REG - Autins Group PLC - Sale of Interest in Joint Venture

AutinsAnnouncement

29/09/2023 16:15

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RNS Number : 2326O  Autins Group PLC  29 September 2023

29 September 2023

 

Autins Group plc

("Autins" the "Company" or the "Group")

 

Sale of Interest in Joint Venture

 

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, is
pleased to announce that it has restructured its approach to sourcing of foam
products in the UK and as a result has sold its 50 per cent. interest in its
joint venture, Indica Automotive Limited (the "Sale"), for a cash
consideration of £300,000.

 

The Board believes the Sale to Autins JV partner Indica Industries PV ("JV
Partner") represents a positive outcome for all parties, as the foam business
is core to the JV Partner who will continue to supply and it allows Autins to
release cash from this investment.  Furthermore, a revised purchasing
agreement provides surety on terms and conditions and product supply for
existing fixed life programmes, whilst creating more optionality for future
sourcing of products and solutions development. Indica Industries is
headquartered in India and had a net worth of INR 2.6bn as at 31 March 2022.
Autins currently remains Indica Automotive's most significant customer.  The
proceeds of the Sale will be used within the Group's general working capital
and growth plan requirements.

 

Indica Automotive's operating loss for FY22 was £54,000 and Autins recorded a
loss of £26,000 in FY22 in respect of its share of post-tax loss of Indica
Automotive. Indica Automotive's reduced financial performance against prior
profitable years reflected the volume impact of the semi-conductor supply
constraints reducing end customer demand and some significant stock
write-offs. In FY23 Indica's unaudited year to date financial statements show
marginally positive profit before tax, and as at 31 March 2023, Autins
investment in Indica Automotive was valued at £68,000, accordingly Autins
will record a material profit from the Sale.

 

 

 

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)

 James Moat / 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, 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.

 

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