REG - Autins Group PLC - Interim Results
28/06/2022 07:01
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RNS Number : 3666Q Autins Group PLC 28 June 2022
28 June 2022
Autins Group plc
("Autins" the "Company" or the "Group")
Interim Results
Autins Group plc (AIM: AUTG), the UK and European based 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 six months ended 31 March 2022.
Financial Summary
· Revenue decreased by 31.5% to £9.39m (H1 21: £13.71m) though remained
comparatively stable against the preceding 6-month period, decreasing 3.4%
against H2 21
· Gross profit decreased by 39.9% to £2.35m (H1 21: £3.91m)
· Gross margins decreased by 3.4% to 25.1% (H1 21: 28.5%)
· EBITDA(1) was a loss of £0.35m (H1 21: £1.18m profit)
· Loss after tax of £1.38m (H1 21: profit of £0.01m)
· Loss per share of 2.83p (H1 21: earnings per share of 0.025p)
· Operating cashflow was a £0.40m net outflow (H1 21: £0.87m net
inflow)
· Net debt(2) excluding IFRS16 lease liabilities improved to £1.03m (H1
21: £1.84m)
· Cash and cash equivalents were £2.78m at the period end (H1 21
£2.91m) following an equity placing in December 2021 which raised a net
£2.80m
· Group cash headroom(3) of £5.14m (H1 21: £6.11m)
1: EBITDA is stated on an IFRS 16 basis.
2. Net debt is cash less bank overdrafts, loans, invoice discounting, hire
purchase finance and excludes right of use lease liabilities.
3. Sum of net cash at bank and residual invoice financing capacity.
Performance Against H2 21
· Group sales were -3.4% (-£0.3m) compared to H2 21, with UK sales up
7.1%, whereas Germany sales were down -19.7% as they felt the full impact of
the semi-conductor and Ukraine crisis. Swedish sales were stable
· EBITDA reduced by £0.27m compared to H2 21 despite no furlough
support which contributed c.£0.35m in H2 21
Operational Highlights
· The automotive market continued to be significantly affected by a
shortage of semi-conductors, whilst the Ukraine war further disrupted the
supply chains, however OEMs still have large unfulfilled order books, and our
customer base in the automotive market expects to see recovery once the
semi-conductor supply improves
· Enquiry activity for long-term automotive projects totalling £17m
received between January and April 2022, a significant improvement over the
£3.7m received in the comparative period last year.
· Underlying sales demand for flooring products is stable
· 13 office pod companies, including suppliers to multinational
companies, are specifying Neptune for their products
· European sales account for 37% of the Group turnover, up from 33%
last year
· Neptune retail sales continue to increase and are up 10% on H2 21 to
£1.2m
Gareth Kaminski-Cook, Chief Executive, said:
"OEMs continue to report record levels of order backlogs and the market
expects new semi-conductor capacity to begin to ease during the latter part of
2022 after which an automotive market recovery should begin. In addition,
the underlying demand for our flooring products remains positive and we
continue to develop into other markets with dedicated resource.
There is little doubt that we are now entering a period of high-cost inflation
and we will continue to take actions to mitigate the impact on margins through
efficiency improvements, purchasing cost control and price increases. Over
the last two years the Autins Board and Leadership team have demonstrated
agility, creativity and great teamwork and will continue to do what is
necessary to mitigate inflationary pressures.
Following a protracted period of very low new project activity in the
automotive division, since January we have experienced an uplift in the number
and value of new enquiries, totalling £17m of potential annual new revenue.
45 of these enquiries, with potential annual value of £11m are for parts to
go on electric vehicles for 11 different OEMs including new start-ups and
established brands.
We will need to continue striking a balance between sharp focus on cost
control and executing our growth strategy. Our priorities are to ensure that
we can offer innovative recyclable NVH solutions, maximise our penetration
onto full electric platforms and continue our diversification into new
markets.
Whilst it can be expected that the Ukraine war could suppress the trajectory
of market recovery, the medium-term outlook remains positive."
For further information please contact:
Autins Group plc
Gareth Kaminski-Cook, Chief Executive Via SEC Newgate
Kamran Munir, CFO
Singer Capital Markets Tel: 020 7496 3000
(Nominated Adviser and Broker)
Mark Taylor / Asha Chotai
SEC Newgate Tel: 020 7653 9850
(Financial PR)
Bob Huxford
Max Richardson
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 the UK and European manufacturer of the patented Neptune melt-blown
material and specialises in the design, manufacture, and supply of acoustic
and thermal insulation solutions.
Overview
This has been a period where global events have dominated the financial
performance of the whole automotive supply chain.
Consequently, the year on year first half financial performance was
disappointing, with revenue reducing by £4.32m to £9.39m (H1 21: £13.71m),
which led to an EBITDA loss of £0.35m (H1 21: EBITDA profit of £1.18m).
The performance comparison between H2 2021 and this reporting period is more
positive, with revenue reducing by only £0.30m (-3.1%) and EBITDA reducing by
£0.27m despite there being no furlough support from the UK government, which
had contributed c.£0.35m in H2 2021.
Compared to H2 2021, UK automotive sales improved by 8.3%, driven by modest
improvement in automotive demand and higher sales into other markets.
However, our German automotive sales, which had largely been unaffected by the
semi-conductor crisis throughout the last financial year, finally felt the
impact, which was further exacerbated by OEM plant closures at the beginning
of the Ukraine war, an issue that has since been resolved. Flooring sales
were also lower as post Covid property refurbishment activity declined.
As furlough came to end at the beginning of this financial year, we have had
to further reduce fixed overheads in UK and Sweden and reduce operational
costs, whilst retaining motivated staff in an environment of labour shortages,
volatile demand and rising household costs. We acted proactively and
increased wages for production workers early, increased the overtime rates,
introduced a banked hours scheme, and adopted hybrid working practices where
it was efficient and effective to do so. As a result, our retention rate and
teamwork has improved significantly.
The Group undertook and successfully completed a £3m equity placing in
December 2021 to improve cash headroom and ensure the Company is well
positioned to take advantage of the future market recovery.
Revenue
Sales across the Group decreased by 31.5% to £9.39m (H1 21: £13.71m) driven
by significantly lower demand from our key automotive customers in the UK and
Germany and lower sales in flooring.
Sales through the European operations now account for 37% of Group turnover,
up from 33% H1 2021.
Automotive sales declined by 33.9% to £7.6m (H1 2021: £11.5m), driven by
reduced OEM production caused primarily by semi-conductor shortages, some cost
reduction actions by the Group's major customer and latterly the impact of the
Ukraine war.
Revenue in the UK decreased by 36.6% to £5.9m (H1 2021: £9.3m), with
component revenue reducing by 36.3% and tooling reducing by 54.1% as the OEMs
focused less on releasing new projects and more on cost cutting. The trend
of component sales in the UK however did improve, increasing by 8.3% compared
to H2 2021.
Germany and Sweden have felt, for the first time, the impact of the
semiconductor crisis across the whole period and the Ukraine war directly led
to several German OEM factories being temporarily shut down. As a result,
German sales declined by 21.1% to £3.0m (H1 21: £3.8m), with automotive
sales declining by 13.3% to £1.3m (H1 21: £1.5m), and flooring sales
declining by 27.4% to £1.7m (H1 21: £2.3m). Sweden auto sales reduced by
16.7% to £0.5m (H1 21: £0.6m). Post reporting period, both markets have
improved with sales now above the prior year period.
Non-auto sales were lower by 25.0% at £1.8m (H1 21: £2.4m), driven by a drop
in flooring demand which was partly due to a slowdown in home refurbishment
post Covid and due to high prior year sales for a significant new customer
that required additional one-time stocking quantities. Monthly sales demand
for flooring is now running slightly ahead of the prior year. In the UK, we
have started supplying a strong pipeline of customers in the workspace market
of office pods which has brought revenue of £0.14m in the first half of the
year. Non-auto sales now account for 19% of Group turnover, up from 17% a
year ago.
Sales concentration of our largest customer reduced from 46.2% last year to
38.3% in H1 22, driven primarily by the reduction of the demand from that
customer. In the short to medium term, management would expect this
concentration will normalise back to c. 50% as automotive sales recover,
although the dilution will continue to grow over the longer term as we develop
the demand from a larger customer base.
Gross margin
The loss of furlough income combined with significant increases in the cost of
labour, energy, commodities, overseas freight, and material have all
challenged margins. The largest impact over the last year is from
significantly reduced automotive volumes that reduce the absorption of fixed
production overhead costs.
So, it is a testament to all the control actions taken to improve
efficiencies, purchasing costs, labour control and some price increases that,
despite a very large reduction in production demand we have managed to control
the decline in gross margin to a reduction of just 3.4% to 25.1% compared to
the prior year period. However, in the context of increasing costs across
the board, the Company maintained margins between H2 21 and H1 22.
EBITDA and operating profit
The reported H1 22 EBITDA loss of £0.35m (H1 21: EBITDA profit of £1.18m)
and reported operating loss of £1.13m (H1 21: profit of £0.15m) do not
reflect any exceptional costs.
Joint venture
The Group's share of joint venture activities relates solely to Indica
Automotive, a UK based foam conversion business.
Turnover at Indica Automotive decreased by 37.4% to £0.92m (H1 21: £1.47m),
with a profit after tax of £0.01m (H1 21: £0.21m). The Group remains the
largest customer of the joint venture, and the ratio of sales to the Group as
a percentage of total sales has reduced from 82% to 73%.
Net finance expense
Net finance expense for the period was consistent at £0.26m (H1 21: £0.27m)
including IFRS 16 charges of £0.14m (H1 21 £0.14m). The interest element
of hire purchase agreements is £0.01m (H1 21: £0.01m) with interest charged
on bank borrowings of £0.12m (H1 21: £0.13m).
Taxation
Given the continuing economic conditions, a relatively small proportion of the
losses carried forward are recognised in deferred tax balances, consistent
with the judgement made in September 2021.
Dividends
The Board continues to believe that during the current period of economic
uncertainty a suspension in dividend payments remains appropriate. As such,
no interim dividend is proposed.
Net debt and financing
The Group ended the period with net debt (being the net of cash and cash
equivalents and the Group's loans and borrowings, excluding right of use lease
liabilities) of £1.03m (H1 21 £1.84m). Including £5.25m (H1 21 £5.34m)
arising from IFRS 16 lease liabilities, the Group's net debt would be £6.28m
(H1 21 £7.18m). Net debt has reduced as a result of the placing of shares
in the period offset by the impact of the trading outflows. Cash and cash
equivalents at the period end were £2.8m (H1 21: £2.9m).
In June 2022 the Company secured a deferment of its UK loan repayments until
January 2023 and at 31 March 2022, the Group's UK HSBC facilities provided up
to £3.5m (H1 21: £6.0m) of invoice financing facility (subject to available
accounts receivable balances). In addition, £0.5m (H1 21: £0.5m) of asset
finance facilities are available, subject to covenant compliance. At the end
of the period, none of the invoice financing facility had been utilised (H1
21: £nil) with £0.4m used from the asset finance facility (H1 2021: £0.4m).
Group cash headroom, being the sum of net cash at bank and residual invoice
financing capacity, was £5.1m (H1 21 £6.1m).
Capital expenditure
The Group invested £0.1m (H1 21: £0.1m) in its operating facilities during
the period. The Group has planned further investment for replacement of ageing
equipment, as and where required, and production performance enhancement. Over
the coming twelve months, this is expected to be less than £0.5m across the
Group.
Government support and cost conservation measures
The Group has reduced reliance on Government support schemes with the easing
of the pandemic.
The Group has not utilised any Coronavirus job retention schemes in the UK in
the first half of the current financial year. In H1 2021 furlough and pay
reduction recoveries across the UK facilities amounted to c£0.35m. In Sweden,
the Group was able to secure government funding of £0.02m during the period.
Employees
Autins continued with its Covid-19 safe working practices policy, with appropriate home working, social distancing measures and sanitising hygiene management and monitoring measures. This has only just been relaxed post period end.
In the UK, we have taken several initiatives to help ensure employee engagement and retention, with special focus on production staff. These include a combination of regular weekly cross functional factory planning meetings coupled with informal feedback "coffee" sessions. We have introduced a banked hours scheme to align surety of workers' pay against volatile customer demand patterns and converted several temporary staff positions to permanent roles to aid core team strength. Production pay rates have been improved by more than 7.5% and overtime rates have also been strengthened to improve net take home pay, with pay banding and related multi-skilling also being improved. Staff retention has been in excess of 95% during the period.
Productivity and teamwork have improved which has had a positive impact on quality, customer service and net cost in the factories. This has been critically important during a period where availability of labour has become a key challenge for manufacturers.
In Germany and Sweden, we have also worked hard to ensure excellent stable and committed teams.
Going Concern
In approving these Interim Financial Statements, the Board have considered
current trading, profit and cash flow forecasts and assessed existing
borrowings and available sources of finance.
At the time of releasing our full year financial statements, forward looking
profit and cash flow projections for FY22, FY23 and beyond until September
2027 were prepared and considered. As noted above, an equity placing of £2.8m
(net) was successfully completed in December 2021 and, in conjunction with
this, our major UK lenders also gave covenant waivers until March 2023 and
capital payment deferments that are now extended until January 2023. This was
preceded by an independent assessment of the trading and working capital
forecasts for a two-year period until September 2023, which assumed that
semi-conductor supply chain disruption would continue throughout calendar 2022
and into 2023, and easement was expected to commence during calendar Q3 2022.
Against a reasonable base case, adverse sensitivities of up to 40% and 50%
were assessed against the prevailing key customer demand schedules and
forecasts. These assessments were documented in detail in our FY21 audited
financial statements.
Whilst UK sales in H1 22 remained above these minimum ranges there remains
uncertainty on the exact timing and profile of semi-conductor supply and
automotive market recovery against the current backdrop of the Ukraine
conflict and global supply chain pressures. However, the Board still believe
it is reasonable to expect a modest recovery in automotive volumes in the
coming 12 months.
Energy, materials and labour costs are being impacted significantly, and the
Company is taking a number of actions to address these issues, including
engaging in price increase negotiations with its customers. Accordingly, the
Board considers that it is reasonable to assume that these actions will
adequately protect gross margins.
The Company will continue further covenant compliance review discussions with
its two major lenders over the coming months for the period beyond March 2023,
using forecasts that will be updated to incorporate prevailing market and
trading data. At the June 2022 reporting date, the Group's liquidity remains
healthy, with cash headroom being in excess of £4.5m.
Having due regard to all the matters described above, the Board have a
reasonable expectation that the Group will continue to have adequate resources
to remain in operation for at least 12 months after the release of these
financial statements. The Board has therefore concluded to adopt the going
concern basis in preparing these financial statements.
Outlook
OEMs continue to report record levels of order backlogs and the market expects
new semi-conductor capacity to begin to ease during the latter part of 2022
after which an automotive market recovery should begin. In addition, the
underlying demand for our flooring products remains positive and we continue
to develop into other markets as a result of additional dedicated resource.
There is little doubt that we now enter a period of high-cost inflation, and
we will continue to take actions to mitigate the impact on margins through
efficiency improvements, purchasing cost control and price increases. Over the
last two years the Autins Board and Leadership team have demonstrated agility,
creativity and great teamwork and will continue to do what is necessary to
mitigate inflationary pressures.
Despite the impact of the Ukraine war and semi-conductor supply shortages,
which are suppressing the short-term outlook, the medium-term outlook remains
positive with an uplift in the number of new enquiries since January 2022
totalling £17m of potential new annual revenue. 45 of these enquiries,
with potential annual value of £11m are for parts to go on electric vehicles
for 11 different OEMs including new start-ups and established brands.
We will need to continue striking a balance between sharp focus on cost
control and executing our growth strategy. Our priorities are to ensure that
we can offer innovative recyclable NVH solutions, maximise our penetration
onto full electric platforms and continue our diversification into new
markets.
Whilst it can be expected that the Ukraine war could suppress the trajectory
of market recovery, the medium-term outlook remains positive.
Interim Consolidated Income Statement
Unaudited Unaudited Audited
Period Period Year Ended
1/10/21-31/3/22 1/10/20-31/3/21 30/09/21
Notes £'000 £'000 £'000
Revenue 2 9,392 13,712 23,431
Cost of sales (7,039) (9,803) (17,103)
Gross profit 2,353 3,909 6,328
Other operating income 21 287 649
Distribution and administrative expenses excluding exceptional costs and (3,462) (3,927) (7,494)
amortisation
Amortisation of acquired intangible assets (42) (119) (173)
Total distribution and administrative expenses (3,504) (4,046) (7,667)
Operating (loss)/profit (1,130) 150 (690)
Finance expense (263) (274) (542)
Share of post-tax profit of equity accounted
joint ventures 4 104 53
Loss before tax (1,389) (20) (1,179)
Tax credit 8 30 95
(Loss)/profit after tax for the period (1,381) 10 (1,084)
Earnings per share for (loss)/profit attributable to the owners of the Parent
during the period
Basic (pence) 3 (2.83)p 0.025p (2.74)p
Diluted (pence) 3 (2.83)p 0.025p (2.74)p
Interim Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
Period Period Year Ended
1/10/21-31/3/22 1/10/20-31/3/21 30/09/21
£'000 £'000 £'000
(Loss)/profit after tax for the period (1,381) 10 (1,084)
Other comprehensive (expense)/income:
Items that may be reclassified subsequently to
profit and loss:
Currency translation differences (17) (26) 2
Other comprehensive (expense)/income
for the period (17) (26) 2
Total comprehensive expense
for the period (1,398) (16) (1,082)
Interim Consolidated Statement of Financial Position
Unaudited Unaudited Audited
As at 31/3/22 As at 31/3/21 As at 30/9/21
£'000 £'000 £'000
Non-current assets
Property, plant and equipment 9,390 9,646 9,636
Right-of-use assets 4,475 4,582 4,876
Intangible assets 2,991 3,153 3,059
Investments in equity-accounted
joint ventures 103 171 120
Deferred tax asset 95 95 95
Total non-current assets 17,054 17,647 17,786
Current assets
Inventories 2,107 1,885 2,433
Trade and other receivables 3,954 5,734 3,630
Cash in hand and at bank 2,775 2,957 1,262
Total current assets 8,836 10,576 7,325
Total assets 25,890 28,223 25,111
Current liabilities
Trade and other payables 2,528 4,087 2,584
Loans and borrowings 384 1,129 719
Lease liabilities 830 748 842
Total current liabilities 3,742 5,964 4,145
Non-current liabilities
Trade and other payables 108 114 111
Loans and borrowings 3,417 3,673 3,248
Lease liabilities 4,415 4,588 4,794
Deferred tax liability 39 51 46
Total non-current liabilities 7,979 8,426 8,199
Total liabilities 11,721 14,390 12,344
Net assets 14,169 13,833 12,767
Equity attributable to equity holders of the
Company
Share capital 1,092 792 792
Share premium account 18,366 15,866 15,866
Other reserves 1,886 1,886 1,886
Currency differences reserve (142) (153) (125)
Retained earnings (7,033) (4,558) (5,652)
Total equity 14,169 13,833 12,767
Interim Consolidated Statement of Changes in Equity Unaudited
Share capital Share premium account Other reserves Currency differences reserve £'000 Profit and loss account Total
£'000
£'000 £'000 £'000 equity
£'000
At 1 October 2021 792 15,866 1,886 (125) (5,652) 12,767
Comprehensive expense for the period
Loss for the period - - - - (1,381) (1,381)
Other comprehensive expense - - - (17) - (17)
Total comprehensive expense for the period - - - (17) (1,381) (1,398)
Contributions by and distributions to
owners
Shares issued in the period (note 4) 300 2,700 - - - 3,000
Share issue expenses (note 4) - (200) - - - (200)
Total contributions by and distributions to
owners 300 2,500 - - - 2,800
At 31 March 2022 1,092 18,366 1,886 (142) (7,033) 14,169
Share capital Share premium account Other reserves Currency differences reserve Retained earnings Total
£'000
£'000 £'000 £'000 £'000 equity
£'000
At 1 October 2020 792 15,866 1,886 (127) (4,568) 13,849
Comprehensive income for the period
Profit for the period - - - - 10 10
Other comprehensive expense - - - (26) (26)
Total comprehensive income for the period - - - (26) 10 (16)
At 31 March 2021 792 15,866 1,886 (153) (4,558) 13,833
Share capital Share premium account Other reserves Currency differences reserve Retained earnings Total
£'000
£'000 £'000 £'000 £'000 equity
£'000
At 1 October 2020 792 15,866 1,886 (127) (4,568) 13,849
Comprehensive expense for the year
Loss for the year - - - - (1,084) (1,084)
Other comprehensive income - - - 2 - 2
Total comprehensive expense for the year - - - 2 (1,084) (1,082)
At 30 September 2021 792 15,866 1,886 (125) (5,652) 12,767
Interim Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
Period Period Year ended
1/10/21-31/3/22 1/10/20-31/3/21 30/09/21
£'000 £'000 £'000
Cash flows from operating activities
(Loss)/profit after tax (1,381) 10 (1,084)
Adjustments for:
Income tax (8) (30) (95)
Finance expense 263 274 542
Depreciation of property, plant and equipment 340 474 788
Loss on disposal of fixed assets - 15 25
Depreciation of right-of-use assets 377 410 825
Amortisation of intangible assets 81 179 282
Share of post-tax profit of equity accounted
joint ventures (4) (104) (53)
(332) 1,228 1,230
(Increase)/decrease in trade and other receivables (360) (1,401) 725
Decrease/(increase) in inventories 326 27 (515)
Increase/(decrease) in trade and other payables (32) 1,018 (538)
Cash flows from operations (398) 872 902
Income taxes received 37 62 92
Net cash (used in)/ flows from operating activities (361) 934 994
Investing activities
Purchase of property, plant and equipment (123) (89) (405)
Purchase of intangible assets (30) (28) (30)
Proceeds from disposal of tangible fixed assets - - 8
Dividend received from equity accounted
joint venture 20 80 80
Net cash used in investing activities (133) (37) (347)
Financing activities
Interest paid (255) (155) (380)
Proceeds from issue of shares 3,000 - -
Share issue expenses paid (200) - -
Repayment of loans and borrowings (144) (57) (861)
Payment of lease liabilities (366) (551) (951)
Net cash flows from/(used in) financing activities 2,035 (763) (2,192)
Net increase/(decrease) in cash and cash equivalents 1,541 134 (1,545)
Cash and cash equivalents at beginning
of period 1,238 2,820 2,820
Exchange losses on cash and cash equivalents (4) (42) (37)
Cash and cash equivalents at end of period 2,775 2,912 1,238
Cash and cash equivalents comprise:
Cash balances 2,775 2,957 1,262
Bank overdrafts - (45) (24)
2,775 2,912 1,238
Notes to the Interim Consolidated Financial Information
1. Accounting policies
Description of business
Autins Group plc is a public limited company domiciled in the United Kingdom and quoted on AIM, a market operated by the London Stock Exchange. The principal activity of the Group is the design, manufacture, and supply of acoustic and thermal insulation solutions. The address of the registered office is Central Point One, Central Park Drive, Rugby, Warwickshire, CV23 0WE.
Basis of preparation
In preparing these interim financial statements, the Board have considered the
impact of any new standards or interpretations which will become applicable
for the FY22 Annual Report and Accounts which deal with the year ending 30
September 2022 and there are not expected to be any changes in the Group's
accounting policies compared to those applied at 30 September 2021.
A full description of those accounting policies are contained within our FY21
Annual Report and Accounts which are available on our website (Autins FY21 ARA
(https://www.autins.co.uk/wp-content/uploads/2019/03/Annual-Report-Accounts-2018.pdf)
).
This interim announcement has been prepared in accordance with the recognition
and measurement requirements of International Financial Reporting Standards
issued by the International Accounting Standards Board, as adopted by the
United Kingdom as effective for periods beginning on or after 1 January 2021.
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.
This unaudited consolidated interim financial information has been prepared in
accordance with IFRS as adopted by the United Kingdom. The principal
accounting policies used in preparing the interim results are those the Group
expects to apply in its financial statements for the year ending 30 September
2022.
The financial information does not contain all of the information that is
required to be disclosed in a full set of IFRS financial statements. The
financial information for the six months ended 31 March 2022 and 31 March 2021
is unreviewed and unaudited and does not constitute the Group's statutory
financial statements for those periods.
The comparative financial information for the full year ended 30 September
2021 has, however, been derived from the audited statutory financial
statements for that period. A copy of those statutory financial statements
has been delivered to the Registrar of Companies. The auditor's report on
those accounts was unqualified, did not include references to any matters to
which the auditor drew attention by way of emphasis without qualifying its
report and did not contain a statement under section 498(2)-(3) of the
Companies Act 2006.
The financial information in the Interim Report is presented in Sterling, the
Group's presentational currency.
Basis of consolidation
The consolidated financial statements present the results of the Company and
its subsidiaries (the "Group") as if they formed a single entity.
Intercompany transactions and balances between group companies are therefore
eliminated in full.
Subsidiaries are all entities over which the Group has control. The Group
controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group and
cease to be consolidated from the date on which control is transferred out of
the Group.
The consolidated financial statements incorporate the results of business
combinations using the acquisition method. In the statement of financial
position, the acquiree's identifiable assets, liabilities and contingent
liabilities are initially recognised at their fair values at the acquisition
date.
Operating segments
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief
operating decision maker has been identified as the management team including
the Chief Executive, Chief Financial Officer and Chairman.
The Board considers that the Group's activity constitutes one primary
operating and one separable reporting segment as defined under IFRS 8.
Management consider the reportable segment to be Automotive NVH. Revenue and
profit before tax primarily arises from the principal activity based in the
UK. All material assets are based in the UK. Management reviews the
performance of the Group by reference to total results against budget.
The total profit measure is operating (loss)/profit as disclosed on the face
of the consolidated income statement. No differences exist between the basis
of preparation of the performance measures used by management and the figures
in the Group financial information
2 Revenue
Unaudited Unaudited Audited
Period Period Year ended
1/10/21-31/3/22 1/10/20-31/3/21 30/09/21
£'000 £'000 £'000
Revenue arises from:
Component sales 9,283 13,507 23,084
Sales of tooling 109 205 347
9,392 13,712 23,431
Segmental information
The Group currently has one main reportable segment in each year/period,
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 as they
individually have not had a significant impact on the Group result. In H1 FY22
and in FY21 with a continuing subdued automotive market, a majority of the
other revenue arises from acoustic flooring sales.
Measurement of operating segment profit or loss, assets and liabilities
The accounting policies of the operating segments are the same as those
applied by the Group in the FY21 annual report and accounts.
The Group evaluates performance on the basis of operating (loss)/profit.
1/10/21-31/3/22 Total
Automotive NVH Others £'000
£'000 £'000
Group's revenue per Consolidated
Statement of Comprehensive Income 7,577 1,815 9,392
Depreciation of property, plant and equipment 340 - 340
Depreciation of right-of-use assets 377 - 377
Amortisation 81 - 81
Segment operating (loss)/profit (1,214) 84 (1,130)
Finance expense (263)
Share of post tax profit of equity accounted
joint venture 4
Group loss before tax (1,389)
As at 31/3/22
Automotive NVH Others Total
£'000 £'000 £'000
Additions to non-current assets 153 - 153
Reportable segment assets 25,787 - 25,787
Investment in joint ventures 103 - 103
Total Group assets 25,890 - 25,890
Reportable segment liabilities/
total Group liabilities 11,721 - 11,721
Segmental information (continued)
1/10/20-31/3/21 Total
Automotive NVH Others £'000
£'000 £'000
Group's revenue per Consolidated
Statement of Comprehensive Income 11,355 2,357 13,712
Depreciation of property, plant and equipment 474 - 474
Depreciation of right-of-use assets 410 - 410
Amortisation 155 24 179
Segment operating (loss)/profit (95) 245 150
Finance expense
Share of post tax profit of equity accounted (274)
joint venture 104
Group loss before tax (20)
As at 31/3/21
Automotive NVH Others Total
£'000 £'000 £'000
Additions to non-current assets 117 - 117
Reportable segment assets 28,052 - 28,052
Investment in joint ventures 171 - 171
Total Group assets 28,223 - 28,223
Reportable segment liabilities/
total Group liabilities 14,390 - 14,390
Segmental information (continued)
Automotive Year Ended 30/9/21 Total
NVH Others £'000
£'000 £'000
Group's revenue per Consolidated
Statement of Comprehensive Income 18,659 4,772 23,431
Depreciation of property, plant and equipment 788 - 788
Depreciation of right-of-use assets 825 - 825
Amortisation 235 47 282
Segment operating(loss)/profit (971) 281 (690)
Finance expense (542)
Share of post-tax profit of equity accounted
joint venture 53
Group loss before tax (1,179)
Automotive As at 30/9/21
NVH Others Total
£'000 £'000 £'000
Additions to non-current assets 1,140 - 1,140
Reportable Segment assets 24,991 - 24,991
Investment in joint venture 120 - 120
Total Group assets 25,111 - 25,111
Reportable segment liabilities/
Total Group liabilities 12,344 - 12,344
Reporting of external revenue by location of customers is as follows:
Unaudited Unaudited Audited
Period Period Year ended
1/10/21-31/3/22 1/10/20-31/3/21 30/09/21
£'000 £'000 £'000
United Kingdom 5,531 8,665 13,680
Germany 2,764 3,406 6,753
Sweden 311 309 680
Other European 771 1,332 2,318
Rest of the World 15 - -
9,392 13,712 23,431
3 Earnings per share
Unaudited Unaudited Audited
Year Ended 30/09/21
Period Period
£'000
1/10/21-31/3/22 1/10/20-31/3/21
£'000 £'000
(Loss)/profit used in calculating basic and
diluted earnings per share (1,381) 10 (1,084)
Weighted average number of £0.02 shares
for the purpose of: 39,601
- basic earnings per share ('000) 48,832 39,601
- diluted earnings per share ('000) 48,832 39,996 39,601
Basic and diluted earnings per share (pence) (2.83)p 0.025p (2.74)p
(Loss)/profit per share is calculated based on the share capital of Autins
Group plc and the earnings of the Group for all periods. There are options
in place over 2,523,648 ordinary shares at 31 March 2022 with vesting
dependent on meeting a combination of EBITDA and share price targets over the
period to September 2023. These options were anti-dilutive at the period end
but may dilute future earnings per share.
4 Share capital
In December 2021, 15,000,000 additional £0.02 ordinary shares were issued at
20 pence each. Net proceeds of £2,800,000 arose after incurring issue
expenses of £200,000. This resulted in an increase in the nominal value of
share capital of £300,000 and an increase of £2,500,000 in the share premium
account net of the issue expenses. The total number of ordinary shares in
issue since the December 2022 is 54,600,984.
5 Taxation
The tax credit for the period reflects losses for the period which are not
being recognised as a deferred tax credit and asset (H1 FY21: receipt of a tax
refund of £71k arising from the allowances in respect of prior year research
and development costs). Given the continuing economic conditions, a relatively
small proportion of the losses carried forward are recognised in deferred tax
balances, consistent with the judgement made at September 2021.
6 Interim Report
A copy of the Interim Report will be available on the Company's
website: www.autins.com (http://www.autins.com) .
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