REG - Autins Group PLC - Interim Results
27/11/2024 07:00
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RNS Number : 7733N Autins Group PLC 27 November 2024
27 November 2024
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 unaudited interim results for the six months ended 30 September
2024 and, following the change of year end to 31 March, also provides detail
on the twelve month performance to 30 September 2024.
Financial Summary (six months ended 30 September 2024)
· Revenue in H2 24 decreased by 17.3% to £9.79m (H2 23: £11.84m)
· Gross profit in H2 24 decreased by 15.9% to £3.04m (H2 23: £3.62m)
· Gross margins increased by 0.5% to 31.1% (H2 23: 30.6%)
· Adjusted EBITDA(1) decreased 45.6% to £0.44m (H2 23: £0.81m)
· Loss after tax of £0.79m (H2 23: loss of £0.01m)
· Loss per share of 1.45p (H2 23: loss of 0.026p)
· Operating cashflow was a £0.58m net inflow (H2 23: £1.71m net inflow)
· Net debt(2) excluding IFRS16 lease liabilities decreased to £1.18m (H2
23: £1.60m)
· Cash and cash equivalents were £1.68m at the period end (H2 23:
£2.09m)
· Group cash headroom(3) was £3.47m (H2 23: £3.90m)
1: EBITDA is stated on an IFRS 16 basis and before exceptional items.
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.
Financial Summary (twelve months ended 30 September 2024)
· Revenue decreased by 5.5% to £21.44m (FY23: £22.68m)
· Gross profit unchanged at £6.68m (FY23: £6.68m)
· Gross margins increased by 1.7% to 31.2% (FY23: 29.5%)
· Adjusted EBITDA(1) increased 7.7% to £1.26m (FY23: £1.17m)
· Loss after tax of £1.25m (FY23: loss of £0.91m)
· Loss per share of 2.28p (FY23: loss of 1.67p)
· Operating cashflow unchanged at £2.00m net inflow (FY23: £2.00m net
inflow)
Operational Highlights
· Contract wins in Germany and UK, commencing in financial year 2026 and
valued at in excess of £7.5m over lifetime with peak annual sales above
£1.5m per annum predominantly for our Neptune based products. These again
demonstrate that Neptune is the material of choice for a number of EU based
OEM's.
· Gross margins increased as a result of continued operational efficiency
and material usage improvements. Particular improvements have been seen in
our German facility.
· Repayments continued on our CBILS loan and we were pleased to commence
repayment of our MEIF loan.
· Our flooring business showed a 17% sales improvement period on period.
We believe we are seeing the start of the recovery of this business although
it is unlikely to return to COVID-enhanced levels.
· The mid-term prospects for Autins (FY27 onwards) look very strong.
However, the business is facing some short-term challenges due to current
automotive demand levels.
Post Period End
· Following the resignation of Kamran Munir as Chief Financial Officer
announced on 18 November 2024, Des Dimitrov, Group Financial Controller is now
attending Board meetings to report on Group financial matters.
Andy Bloomer, Chief Executive, said:
"In my first six months as CEO of Autins Group plc, I have spent time getting
to know the business and the people who work here. I have found an
organisation full of talented people who work incredibly hard to deliver
products which solve our customers problems.
I have spent significant time with the team working on our go to market
strategy and our AuDuct, AuTrim and new Neptune products will provide
significant differentiation and cost savings in the future.
Like all automotive businesses, we are currently dealing with the uncertainty
of reduced demand and delayed new vehicle introduction from OEM's. We have
continued to manage our costs through headcount, procurement and operational
efficiencies. We believe we are well placed to weather this storm."
Adam Attwood, Chairman said:
"Looking at the longer term, we believe that the automotive market is showing
initial signs of improvement. OEM's are finalising platform strategies and
beginning to source for their future programmes. With the hard work done to
ensure our Neptune material is specified, there are significant opportunities
for Autins to gain more market share going forward. In particular, our key
UK OEM will be introducing its new all electric platform by 2027."
For further information please contact:
Autins Group plc
Andy Bloomer, Chief Executive Via SEC Newgate
Singer Capital Markets Tel: 020 7496 3000
(Nominated Adviser and Broker)
Sandy Fraser / Asha Chotai
SEC Newgate Tel: 020 7653 9850
(Financial PR)
Bob Huxford
Molly Gretton
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.
Chair's Statement
As we have changed our financial year end to 31 March, it is a year since our
last Annual Report and Accounts, and I would like to take this opportunity to
provide a full strategic update to clearly set out both the exciting
opportunities that the business has, as well as the short-term challenges that
we face.
The European automotive market
Over the past few years, the European automotive market, like many industries,
has faced macro headwinds (such as Covid and high inflationary costs). It
has also suffered from industry specific pressures such as semi-conductor
shortages but, most impactful, delays in new platform launches, as OEM
manufacturers grapple with the generational move to electric vehicles where
consumer demand has not yet caught up with Governmental enthusiasm.
The automotive market is a long-term business. For suppliers, there is the
opportunity to win contracts with longevity of supply (typically 6+ years),
subject to actual build volumes. However, the uncertainty created in recent
years from macro and micro factors, has meant that there has been a reduced
opportunity to make step changes for a business such as Autins.
Looking at the longer term, we believe that the automotive market is showing
initial signs of improvement. OEM's are finalising platform strategies and
beginning to source for their future programmes. With the hard work done to
ensure our Neptune material is specified, there are significant opportunities
for Autins to gain more market share moving forward. In particular, our key
UK OEM will be introducing its new all electric platform by 2027.
Autins journey since flotation
Autins floated on the AIM market in 2016, following the successful award of
high value per car nominations for two new car models that were forecast to
sell over 100,000 vehicles per annum for each model. In the event, the OEM's
expectations turned out to be significantly overstated, which placed the
business on the backfoot, compounded by the market factors stated above.
This resulted in us having to deploy a more defensive strategy in recent
years, with efficiency and cost control becoming key to ensure our survival.
However, despite the headwinds that we have faced, we have expanded strongly
in three areas; production of our patented Neptune material, development of
our European operations and expansion of our customer base.
Our flotation enabled us to purchase machinery to start the development and
manufacture of an exclusive, patented material, Neptune, for noise, vibration
and harshness (NVH) and acoustics absorption. Having the capability to
develop and manufacture our own material was thought to be, and has proven to
be, a key differentiator for the business, compared to its competitors. This
is especially true in our European markets.
The business has successfully grown in European markets, particularly in
Germany. This organic growth strategy has resulted in our German business
growing six-fold since flotation, to the €7.2m business that it is today,
despite the market challenges. Our Neptune material has been key to this
growth and has now been specified by a number of well-known European OEMs as
their NVH material of choice. This specification work is what will drive our
European business growth in the coming years.
Our Swedish business also continues to trade well, growing 19% since 2020 and
maintaining strong levels of profitability.
We have sought to diversify our customer base and now supply 75
customers across the UK and Europe. This diversification spreads our risk
and eases our reliance on any single customer.
Germany is also the location of our flooring business. Whilst this part of
the business has struggled with the economic downturn since the high COVID
demand, we now see the business stabilising and have a number of new
developments in the pipeline that will provide modest growth in the coming
years.
These achievements mean that the Group now has a much stronger and more
balanced operating platform from which to develop and grow into the future.
New products for Autins
The strategic ambition for the Group has always been to move to higher value,
more complex components for the automotive industry. Despite the financial
headwinds that we have faced, we have always considered research &
development (R&D) and new product development to be critical to our future
and we have continued to dedicate resources to product innovation. In recent
years, we have concentrated on the development of products that either can be
protected by intellectual property (IP) rights or that can widen our
addressable market. As a result of this investment, we are now introducing a
number of new and exciting products to the market.
AuDuct
A mono material automotive ducting system used to reduce energy consumption,
improve acoustic and thermal performance and significantly reduce OEM warranty
costs. We have been developing this product for over two years. We believe
that AuDuct is a patentable product, and we are currently progressing our IP
rights. We believe that AuDuct opens up a £60m+ potential addressable
annual market to the business. We are in discussions with a key OEM customer
which could lead to future nominations impacting from FY27 onwards but could
also lead to more immediate revenue streams. We have also had strong
interest from a Tier 1 customer to supply a similar solution to a prestige
OEM. This would also be for FY27 supply.
AuTrim
Currently our products are hidden from the cabin of a vehicle, as they are
under bonnet / body, in-boot or in-door solutions. We believe that there is
a growing opportunity to apply our skills and materials to A surface
(in-cabin) components. AuTrim enables our customers to achieve required NVH
benefits for the cabin with an integrated, in-cabin component. We are at an
early stage of introducing this product to our OEM customers, but we believe
that it will open up considerable new sales opportunities on future platforms.
Neptune products
We have channelled considerable R&D resources into our Neptune production
line over the past three years. We are now confident of finalising two key
developments by the end of this financial year.
Firstly, we believe that we can improve the production process of our core
product to enable significant efficiency improvements.
Secondly, we have also developed a new, mono-material version of Neptune made
from 100% polypropylene. This product will be branded Neptune-R. It will
have all the performance capability of our current Neptune material but will
be fully recyclable whilst containing up to 30% recycled content. We believe
this is the first material of its type and will be of particular interest to
our OEM customers who are looking to increase the recyclable content of their
vehicles.
Short term challenges for Autins
Largely as a result of the success of our R&D initiative, the mid-term
prospects for Autins (FY27 onwards) look very strong based on nominations
received, the new platforms that we are being invited to quote on and the new
products that we are introducing. However, the business is facing some
short-term challenges.
We have had to absorb a significant reduction of volumes from our major
customer that has required us to continue to focus on cost reductions to meet
our banking covenants. We have already had significant success in
controlling operating costs and reducing the costs of trading on AIM and we
are now actively considering changes to our operating footprint which could
deliver further significant savings without inhibiting our planned future
growth. In particular, we are looking at ways to recover significant fixed
cost overheads at our UK sites.
Board composition, plc costs and other plc matters
There have been two recent Board changes. Qu Li joined the Board in
September 2024 to represent the interests of our largest shareholder
Braveheart Investment Group plc (Braveheart). Her salary costs are met by
Braveheart . In November 2024, our CFO Kamran Munir left the business. In
the short term, the Board is confident that we can absorb this role within our
existing finance team whilst we assess our options. Des Dimitrov, who has
acted as Group Financial Controller since 2021, will attend Board meetings to
report on Group financial matters.
Over the past 18 months, we have actively sought to reduce Board salary costs
as it became increasingly clear that the original salary structure of the
Board had become inappropriate for the current circumstances of the
business. As a result of this initiative the forecast annualised run rate of
Board salary costs has reduced by £150k compared to 2023 calendar year. A
reduction of over 28%.
As well as Board salary costs, we have put a focus on reducing other costs
directly related to our AIM-listed status. Working with all of our advisers,
we have reduced the forecast annualised run rate of plc costs by £100k
compared to 2023. This has required additional work from all members of the
Board and I thank them for their on-going support and commitment.
In 2020, we withdrew forecasts from the market due to the turbulence within
the automotive market. We understand that this is an unsustainable position
for an AIM listed company and intend to reintroduce market guidance in tandem
with an update on the outcome for the financial period ending 31 March 2025.
We hope that this step and the positive outlook from FY27 onwards will allow
us to reengage with the market so that we can start using our market listing
as an accelerant for further growth.
Employees
As ever, I must thank our work force across the Group for their commitment,
resilience and willingness to embrace the changes that we have needed to
introduce to adapt the business to the changing market conditions. We are
truly lucky to have such a dedicated workforce.
I am also grateful to our CEO, Andy Bloomer, for the energy, empathy and
leadership he has shown since he assumed his role in April 2024. Andy's
in-depth knowledge of both the automotive industry and advanced materials has
brought more focus and clarity to the workforce as a whole.
Merger & Acquisition opportunities and growth by acquisition
We believe that the automotive supply chain will undergo significant
restructuring in the coming years. As part of our business-wide reviews over
the past couple of years we have considered the potential impact that this
could have on Autins. We have looked at opportunities for us to consolidate
but this has proved difficult based on our current share price and the lack of
liquidity in the market.
We very much hope that this position will change in the coming months and that
with re-engagement with the market, we can find opportunities to accelerate
our growth through acquisition, particularly in Europe.
Outlook
The Group believes that its core automotive market is stabilising and that
this will provide a period of stability to bed in the new initiatives set out
in this statement and to ensure that it maximises the opportunities that new
platforms offer from 2027 onwards.
The Board is comfortable that we can meet our banking commitments as they fall
due and remain covenant compliant, assuming that build volumes do not
deteriorate significantly from the levels currently forecast by our OEM
customers.
We expect our net losses to increase in the period to 31 March 2025.
Profitability is then expected to improve in H1 FY26 as new, major contracts
begin and we would expect the business to return to on-going net profitability
in H2 FY26.
In the next 6-12 months, the Group will be focussed on maximising new sales
opportunities on forthcoming OEM platforms, with the additional impetus from
our new AuDuct, AuTrim and Neptune-R products. The improved forward revenue
visibility associated with recent contract wins and pipeline opportunities has
informed the Board's intention to reintroduce market guidance in tandem with
an update on the outcome for the financial period ending 31 March 2025.
CEO review
Initial 6 months - Creating a strategy, making decisions
Since my appointment in April 2024, I have worked with the Autins leadership team and the board of directors to create our "Survive then Thrive" strategy. This strategy is about making the right choices today to ensure we are well placed for our future growth aspirations.
We have made a number of decisions about the day-to-day operation of the business and the strategic direction moving forward. We have worked on refining our go to market strategy, engaging with our customers to understand their needs and wants from a company like Autins and determining the best way for us to meet these needs in the future.
Significant efforts have been taken in improving our current Neptune materials from both a cost and performance perspective. In addition, we have continued to refine the next generation of Neptune, a fully recyclable version with significant recycled content. Our AuDuct and AuTrim products have continued development with several OEM's engaged in testing both products for future applications.
We have also spent time looking at our cost base, including people, procurement, PLC costs and current footprint. Savings have been made in all these areas to improve profit margins even after the volume reductions seen.
Difficult market conditions but margins improving due to careful cost control
Supply and demand issues persist for the UK and EU automotive industry. During the last trading period, our largest UK customer had a significant supply chain issue. This affected our revenues (£500k+ reduction) as the customer was unable to source key components to build its vehicles, changing builds and reducing volumes at very short notice also left it difficult for us to manage our costs.
As is well publicised, the automotive industry continues to struggle with the issues of low demand and technology uncertainty. Several of our customers have announced delays to new platforms as they determine whether to move to all electric or continue producing internal combustion engine vehicles. In the meantime, the vehicles being produced are no longer new and together with current economic uncertainty this is affecting demand for new vehicles.
Autins is well placed to win on new platforms as they are sourced and the £1.5m per annum in wins since our last trading update demonstrates that we are both competitive and manufacture products our customers want to buy.
In the automotive industry it is rare for new business to start immediately but we have several transfer opportunities we are working on which would make an immediate impact, we expect to have further news on these at our next trading update.
Continuing to invest
Despite the current issues we are seeing, in preparation for supplying the business we have already won, we have continued to invest in our German facility with new machinery valued at £250k due for delivery in December.
Our people making the difference
Since I have joined, I have continued to be surprised and delighted with the commitment, ingenuity and flexibility our people at Autins have shown. All employees have made me feel very welcome, been receptive to change and contributed their own thoughts and opinions. In my opinion, a company is made or broken by culture and I am proud to report that we have a very positive culture within Autins.
Financial Review
Revenue
Sales across the Group decreased by 17.3% to £9.79m (H2 23: £11.84m) driven
by a drop in production activity in the key automotive customers in the UK and
Germany. On a twelve-month basis the reduction of revenue was 5.5% to £21.44m
(FY23: £22.68m).
Sales through the European operations accounted for 37% of Group turnover in
the second six-month period of the current financial period, slightly down
from 38% in the comparative period in FY23. On a twelve-month basis they
decreased from 39% to 35%, primarily due to the reduction in the flooring
business in Germany.
Automotive sales decreased by 14.1% to £9.1m (H2 2023: £10.6m). On a
twelve-month basis Group automotive revenue was marginally higher than FY23
(FY24: £20.23m; FY23: £20.10m), a sign of improving stability in the
industry.
Revenue in the UK in the second six months decreased by 16.2% to £6.2m (H2
2023: £7.4m), with component revenue continuing to dominate as tooling
remains at low levels with OEMs continuing to delay new projects due to
uncertain demand and electrification legislation. On a twelve-month basis
our UK business was unchanged with sales at £13.9m.
Within our German entity automotive sales decreased by 8.0% to £2.3m (H2 23:
£2.5m), and flooring sales declined by 46.2% to £0.7m (H2 23: £1.3m).
Overall sales of our German subsidiary declined by 21.1% to £3.0m (H2 23:
£3.8m). On a twelve-month basis the automotive revenue of the German business
remained at the same level as FY23, however the flooring revenue was down by
53% for the same period. The reduction in flooring sales is driven by a drop
in flooring demand which was partly due to the volatility of the construction
sector in Europe. Monthly sales demand for flooring is now running at much
less than the run rate of the prior year and, whilst we don't see additional
reductions coming, we expect current demand to persist for the foreseeable
future.
Sweden automotive sales were at the same level as the comparative six-month
period at £0.70m (H2 23: £0.70m). On a twelve-month basis our Swedish
business grew its revenue by 15.4% to £1.5m (FY23: £1.3m).
Sales concentration of our largest customer decreased from 34.4% last year to
31.7% in H2 24, driven primarily by the reduction in demand from that
customer. For the twelve months it was an increase from 33.7% in FY23 to
34.4%.
Looking forward, contract wins were secured in Germany and the UK valued in
aggregate at in excess of £7.5m over lifetime with peak annual sales above
£1.5m per annum predominantly for our Neptune based products. Commencing in
2026, these again demonstrate that Neptune is the material of choice for a
number of European based OEM's. We also expect to see our previously
announced win (€2m per annum in Germany) with a well-known EV manufacturer
starting production in March 2025.
Gross margin
The actions taken to improve operational efficiencies and lower material
purchasing costs have continued to improve margins with an increase of 0.5
percentage points to 31.1% for H2 24 compared to the prior year period.
These actions had a more pronounced impact on a twelve-month basis with an
increase of 1.7% to 31.2%.
Adjusted EBITDA and operating profit
The H2 24 adjusted EBITDA was 45.6% lower at £0.44m (H2 23: adjusted EBITDA
of £0.81m) and adjusted operating loss of £0.56m (H2 23: adjusted operating
loss of £0.1m) are prior to exceptional costs. Exceptional costs relate to
the replacement of the CEO. On a twelve-month basis, EBITDA was 7.6% higher
at £1.26m (FY23: £1.17m) and the adjusted operating loss was £0.62m (FY23
adjusted operating loss of £0.75m).
Net finance expense
There is a gradual reduction in the bank interest expense as we continue
repaying our loans.
Taxation
Given the continuing economic conditions, none of the losses carried forward
are recognised in deferred tax balances, consistent with the judgement made in
September 2023.
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 £1.18m (FY23 £1.60m). Including £6.11m (FY23 £5.17m)
arising from IFRS 16 lease liabilities, the Group's net debt would be £7.29m
(FY23 £6.77m). Net debt has reduced as a result of the trading inflows
including a significant reduction in working capital balances. Cash and cash
equivalents at the period end were £1.68m (FY23: £2.09m).
The Group's UK HSBC facilities provided up to £3.5m (H2 23: £3.5m) of
invoice financing facility (subject to available accounts receivable
balances). Group cash headroom, being the sum of net cash at bank and residual
invoice financing capacity, was £3.47m (H2 23 £4.1m) at the period end. The
HSBC CBILS loan is being repaid quarterly, in accordance with its agreed terms
and is due to be fully repaid by July 2026. Maven Capital Partners, providers
of the MEIF loan, agreed in June 2024 to a revised repayment profile,
being £0.25m in each of July 2024, December 2024 and July 2025 with the
remaining £0.75m being deferred until January 2026. The HSBC CBILS loan
agreement contains financial covenants which have been adhered to since they
were renegotiated in June 2024.
Capital expenditure
The Group invested, excluding IFRS16 additions , £0.10m (H2 23: £0.45m) 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 up to £0.5m across the Group as we increase our production
capabilities for new volumes and new products.
Employees
In the UK, we continue working with a banked hours scheme to align surety of workers' pay against volatile customer demand patterns.
Production pay rates have been improved by more than 7.5% (linked to UK minimum wage increases) and overtime rates have also been strengthened to improve net take home pay, with pay banding and related multi-skilling also being improved.
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 the 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 this Interim Financial Information, the Board has considered
current and future trading and profit and cash flow forecasts through to March
2027 and assessed existing borrowings and available sources of finance. Lender
covenants and repayment profiles were renegotiated in June 2024 as noted
above. The Group's liquidity remains healthy, with cash headroom being in
excess of £3.1m as at 31 October, shortly prior to the reporting date.
The trading forecasts take into consideration:
· the current and expected demand schedules from the Group's key
automotive customers, changes in expected demand for flooring products in
Germany and the levels of enquiries for new business;
· the impact of current and future expected demand levels for new
vehicles, the migration to EVs and publicly available forward looking market
information on market sizes and dynamics;
· the current cost structure of the Group and an allowance for known
increases, for example in relation to additional investment and resources
required to fulfil new product and customer sales, and various projects to
improve efficiency in the operational and procurement processes; and
· the latest agreed lender repayment profiles together with a
consideration of the latest covenant requirements.
The key sensitivities in the trading forecasts are automotive revenue levels,
end market vehicle sales mix and the timing of orders placed by customers.
These sensitivities have been factored into the forecasts, and reasonable
contingency has also been modelled.
Having due regard to all the matters described above, the Board has 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 this
Interim Financial Information. The Board has therefore concluded to adopt the
going concern basis in preparing this Interim Financial Information.
Interim Consolidated Income Statement
Unaudited Unaudited Unaudited Audited
6 months 6 months Year Year
ended ended ended ended
Notes 30/09/2024 30/09/2023 30/09/2024 30/09/2023
£'000 £'000 £'000 £'000
Revenue 2 9,788 11,836 21,439 22,679
Cost of sales (6,744) (8,217) (14,757) (15,997)
Gross profit 3,044 3,619 6,682 6,682
Other operating income 3 6 6 6
Distribution and administrative expenses excluding exceptional costs (3,607) (3,723) (7,311) (7,434)
Exceptional costs 3 (23) - (197) -
Distribution and administrative expenses (3,630) (3,723) (7,508) (7,434)
Operating loss before exceptional costs (560) (98) (623) (746)
Exceptional costs (23) - (197) -
Operating loss (583) (98) (820) (746)
Finance expense (241) (248) (470) (501)
Share of post-tax profit of equity accounted
joint ventures - 11 - 5
Profit on disposal of interest in joint venture - 201 - 201
Loss before tax (824) (134) (1,290) (1,041)
Tax credit 35 120 45 128
Loss after tax for the period (789) (14) (1,245) (913)
Earnings per share for loss attributable to the owners of the parent during
the period
Basic (pence) 4 (1.45)p (0.026)p (2.28)p (1.67)p
Diluted (pence) 4 (1.45)p (0.026)p (2.28)p (1.67)p
Interim Consolidated Statement of Comprehensive Income
Unaudited Unaudited Unaudited Audited
6 months ended 6 months ended Year ended Year ended
30/9/24 30/9/23 30/9/24 30/09/23
£'000 £'000
£'000 £'000
Loss after tax for the period (789) (14) (1,245) (913)
Other comprehensive expense:
Items that may be reclassified subsequently to
profit and loss:
Currency translation differences 15 2 8 (7)
Other comprehensive income/(expense)
for the period 15 2 8 (7)
Total comprehensive expense
for the period (774) (12) (1,237) (920)
Interim Consolidated Statement of Financial Position
Unaudited Audited
As at 30/9/24 As at 30/9/23
£'000 £'000
Non-current assets
Property, plant and equipment 7,914 8,407
Right-of-use assets 5,171 4,302
Intangible assets 2,703 2,839
Total non-current assets 15,788 15,548
Current assets
Inventories 1,781 2,343
Trade and other receivables 3,344 4,275
Cash at bank 1,678 2,090
Total current assets 6,803 8,708
Total assets 22,591 24,256
Current liabilities
Trade and other payables 3,943 4,468
Loans and borrowings 1,178 1,306
Lease liabilities 1,152 889
Total current liabilities 6,273 6,663
Non-current liabilities
Trade and other payables 94 99
Loans and borrowings 1,684 2,387
Lease liabilities 4,962 4,280
Deferred tax liability - 12
Total non-current liabilities 6,740 6,778
Total liabilities 13,013 13,441
Net assets 9,578 10,815
Equity attributable to equity holders of the
Company
Share capital 1,092 1,092
Share premium account 18,366 18,366
Other reserves 1,886 1,886
Currency differences reserve (139) (147)
Accumulated losses (11,627) (10,382)
Total equity 9,578 10,815
Interim Consolidated Statement of Changes in Equity
Unaudited Share capital Share premium account Other reserves Currency differences reserve Profit and loss Total
£'000
£'000 £'000 £'000 account equity
£'000 £'000
At 1 October 2023 1,092 18,366 1,886 (147) (10,382) 10,815
Comprehensive expense for the period
Loss for the period - - - - (1,245) (1,245)
Other comprehensive income - - 8 - 8
Total comprehensive expense for the period - - - 8 (1,245) (1,237)
At 30 September 2024 1,092 18,366 1,886 (139) (11,627) 9,578
Share capital Share premium account Other reserves Currency differences reserve Profit and Total
£'000
£'000 £'000 £'000 loss equity
account £'000
£'000
At 1 October 2022 1,092 18,366 1,886 (140) (9,469) 11,735
Comprehensive expense for the year
Loss for the period - - - - (913) (913)
Other comprehensive income - - - (7) - (7)
Total comprehensive expense for the year - - - (7) (913) (920)
At 30 September 2023 1,092 18,366 1,886 (147) (10,382) 10,815
Share capital Share premium account Other reserves Currency differences reserve Profit and loss Total
£'000
£'000 £'000 £'000 account equity
£'000 £'000
At 1 April 2023 1,092 18,366 1,886 (154) (10,838) 10,352
Comprehensive expense for the period
Loss for the year - - -- - (789) (789)
Other comprehensive income - - 15 - 15
Total comprehensive expense for the period - - - 15 (789) (774)
At 30 September 2024 1,092 18,366 1,886 (139) (11,627) 9,578
Audited Share capital Share premium account Other reserves Currency differences reserve Profit and Total
£'000
£'000 £'000 £'000 loss equity
account £'000
£'000
At 1 April 2022 1,092 18,366 1,886 (149) (10,368) 10,827
Comprehensive expense for the year
Loss for the year - - - - (14) (14)
Other comprehensive expense - - - 2 - 2
Total comprehensive expense for the year - - - 2 (14) (12)
At 30 September 2023 1,092 18,366 1,886 (147) (10,382) 10,815
Interim Consolidated Statement of Cash Flows
Unaudited Unaudited Unaudited Audited
6 months ended 6 months ended Year ended Year ended
30/9/24 30/9/23 30/9/24 30/09/23
£'000 £'000
£'000 £'000
Cash flows from operating activities
Loss after tax (789) (14) (1,245) (913)
Adjustments for:
Income tax (35) (120) (45) (128)
Finance expense 241 248 470 501
Depreciation of property, plant and equipment 375 352 724 895
Depreciation of right-of-use assets 563 433 991 817
Amortisation of intangible assets 65 118 164 199
Profit on disposal of interest in joint venture - (201) - (201)
Share of post-tax profit of equity accounted joint ventures - (11) - (5)
420 805 1,059 1,165
Decrease/(increase) in trade and other receivables 362 527 811 (723)
Decrease/(increase) in inventories 323 (379) 530 291
(Decrease)/increase in trade and other payables (530) 756 (397) 1,274
Cash flows from operations 575 1,709 2,003 2,007
Income taxes (paid)/received (2) 8 99 67
Net cash flows from operating activities 573 1,717 2,102 2,074
Investing activities
Purchase of property, plant and equipment (103) (449) (196) (531)
Purchase of intangible assets (15) (7) (43) (82)
Proceeds from disposal of tangible fixed assets - 118 - 118
Proceeds from disposal of interest in joint venture - 180 - 180
Net cash used in investing activities (118) (158) (239) (315)
Financing activities
Interest paid (241) (256) (470) (501)
Bank loans repaid (558) (162) (866) (179)
Principal paid on lease liabilities (468) (466) (915) (851)
Hire purchase finance advanced 59 205 59 205
Hire purchase agreements repaid (34) (49) (72) (110)
Net cash flows used in financing activities (1,242) (728) (2,264) (1,436)
Net (decrease)/increase in cash and cash equivalents 831
(787) (401) 323
Cash and cash equivalents at beginning
of the year 2,472 1,273 2,090 1,786
Exchange losses on cash and cash equivalents (7) (14) (11) (19)
Cash and cash equivalents at end of the year (all cash balances)
1,678 2,090 1,678 2,090
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
Autins Group plc has changed its year end from September to March and so the next Annual Report and Accounts will be prepared for the 18 months ending 31 March 2025. This interim consolidated financial information covers the six and 12 months ended 30 September 2024 and the equivalent comparative periods.
In preparing this interim financial information, the Board have considered the
impact of any new standards or interpretations which will become applicable
for the FY25 Annual Report and Accounts which deal with the 18 month period
year ending 31 March 2025 and there are not expected to be any changes in the
Group's accounting policies compared to those applied at 30 September 2023.
A full description of those accounting policies are contained within our FY23
Annual Report and Accounts which are available on our website (Autins FY23
ARA).
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 2023.
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 18 months ending 31 March
2025.
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 30 September 2024 and 30
September 2023 and the 12 months ended 30 September 2024 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
2023 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 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 Unaudited Audited
6 months ended 30/9/24 6 months ended 30/9/23 Year ended Year ended
£'000 £'000 30/9/24 30/09/23
£'000 £'000
Revenue arises from:
Component sales 9,717 11,722 21,267 22,513
Sales of tooling 71 114 172 166
9,788 11,836 21,439 22,679
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. The
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 FY23 annual report and accounts.
The Group evaluates performance on the basis of operating (loss)/profit.
6 months ended September 2024 Total
Automotive NVH Others £'000
£'000 £'000
Group's revenue per Consolidated
Statement of Comprehensive Income 9,098 690 9,788
Depreciation 938
Amortisation 65
Segment operating loss (553) (30) (583)
Finance expense (241)
Group loss before tax (824)
As at 30/9/24
Automotive NVH Others Total
£'000 £'000 £'000
Additions to non-current assets 1,998 - 1,998
Reportable segment assets/
Total Group assets 22,591 - 22,591
Reportable segment liabilities/
Total Group liabilities 13,013 - 13,013
Segmental information (continued)
6 months ended September 2023 Total
Automotive NVH Others £'000
£'000 £'000
Group's revenue per Consolidated
Statement of Comprehensive Income 10,606 1,230 11,836
Depreciation 785
Amortisation 118
Segment operating loss (63) (35) (98)
Finance expense (248)
Share of post tax profit of equity accounted
joint venture 11
Profit on disposal of interest in joint venture 201
Group loss before tax (134)
As at 30/9/23
Automotive NVH Others Total
£'000 £'000 £'000
Additions to non-current assets 1,068 - 1,068
Reportable segment assets/
Total Group assets 24,256 - 24,256
Reportable segment liabilities/
Total Group liabilities 13,441 - 13,441
Segmental information (continued)
Automotive Year Ended 30/9/24 Total
NVH Others £'000
£'000 £'000
Group's revenue per Consolidated
Statement of Comprehensive Income 20,172 1,267 21,439
Depreciation 1,715
Amortisation 164
Segment operating loss (739) (81) (820)
Finance expense (470)
Group loss before tax (1,290)
Automotive As at 30/9/24
NVH Others Total
£'000 £'000 £'000
Additions to non-current assets 2,119 - 2,119
Reportable segment assets/
Total Group assets 22,591 - 22,591
Reportable segment liabilities/
Total Group liabilities 13,013 - 13,013
Automotive Year Ended 30/9/23 Total
NVH Others £'000
£'000 £'000
Group's revenue per Consolidated
Statement of Comprehensive Income 20,074 2,605 22,679
Depreciation 1,712
Amortisation 199
Segment operating loss (687) (59) (746)
Finance expense (501)
Share of post-tax profit of equity accounted
joint venture 5
Profit on disposal of joint venture interest 201
Group loss before tax (1,041)
Automotive As at 30/9/23
NVH Others Total
£'000 £'000 £'000
Additions to non-current assets 1,225 - 1,225
Reportable segment assets/ 24,256 - 24,256
Total Group assets
Reportable segment liabilities/
Total Group liabilities 13,441 - 13,441
Reporting of external revenue by location of customers is as follows:
Unaudited Unaudited Unaudited Audited
6 months ended 30/9/24 6 months ended 30/9/23 Year ended Year ended
£'000 £'000 30/9/24 30/09/23
£'000 £'000
United Kingdom 5,348 6,662 11,916 12,832
Germany 2,230 3,182 4,791 6,434
Sweden 307 343 682 709
Other European 1,859 1,545 3,985 2,595
Rest of the World 44 104 65 109
9,788 11,836 21,439 22,679
3 Exceptional costs
Exceptional costs in the six months and year ended 30 September 2024 relate to the change in chief executive including recruitment costs.
4 Earnings per share
Unaudited Unaudited Unaudited Audited
6 months ended 30/9/24 6 months ended 30/9/23 Year ended Year ended
£'000 £'000 30/9/24 30/09/23
£'000 £'000
Loss used in calculating basic and
diluted earnings per share (789) (14) (1,245) (913)
Weighted average number of £0.02 shares
for the purpose of:
- basic earnings per share ('000) 54,601 54,601 54,601 54,601
- diluted earnings per share ('000) 54,601 54,601 54,601 54,601
Basic and diluted earnings per share (pence) (1.45)p (0.026)p (2.28)p (1.67)p
Loss per share is calculated based on the share capital of Autins Group plc
and the earnings of the Group for all periods. There are no potentially
dilutive options in place at 30 September 2024 (2023: options over 2,523,648
ordinary shares with vesting dependent on meeting a combination of EBITDA and
share price targets over the period to September 2023). Any share options in
issue are currently anti-dilutive.
5 Right of use assets and liabilities
During H2 24 there were additions of £1,878,000 to right of use assets with a corresponding increase to liabilities, primarily as a result of a rent review increase agreed on the main UK property lease together with new three year commitments made in respect of property leases in Germany and Sweden.
6 Share capital
The total number of ordinary shares in issue since December 2022 is
54,600,984.
7 Taxation
The tax credit for the period reflects only the deferred tax related to
amortisation of intangible assets and R&D related tax credits in the UK.
Given the continuing economic and market conditions, losses carried forward
are not yet recognised in deferred tax balances, consistent with the judgement
made at September 2023.
8 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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