TIDMAUTG
RNS Number : 0262Z
Autins Group PLC
12 December 2017
12 December 2017
Autins Group plc
(the "Company" or the "Group")
Audited Final Results for the year ended 30 September 2017
Autins Group plc (AIM: AUTG), a leading designer, manufacturer
and supplier of acoustic and thermal insulation solutions for the
automotive sector, is pleased to announce its audited results for
the year ended 30 September 2017.
Financial Highlights
-- Revenue increased to GBP26.4 million (FY2016: GBP20.4 million)
-- Gross Profit increased to GBP9.0 million (FY2016: GBP6.5 million)
-- Adjusted EBITDA(1) increased to GBP2.0m (FY2016: GBP1.4m)
-- Adjusted operating profit(1) increased to GBP1.5m (FY2016: GBP0.9m)
-- Profit After Tax increased to GBP0.4 million (FY2016: GBP0.3 million)
-- Net debt(2) GBP2.0 million (FY2016: Net cash GBP3.3 million)
-- Earnings per share decreased to 1.82 pence per share (FY2016: 2.03 pence per share)
-- Proposed final dividend of 0.8p per share (FY2016: Nil)
1: Adjusted EBITDA excludes exceptional costs of GBP0.5m
(FY2016: Nil), additional IPO related costs of GBP0.1m (FY2016:
GBP0.2m) and GBP0.6m (FY2016: GBP0.3m) of non recurring Neptune
start up costs. Adjusted operating profit additionally excludes
GBP0.2m of amortisation in both years.
2: Cash less loan notes, bank financing and hire purchase
arrangements
Operational Highlights
-- Strong growth across all the Group's operations
-- Neptune product gaining traction directly through OEMs and
through Tier 1 channels with orders in the year awarded across 8
OEMs, 19 vehicles, and well over 100 different parts
-- Good progress in Germany and Sweden, with both delivering a profitable outturn:
- Germany won a multi-platform part for a major European automotive group
- Sweden won multiple parts on existing and newly launched programmes for a major European OEM
-- Continued investment for growth focused on: research, test and product development; advanced manufacturing; and continued strengthening of our organisation and capabilities
-- Non-automotive sales continued to show steady double-digit growth year-on-year
Adam Attwood, Chairman, said:
"We have delivered strong top line growth in the year and the
Board expects that this will continue. We are confident that 2018
will be a period of significant progress for Autins as we focus on
implementing our detailed business plans designed to realise the
full potential of the Group."
For further information please contact:
Autins Group plc Via Newgate
Adam Attwood, Non-Executive
Chairman
Michael Jennings, Chief Executive
James Larner, Chief Financial
Officer
Cantor Fitzgerald Europe Tel: 020 7894 7000
(Nominated Adviser and Broker)
Philip Davies
Will Goode
Newgate Communications Tel: 020 7653 9850
(Financial PR)
Adam Lloyd
Ed Treadwell
James Browne
About Autins
Autins specialises in the design, manufacture and supply of
acoustic and thermal insulation solutions primarily in the
automotive sector but with an increasing focus on other sectors,
including, flooring, building and wider industrial
applications.
The Group is one of the leading suppliers of noise and heat
management products in the automotive market, producing and
supplying over two million parts per month to customers including
some of the world's leading vehicle manufacturers.
Chairman's and Chief Executive's statement
We have delivered strong top line growth in FY2017 and the Board
expects that this will continue in FY2018. Our ongoing investment
programmes will enable the Group to sustain this growth in the
long-term through a better product range along with better test and
manufacturing facilities to better serve our growing customer base
and do so profitably.
Performance
We are pleased to report our first full year results since our
IPO in August 2016, which show strong growth in revenues, up by 29%
to GBP26.4 million (FY2016: GBP20.4 million), and gross profit,
ahead 38% to GBP9.0 million (FY2016: GBP6.5 million). In line with
our strategic plans, this supported further investment in the
business: in which we continue to strengthen our management and key
staff as we build core capabilities in research, test, and
engineering and, similarly, we continue to invest in our core
manufacturing processes.
At an operating level, each region has made progress. Having
become wholly-owned at the time of the IPO, both Germany and Sweden
have achieved promising wins with important OEMs. This, combined
with further improvements in the year, has meant that our
operations in both countries delivered profits in the year. Coupled
with access to strategically important European OEMs and large
addressable markets, Autins is well placed for a bright future in
Germany and Sweden.
In the UK, we have re-aligned our manufacturing processes across
our sites in Rugby and Tamworth to better balance our capacity and
the respective sites' utilisation levels. This will continue in
FY2018 as we focus on ensuring that our operational performance not
only meets and exceeds our customers' requirements but also
provides us with a competitive advantage.
We have made solid progress in the year and remain committed to
delivering improved financial performance whilst being fully
focused to stay on track with our ambitious long-term growth
plans.
Market
Looking at the automotive market at a macro level, the pace and
breadth of innovation in vehicles is considerable. We just have to
look at the changing landscape of electronics, powertrain,
connectivity, smart design, not to mention related digital
services. There are significant implications for the car's interior
environment as a result, with major challenges arising from an
engineering and value perspective. Autonomous vehicles will only
heighten this.
These increasing innovation challenges are re-shaping
conventional automotive structures and relationships across OEMs
and the tiers of suppliers as well as between the traditional
automotive companies and the 'purer' technology companies. The
consequential trends may be to drive consolidation and M&A
activity but it will also likely encourage sharing of platforms and
manufacturing along with outsourcing certain design and technology
development. This will inevitably force more critical and focused
thinking on what is core to the OEMs and the tiers of suppliers.
Our strategy at Autins is to offer clearly differentiated and
specialised products that not only play to our core capabilities
but also provide a clear advantage to the customer. We plan to do
this by partnering with OEMs and Tier 1s alike, so that we can
increasingly become and be seen as their NVH partner; supporting
them throughout their programme life-cycle, solving their
problems.
Strategy
Our strategy has been refreshed as part of our annual business
planning cycle and centres on our intent to drive sustainable
profitable growth. Our focus is for Autins to be a specialist
solutions provider and to operate as one company in everything we
do. Our investment programme to fuel our growth is well aligned
with this whether it is in new product development and testing
capability or in our facilities and manufacturing processes and
capacity.
These respective investments in capability and capacity position
Autins to capitalise on the significant growth potential in our
target markets. Our initial priority has been to ensure that our
growth path is clear, focused and being followed and furthermore,
to establish a business model that can deliver on this growth
potential and be able to scale effectively. In light of this, our
operating performance needs to be continuously improving so that we
see these scaling benefits reach all the way to the bottom
line.
Dividend
The Board is proposing a first final dividend of 0.8 pence per
share. The Board continues to adopt a progressive dividend policy
alongside continuing investment in the business. The dividend will
be paid to shareholders on the register on 19 January 2018 on 16
February 2018.
People
We have outstanding employees and, on behalf of the Board, we
would like to thank them all for their ongoing support and
commitment to Autins. Our success is built upon a foundation of
managing to harness and deploy their experience and expertise
across the entire Group, as one company.
Outlook
In the near term, our results will be weighted to the second
half of the year. This reflects our ongoing growth in conjunction
with our continued investment. Across the full year, we are
confident that 2018 will be a period of significant progress for
Autins as we work to realise the full potential of the Group.
Adam Attwood Michael Jennings
Chairman Chief Executive
12 December 2017
Financial Review
Revenue
The Group continued to grow with total revenue up 29% at GBP26.4
million (FY2016: GBP20.4 million).
Sales of components increased by 26% to GBP24.8 million (FY2016:
GBP19.7 million). Direct sales to the Group's largest customer
accounted for 64% of Group revenues (FY2016: 65%). The Board
expects this concentration to reduce in the coming year as revenues
from new customer programmes begin volume production.
Within component manufacturing, flooring revenue grew by 50% to
GBP0.9m (FY2016: GBP0.6m) with the Swedish DBX business acquired in
April 2016 adding GBP0.1m year on year.
The UK component manufacturing business continued to be a major
driver in terms of organic growth, with sales increasing by 20% to
GBP22.0 million (FY2016: GBP18.4 million). Non-automotive
components revenue in the UK increased by GBP0.2m with ongoing
development of the product range to allow access to new
markets.
Having secured new work with a major European OEM, German
automotive revenues have more than doubled to GBP1.1m in the year.
The Board expect continued growth in the coming year as this
contract is implemented across more of the OEMs plants.
Swedish automotive revenues were GBP0.8m (FY2016: GBP0.3m)
having benefitted from a combination of new platform launches in
the second half of 2017 and a full year's trading following the
acquisition of the remaining 51% on 20 April 2016.
Sales of tooling increased as anticipated to GBP1.5 million
(FY2016: GBP0.6 million), with a number of new pressed and moulded
components developed and entered into volume production.
Gross margin
Component gross margins increased to 34.6% (FY2016: 33.1%) with
the continued benefit of new higher value added contracts secured
in previous years.
The Board continues to seek opportunities to improve margins
with commercial focus on higher added value products and materials,
development of a common operational strategy and targeted capital
investments designed to improve efficiency.
EBITDA and operating profit
Adjusted EBITDA was GBP2.0m (FY2016: GBP1.4m) with an adjusted
operating profit of GBP1.5m (FY2016: GBP1.0m) after excluding
exceptional and non recurring costs as noted below. Management
believe these adjusted measures are more indicative of the
underlying business.
Unadjusted EBITDA was GBP0.9m (2016: GBP0.9m) after charging
GBP0.55m (FY16: GBP0.2m) of exceptional costs, and GBP0.6m (FY2016:
GBP0.3m) of non-recurring incremental start-up costs for the
Neptune facility.
Exceptional and non-recurring items
The Group incurred exceptional remuneration and associated costs
of GBP0.2m (FY2016: GBPnil) as a result of the resignation of the
former Chief Executive Officer, Jim Griffin, on 1 February 2017,
and subsequent appointment of Michael Jennings.
Following the change of Chief Executive, a review of group
staffing was conducted to ensure it was aligned to the Group's
strategic growth ambitions and a one company culture. This resulted
in a further GBP0.1m of exceptional costs in the year (FY2016:
GBPnil).
During the year, the Group incurred GBP0.2m (FY2016: GBPnil) of
costs performing critical repairs to production presses within the
Rugby facility. Whilst the Board believe that these repairs arose
from an inherent design fault, this is being contested by the
equipment manufacturer and the repairs have therefore been expensed
as incurred. We continue to work with independent assessors and the
equipment manufacturer to achieve an agreed resolution.
Further legal and professional costs of GBP0.1m were incurred in
relation to the Group's IPO in the year (FY2016: GBP0.2m).
Amortisation of GBP0.2m (FY2016: GBP0.2m) in relation to
acquired intangible assets has been excluded from adjusted
operating profit.
The Group's Neptune production facility has, whilst working
towards full operational status, incurred further non-recurring
start-up costs for Neptune of GBP0.6m (FY2016: GBP0.3m) in the
year. This has been part of an extended commissioning period of the
plant with ongoing refinement and commercialisation of the Neptune
product for use in European OEM markets. Attributable commissioning
costs in FY17 totalled GBP0.4m and have been capitalised. Our
current completion schedule indicates we will bring the asset into
full use from 1 January 2018, at which time depreciation will
commence in line with our accounting policies.
Joint ventures
The Group's current year share of joint venture activities
relates solely to Indica Automotive, a foam conversion business
based in Northampton. The comparative year included pre-acquisition
losses at the Group's Swedish business prior to its full
acquisition on 20 April 2016.
Indica Automotive's turnover increased by 43% to GBP2.6m
(FY2016: GBP1.8m) with a profit before tax of GBP0.5m (FY2016:
GBP0.4m) after GBP0.05m of exceptional costs (FY2016: GBPNil). The
Group's share of profit after tax was GBP0.2m (FY2016: GBP0.1m).
The business continues to invest in customer facing staff and
capital equipment in support of profitable growth and
diversification away from the Group who remain the current largest
customer.
Currency
The Group trades in currencies other than sterling, its base
currency, due to its three overseas operations and certain raw
material supplies. It therefore has a level of operational
transactions conducted in Swedish krona and euro. The Group is also
subject to currency variation in the re-translation of the results
and net assets of those overseas operations.
As a result of the Neptune capital purchase stage payments, the
currency with the greatest impact on Group results in the year has
been the US dollar. The raw material supply agreement with IkSung
means that there will be an ongoing potential transactional risk on
our results from the US dollar as Neptune volumes increase.
The Group held no forward currency contracting arrangements at
either year-end. During the current year the Group held a forward
purchase contract for US dollar in relation to the final IkSung
stage payment.
The Group's structure and trading balance are such that net
currency exposure is naturally reduced. The Board will continue to
monitor the situation and use derivatives to manage the Group's
foreign currency risks where the underlying operational business or
significant capital expenditure increase exposure. Transactions of
a speculative nature are, and will continue to be, prohibited.
Net finance expense
The Group applied cash from the IPO to significantly reduce bank
debt in the prior year and this year settled GBP1.1m of loan notes
outstanding from an earlier buyout of minority shareholders. As a
result of this reduced gearing, net finance expense for the year
fell significantly to GBP0.1m (FY2016: GBP0.6m).
Taxation
The lower effective tax rate reflects enhanced R&D claims
for the current and prior periods, together with utilisation and
recognition of brought forward tax losses.
The creation of a dedicated technical Research and Development
('R&D') team together with an expectation of ongoing
development of the Neptune product mean that the effective tax rate
is likely to remain below the UK statutory level at least in the
short term.
The Group's overseas subsidiaries continue to have significant
taxable losses available. This will, in the short-term, offset
expected trading profits in Germany and Sweden that both have
higher corporation tax rates than the UK. As a result of trading in
the year and forecasts for FY2018, the Group has recognised a
deferred tax asset of GBP0.2m (FY2016: GBP0.1m) in relation to
these losses. The Group has a further GBP0.1m (2016: GBP0.2m)
unrecognised tax asset in respect of losses in the German
subsidiary.
Earnings per share
The weighted average number of shares in issue has increased by
7.58m as a result of new shares issued in relation to the Group's
IPO on 22 August 2016.
As a result, despite the increased level of profit in the year,
earnings per share decreased to 1.82p per share (2016: 2.03p per
share).
Had the same weighted average number of shares been applied to
the prior year then the FY2016 EPS comparative would have been 1.3p
per share.
Dividends
The Board propose a final dividend of 0.8p per share for the
current year. Our dividend policy remains to balance reinvestment
in support of the Group's growth strategy whilst progressively
growing returns in line with earnings.
Net (debt)/cash and working capital
The Group ended the year with net debt (cash and cash
equivalents less loan notes, bank financing and hire purchase
agreements) of GBP2.0m (FY2016: net cash GBP3.3m) that included
cash and cash equivalents of GBP1.4m (FY2016: GBP6.3m). During the
year cash was applied to settle loan notes of GBP1.1m, make the
final capital stage payments on the Neptune line of US$2.2m as well
as further capital investments and fund working capital. The Group
has GBP0.9m (FY2016: GBP1.3m) of hire purchase agreements in the UK
and GBP0.4m (FY2016: GBP0.5m) of long term, asset-backed bank loans
in Sweden. These reflect the investments in capacity for growth
across the Group prior to the IPO and refinance to HSBC. There were
no new hire purchase agreements and GBP0.1m of new asset backed
loans in the year.
As reported last year, the Group had, in support of IPO costs,
secured GBP0.25m of short term extended arrangements with certain
key suppliers which were normalised in the year.
Debtors increased in the year reflecting the Group's growth,
with the position magnified by the GBP2m year-on-year increase in
component revenue in the final quarter, as well as GBP0.25m higher
tooling sales.
As part of the IPO process, the Group refinanced with HSBC in
November 2016 having secured additional facilities to support
growth and implementing a central banking platform that allows
greater central cash and debt management. The HSBC facilities come
without formal covenants and are over a three-year term to November
2019.
The Directors are satisfied that future funding requirements for
the Group's planned growth are adequately supported by these new
banking arrangements.
Acquisitions, goodwill and intangible assets
There were no acquisitions made in the year, but the fair values
attributed to the assets of our Swedish entity were revised during
the period resulting in an increase to non separable goodwill.
Capital expenditure
Total capital additions were GBP2.6m (FY2016: GBP5.0m) in the
year. The Group continued to invest in plant for capacity expansion
for growth, as well as investment in laboratory and specialist
testing equipment for the Group's Technical Centre and R&D
team.
In bringing the Neptune operation towards full operational
capability, a further GBP0.85m was spent in the year on
commissioning and line improvements.
Financial risk management
Details of our financial risk management policies will be
outlined within the Annual Report and Accounts.
James Larner
Chief Financial Officer
12 December 2017
Consolidated income statement
For the year ended 30 September
2017 2017 2016
Note GBP000 GBP000
Revenue 2 26,357 20,378
Cost of sales (17,327) (13,845)
Gross profit 9,030 6,533
Other operating income 121 291
Distribution expenses (871) (693)
--------------------------------------- ---- -------- --------
Administrative expenses excluding
exceptional costs and amortisation (7,384) (5,410)
Exceptional IPO related administrative
expenses (net) (92) (182)
Amortisation of acquired intangible
assets (237) (237)
Other exceptional operating
costs (458) -
Total administrative expenses (8,171) (5,829)
--------------------------------------- ---- -------- --------
Operating profit 3 109 302
Finance expense 4 (92) (558)
Share of post-tax profit of
equity accounted joint ventures 190 115
Gain on existing interest on
acquisition of control - 327
Profit before tax 207 186
Tax credit 196 112
Profit after tax for the year 403 298
Attributable to equity holders
of 403 295
the parent company
Non-controlling interest - 3
403 298
Earnings per share for profit
attributable to the owners
of the parent during the year
Basic (pence) 5 1.82p 2.03p
Diluted (pence) 5 1.82p 2.03p
======== ========
All amounts relate to continuing operations.
Consolidated statement of comprehensive income
For the year ended 30 September
2017 2017 2016
GBP000 GBP000
Profit after tax for the year 403 298
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss
Currency translation differences
Attributable to equity holders
of the parent company (15) (88)
Non-controlling interest - (7)
-------- --------
Total currency translation
differences (15) (95)
-------- --------
Total comprehensive income
for the year 388 203
Attributable to equity holders
of 388 207
the parent company
Non-controlling interest - (4)
388 203
Consolidated statement of financial position
As at 30 September 2017 2017 2016
GBP000 GBP000
Non-current assets
Property, plant and equipment 10,869 8,808
Intangible assets 3,837 3,706
Investments in equity-accounted
joint ventures 243 206
Deferred tax asset 159 -
Total non-current assets 15,108 12,720
Current assets
Inventories 1,967 1,565
Trade and other receivables 7,378 4,955
Cash in hand and at bank 1,625 6,449
Total current assets 10,970 12,969
Total assets 26,078 25,689
Current liabilities
Trade and other payables 5,851 6,300
Loans and borrowings 2,947 994
Total current liabilities 8,798 7,294
Non-current liabilities
Trade and other payables 123 -
Loans and borrowings 718 2,119
Deferred tax liability 496 559
Total non-current liabilities 1,337 2,678
Total liabilities 10,135 9,972
Net assets 15,943 15,717
Equity attributable to
equity
holders of the company
Share capital 442 442
Share premium account 12,938 12,938
Other reserves 1,886 1,886
Currency differences reserve (103) (88)
Retained earnings 780 539
Total equity 15,943 15,717
Consolidated statement of cash flows
For the year ended 30 September 2017 2017 2016
GBP000 GBP000
Operating activities
Profit after tax 403 298
Adjustments for:
Income tax credit (196) (112)
Finance expense 92 558
Employee share based payment charge 15 10
Depreciation of property, plant and
equipment 528 379
Amortisation of intangible assets 237 237
Gain on existing interest on acquisition
of control - (327)
Loss/(profit) on sale of fixed assets 38 (96)
Share of post-tax profit of equity
accounted joint ventures (190) (115)
927 832
Increase in trade and other receivables (2,357) (840)
Increase in inventories (402) (67)
Increase in trade and other payables 930 748
(1,829) (159)
Cash (used in)/generated from operations (902) 673
Income taxes paid (92) (173)
Net cash flows from operating activities (994) 500
Investing activities
Purchase of property, plant and equipment (3,903) (3,417)
Proceeds from sale of property, plant
and equipment - 187
Purchase of intangible assets (363) (180)
Acquisition of subsidiary (net of
overdraft acquired) - (56)
Dividend received from equity-accounted
for joint venture 153 15
Net cash used in investing activities (4,113) (3,451)
Financing activities
Share capital issued - 14,000
Share issue expenses - (895)
Interest paid (81) (324)
Loan notes repaid (1,175) (425)
Bank loans repaid (219) (3,908)
Hire purchase repaid (400) (420)
Increase/(decrease) in invoice discounting 2,199 (1,893)
Bank loans drawn 105 2,976
Repayment of Directors' loans - (300)
Dividends paid (177) (9)
Net cash from financing activities 252 8,802
Net (decrease)/increase in cash and
cash equivalents (4,855) 5,851
Cash and cash equivalents at beginning
of year 6,300 505
Overdraft on acquisition - (56)
Cash and cash equivalents at end
of year 1,445 6,300
2017 2016
GBP000 GBP000
Cash and cash equivalents comprise:
Cash balances 1,625 6,449
Bank overdrafts (180) (149)
1,445 6,300
Non cash transactions
Ordinary shares with a value of GBP500,000 were issued to settle
the consideration for the balance of the acquisition of Autins AB
(formerly Scandins AB) and of the non-controlling interest in
Autins GmbH (formerly RI Rheinland Insulations GmbH) in the year
ended 30 September 2016.
The Group acquired plant and equipment at a cost of GBPnil
(2016: GBP240,000) under hire purchase arrangements and at 30
September 2016 there was a capital accrual of GBP1,410,000 which
was subsequently settled in the year ended 30 September 2017
Reconciliation of movements in net cash/financing
liabilities
Year ended 30 Opening Cash flows Non-cash Closing
September 2017 GBP000 GBP000 movements GBP000
GBP000
Cash balances 6,449 (4,824) - 1,625
Bank overdrafts (149) (31) - (180)
-------- ----------- ----------- --------
6,300 (4,855) - 1,445
Invoice discounting - (2,199) - (2,199)
Bank loans (519) 114 - (405)
Hire purchase
liabilities (1,281) 400 - (881)
Loan notes (1,164) 1,175 (11) -
3,336 (5,365) (11) (2,040)
-------- ----------- ----------- --------
Year ended 30
September 2016
Cash balances 505 5,944 - 6,449
Bank overdrafts - (93) (56) (149)
-------- ----------- ----------- --------
505 5,851 (56) 6,300
Invoice discounting (1,893) 1,893 - -
Bank loans (1,260) 741 - (519)
Hire purchase
liabilities (1,461) 420 (240) (1,281)
Loan notes (1,355) 425 (234) (1,164)
(5,464) 9,330 (530) 3,336
-------- ----------- ----------- --------
Consolidated statement of changes in equity
For the year ended 30 September 2017
Cumulative currency
Share
Share premium Other differences Retained Total
capital account reserves reserve earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 October 2016 442 12,938 1,886 (88) 539 15,717
Comprehensive income for the year
Profit for the year - - - - 403 403
Other comprehensive income - - - (15) - (15)
Total comprehensive income for the year - - - (15) 403 388
Contributions by and distributions to owners
Share based payment - - - - 15 15
Dividends - - - - (177) (177)
Total contributions by and distributions to owners - - - - (162) (162)
At 30 September 2017 442 12,938 1,886 (103) 780 15,943
The cumulative currency differences reserve may be reclassified
subsequently to profit and loss.
1. 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
Financial Reporting Standards as endorsed for use in the European
Union (IFRSs), this announcement does not contain sufficient
information to comply fully with IFRSs.
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 30 September 2017
or 2016, but is derived from those accounts. Statutory accounts for
the year ended 30 September 2016 have been delivered to the
Registrar of Companies and those for the year ended 30 September
2017 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 2017 and 30
September 2016 did not contain statements under s498 (2) or (3) of
the Companies Act 2006.
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.
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. Any
non-controlling interest in a subsidiary entity is recognised at a
proportionate share of the subsidiary's net assets or liabilities.
On acquisition of a non-controlling interest, the difference
between the consideration paid and the non-controlling interest at
that date is taken to equity reserves.
2. Revenue and segmental information
Revenue analysis
2017 2016
GBP000 GBP000
Revenue arises from:
Sales of components 24,844 19,745
Sales of tooling 1,513 633
26,357 20,378
======= =======
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 manufacturers. Turnover and operating profit are
disclosed for other segments in aggregate as they individually do
not have a significant impact on the Group result. These segments
have no significant 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 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
and building products are included within the others segment.
Neither element is considered significant.
Segmental analysis for the year ended 30 September 2017
Automotive Others 2017
NVH GBP000 Total
GBP000 GBP000
Group's revenue per consolidated
statement of comprehensive income 24,925 1,432 26,357
Depreciation 528 - 528
Amortisation 237 - 237
Segment operating profit 19 90 109
Finance expense (92)
Share of post-tax profit of equity
accounted joint ventures 190
Group profit before tax 207
========
Additions to non-current assets 3,001 - 3,001
Reportable segment assets 25,835 - 25,835
Investment in joint ventures 243 - 243
Reportable segment assets/total
Group assets 26,078 - 26,078
Reportable segment liabilities/total
Group liabilities 10,135 - 10,135
Segmental analysis for the year ended 30 September 2016
Automotive Others 2016
NVH GBP000 Total
GBP000 GBP000
Group's revenue per consolidated
statement of comprehensive income 19,514 864 20,378
Depreciation 379 379
Amortisation 237 237
Segment operating profit 218 84 302
Finance expense (558)
Share of post-tax profit of equity
accounted joint ventures 115
Gain on existing interest on acquisition
of control 327
Group profit before tax 186
========
Additions to non-current assets 6,511 - 6,511
Reportable segment assets 25,483 - 25,483
Investment in joint ventures 206 - 206
Reportable segment assets/total
Group assets 25,689 - 25,689
Reportable segment liabilities/total
Group liabilities 9,972 - 9,972
Revenues from one customer in 2017 total GBP16,960,000 (2016:
GBP13,158,000). This major customer purchases goods from Automotive
Insulations Limited in the United Kingdom. There are no other
customers which account for more than 10% of revenue.
External revenues by location of customers
2017 2016
GBP000 GBP000
United Kingdom 23,044 18,940
Sweden 1,002 461
Germany 2,260 916
Rest of the World 51 61
26,357 20,378
The only material non-current assets in any location outside of
the United Kingdom are GBP1,157,000 (2016: GBP1,099,000) of fixed
assets and GBP629,000 (2016: GBP574,000) of goodwill in respect of
the Swedish subsidiary.
3. Profit from operations
The operating profit is stated after charging:
2017 2016
GBP000 GBP000
Foreign exchange losses/(gains) 3 (89)
Depreciation 528 379
Amortisation of intangible assets 237 237
Loss/(profit) on disposal of
fixed assets 38 (96)
Cost of inventory sold 15,551 12,930
Research and development 256 684
Revenue grant income (121) (264)
Employee benefit expenses 7,063 4,814
Lease payments 1,426 1,031
Auditors' remuneration:
Fees for audit of the Group 43 41
Fees for taxation compliance
taxationccomplianceservices 3 9
Fees for taxation advisory services 5 23
Fees for other services 6 23
======= ========
Exceptional costs in respect
of:
IPO related expenses (net) 92 182
======= ========
Other exceptional costs;
Change of Chief Executive and
senior management restructuring 274 -
Critical press repair costs 184 -
458 -
======= ========
Solar Nonwovens operating loss
during the commissioning phase 590 261
======= ========
IPO related expenses
IPO costs spanned the prior year end as a result of the timing
of the IPO. Exceptional costs therefore include a further GBP92,000
of IPO related administrative expenses. Costs of GBP648,000 in the
prior year were offset by GBP466,000 recharged to Director
shareholders who sold shares (GBP182,000 net).
In addition in the prior year, auditors remuneration of
GBP199,000 in respect of corporate finance services and GBP11,000
in respect of other assurance services were included in August 2016
share issue costs which were allocated between the share premium
account and operating costs.
Other exceptional costs
During the year Jim Griffin resigned as CEO and was replaced by
Michael Jennings generating GBP158,000 of exceptional costs.
Following this change of Chief Executive a review of Group staffing
was conducted to ensure it was aligned to the Group's strategic
growth ambitions with a consequential further GBP116,000 of
exceptional expense in the year. Other exceptional costs of
GBP184,000 relate to critical press repairs that arose following
the identification of structural cracks in the head of three new
presses within the UK (2016: GBPnil).
Solar Nonwovens operating loss
The ongoing start up process and commissioning of the major
plant for the Neptune line resulted in an operating loss of
GBP590,000 (2016:GBP261,000) from the incremental costs of the
operation and the specific premises taken on for the plant.
Research and development costs
The Group strategically invested in research and development
work as disclosed above in order to deliver growth in future
periods. Revenue grants of GBP121,000 (2016: GBP264,000) are in
relation to government assistance on research projects.
4. Finance expense
2017 2016
GBP000 GBP000
Bank loan interest 27 266
Loan note interest 11 234
Interest element of hire purchase agreements 54 58
92 558
5. Earnings per share
2017 2016
GBP000 GBP000
Profit
Profit used in calculating basic and
diluted EPS 403 295
Number of shares
Weighted average number of GBP0.02 shares
for the purpose of basic earnings per
share ('000s) 22,101 14,513
Weighted average number of GBP0.02 shares
for the purpose of diluted earnings
per share ('000s) 22,101 14,524
Earnings per share (pence) 1.82p 2.03p
Diluted earnings per share (pence) 1.82p 2.03p
========= ========
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 309,076 (2016: 436,152)
shares that were anti-dilutive at the year end but which may dilute
future earnings per share.
6. 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.
7. Annual General Meeting
The Annual General Meeting of Autins Group plc will be held at
the offices of Freeths LLP, 3rd Floor, The Colmore Row Building,
Colmore Circus, Queeensway, Birmingham, B4 6AT on 2 February 2018
commencing at 12 noon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAAAFFSLXFAF
(END) Dow Jones Newswires
December 12, 2017 02:00 ET (07:00 GMT)
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