach applying certain
practical expedients, excluding leases with duration of less than
one year and applying the same discount rate to leases with similar
characteristics. The net present value of the future lease payments
at this date is recognised as an opening transition liability of
GBP6.42 million with the right-of-use assets recorded as GBP5.84
million, measured primarily by reference to the net present value
at the inception of each lease, depreciated to the date of
transition. This resulted in a GBP0.52 million charge taken
directly to retained earnings at 1 October 2019 under the modified
approach, reflecting the difference between the finance charges
arising in the initial years of the lease terms prior to the
transition date determined using an effective interest rate of 5%
and the straight line depreciation of the assets. Prepaid rent and
lease incentive accruals previously recognised are removed and
incorporated in the calculation of the IFRS 16 balances.
Depreciation of GBP0.85 million has been charged in respect of the
assets in the year and finance charges of GBP0.31 million incurred
compared with GBP1.08 million of operating lease rentals that would
have been charged under the previous basis, an increase of GBP0.08
million in the total charges included in the income statement (see
tables in note 26 for details of the full impact on the financial
statements). The comparatives for the year ended 30 September 2019
have not been adjusted and are presented in accordance with
IAS17.
New accounting standards applicable to future periods
There are no new standards, interpretations and amendments which
are not yet effective in these financial statements, expected to
have a material effect on the Group's future financial statements.
After Brexit, the UK will continue to apply International
Accounting Standards in conformity with the requirements of the
Companies Act 2006.
1. Revenue and segmental information
Revenue analysis
2020 2019
GBP000 GBP000
Revenue, recognised at a point in
time, arises from:
Sales of components 20,192 25,411
Sales of tooling 1,325 1,449
21,517 26,860
======= =======
Segmental information
The Group currently has one main reportable segment in each
year, namely Automotive (NVH) which involves provision of
insulation materials to reduce noise, vibration and harshness to
automotive manufacturing. Turnover and operating profit are
disclosed for other segments in aggregate, mainly flooring sales
together with PPE in the current year, as they individually do not
have a significant impact on the Group result. These segments have
no material identifiable assets or liabilities.
Factors that management used to identify the Group's reportable
segments
The Group's reportable segments are strategic business units
that offer different products and services.
Measurement of operating segment profit or loss
The accounting policies of the operating segments are the same
as those described in the summary of significant accounting
policies.
The Group evaluates performance on the basis of operating
profit/(loss). Automotive remained the only significant segment in
the year although there has been investment and costs incurred in
the development and commissioning of equipment which can
manufacture both automotive and other products.
The Group's non-automotive revenues, including acoustic
flooring, personal protective equipment ('PPE') and office
equipment products, are included within the others segment.
Segmental analysis for the year ended 30 September 2020
Automotive Others 2020
NVH GBP000 Total
GBP000 GBP000
Group's revenue per consolidated
statement of comprehensive income 18,446 3,071 21,517
Depreciation 1,600 -
Amortisation 301 16
Segment operating (loss)/profit (1,504) 212 (1,292)
Finance expense (524)
Share of post-tax profit of equity
accounted joint ventures 55
Group loss before tax (1,761)
========
Additions to non-current assets 279 - 279
Reportable segment assets 27,805 - 27,805
Investment in joint ventures 147
Reportable segment assets/total
Group assets - 27,952
Reportable segment liabilities/total
Group liabilities 14,103 - 14,103
=========== ======== ========
Segmental analysis for the year ended 30 September 2019
Automotive Others 2019
NVH GBP000 Total
GBP000 GBP000
Group's revenue per consolidated
statement of comprehensive income 24,841 2,019 26,860
Depreciation 800
Amortisation and impairment 280 72
Segment operating (loss)/profit (1,584) 29 (1,555)
Finance expense (192)
Share of post-tax profit of equity
accounted joint ventures 203
Group loss before tax (1,544)
========
Additions to non-current assets 384 384
Reportable segment assets 26,265 26,265
Investment in joint ventures 217 217
Reportable segment assets/total
Group assets 26,482 26,482
=========== ======== ========
Reportable segment liabilities/total
Group liabilities 10,379 10,379
=========== ======== ========
Revenues from one customer in 2020 totals GBP10,895,000 (2019:
GBP15,187,000). This customer purchases goods from Autins Limited
in the United Kingdom and there are no other customers which
account for more than 10% of total revenue.
External revenues by location of customers
2020 2019
GBP000 GBP000
United Kingdom 16,063 20,826
Sweden 322 989
Germany 3,197 3,707
Other European 1,913 1,291
Rest of the World 22 47
21,517 26,860
The only material non-current assets in any location outside of
the United Kingdom are GBP899,000 (2019: GBP937,000) of fixed
assets and GBP551,000 (2019: GBP581,000) of goodwill in respect of
the Swedish subsidiary. GBP775,000 of cash balances were held in
Germany which will be partly utilised to repay intercompany debt
owed to a UK group company.
2. Loss from operations
The operating loss is stated after charging/(crediting):
2020 2019
GBP000 GBP000
Foreign exchange losses 11 57
Depreciation of property, plant
and equipment 836 800
Depreciation of right-of-use
assets 851 -
Amortisation of intangible assets 317 280
Impairment of intangible assets - 72
Cost of inventory sold 14,573 18,454
Impairment of trade receivables 17 -
Government job retention scheme
income (672) -
Other government assistance and
grants (115) -
Employee benefit expenses (see
note 6) 6,822 7,479
Lease payments (2020 short term
leases only) 120 1,338
Auditors' remuneration:
Fees for audit of the Group 85 60
Additional fees in respect of prior
year audit - 40
Exceptional inventory provisions 164 -
Exceptional restructuring costs
in respect of:
Restructuring programme, inc
severance costs 132 364
Legal and professional fees - 69
Change of Chief Financial Officer 160 -
------- -------
292 433
======= =======
Current year exceptional costs
Overhead and operational restructuring programme
Following a detailed operational review initiated by the change
of Chief Financial Officer and in preparation for the
rationalisation of the UK premises, the Group reviewed its
inventory and identified GBP164,000, primarily in respect of
materials that were being held for development or aftermarket
service purposes, which are to be scrapped to allow floor space
rationalisation and an associated reduction in future premises
costs.
The Group also incurred exceptional administrative costs of
GBP160,000 in the year in respect of the change of CFO, including
recruitment fees and compensation costs. As part of the operational
review initiated by the new CFO and in response to COVID-19, which
necessitated further operational changes and cost reductions, the
Group incurred a further GBP132,000 of severance related costs.
Prior year exceptional costs
In response to the challenging trading conditions affecting the
automotive industry the Group completed a significant overhead cost
out programme in the period and sought to adjust its funding
arrangements to suit a period of uncertainty. This programme
required a number of redundancies (with associated costs of
GBP364,000 and additional legal and professional expenses of
GBP69,000 associated with a review of the Group's overall banking
facilities and structure resulting in exceptional charges of
GBP433,000.
3. Finance expense
2020 2019
GBP000 GBP000
Bank interest 180 128
Amortisation of loan issue costs 7 -
Right-of-use asset financing charges 305 -
Interest element of hire purchase
agreements 31 64
` 523 192
4. Earnings per share
2020 2019
GBP000 GBP000
Loss used in calculating basic and
diluted EPS (1,723) (1,499)
Number of shares
Weighted average number of GBP0.02
shares for the purpose of basic earnings
per share ('000s) 39,601 23,971
Weighted average number of GBP0.02
shares for the purpose of diluted
earnings per share ('000s) 39,601 23,971
Earnings per share (pence) (4.35)p (6.25)p
Diluted earnings per share (pence) (4.35)p (6.25)p
========= =========
Earnings per share have been calculated based on the share
capital of Autins Group plc and the earnings of the Group for both
years. There are options in place over 524,204 (2019: 633,657)
shares that were anti-dilutive at the year end but which may dilute
future earnings per share.
5. Annual report and accounts
The annual report and accounts will be posted to shareholders
shortly and will be available to members of the public at the
Company's registered office at Central Point One, Central Park
Drive, Rugby, CV23 0WE and on the Company's website
www.autins.co.uk/investors .
6. Annual General Meeting
The Annual General Meeting of Autins Group plc will be held at
the Company's main offices at Central Point One, Central Park
Drive, Rugby, Warwickshire, CV23 0WE on 12th March 2021 commencing
at 11am.
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END
FR EAPFNFLNFEFA
(END) Dow Jones Newswires
January 20, 2021 02:00 ET (07:00 GMT)
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