Autins shares tumble on second-half struggles
Acoustic and thermal insulation specialist Autins Group said in a trading update on Monday that group sales for the second half were similar to the first six months.
The AIM-traded firm said that there was, however, a reduction in the fourth quarter sales rate, primarily as a result of further production line disruption at its major customer due to supply-side restrictions on the availability of semiconductors, which was expected to continue through the first half of the new financial year.
Input cost inflation continued throughout the second half of the 12 months ended 30 September, which increased pressure on gross margins.
The company’s unaudited EBITDA loss for the second half was expected to be in the region of £1m, widening from £0.3m in the first six months.
Autins said it absorbed £1.3m of cash in the second half, in line with the £1.3m in the first half, excluding the net proceeds from the December share placing.
“In response to the further delay in the recovery of the automotive market and input costs inflation, the group is taking actions to reduce operational costs and improve profitability,” the board said in its statement.
“The group has commenced significant restructuring actions in the UK and concluded a number of key commercial discussions that help to restore gross margins.
“These initiatives will improve profitability immediately and, as a result, losses are expected to significantly reduce in the short term and the group will be better positioned to take advantage of a future recovery of the European automotive market.”
Autins Group ended the year with net debt of £2.4m, narrowing from £2.7m year-on-year, while cash and cash equivalents available rose to £1.5m from £1.3m.
At 1103 BST, shares in Autins Group were down 35.86% at 8.98p.
Reporting by Josh White at Sharecast.com.