TIDMAUTG
RNS Number : 5566D
Autins Group PLC
30 June 2021
30 June 2021
Autins Group plc
(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 2021.
Financial Summary
-- Revenue increased by 3.7% to GBP13.71m (H1 20: GBP13.22m)
-- Gross profit increased by 1.8% to GBP3.91m (H1 20: GBP3.84m)
-- Gross margins decreased by 0.5% to 28.5% (H1 20: 29.0%)
-- EBITDA including IFRS 16 adjustments increased by 66.2% to GBP1.18m (H1 20: GBP0.71m)
-- Adjusted EBITDA(1) of GBP0.66m (H1 20: EBITDA of GBP0.27m)
-- Profit after tax of GBP0.01m (H1 20: loss of GBP0.64m)
-- Earnings per share of 0.025p (H1 20: loss of 1.62p)
-- Operating cashflow increased to GBP0.87m (H1 20: GBP0.62m)
-- Net debt(2) excluding IFRS16 lease liabilities improved to GBP1.84m (H1 20: GBP2.34m)
1: EBITDA adjusted for IFRS 16, is stated on a consistent basis
to H1 20. The H1 20 measure is therefore stated before adding back
GBP0.16m of non-recurring costs in respect of the change in
CFO.
2. Net debt is cash less bank overdrafts, loans, invoice
discounting, hire purchase finance and right of use lease
liabilities .
Operational Highlights
-- Neptune sales continue to progress well with sales growing by 33%.
-- 29 new projects won during H1 21, with on-going expected annual value of GBP3.9m.
-- 46% of new business (GBP1.8m) has been won in Europe, 20% of
all wins are in non-automotive applications.
-- Germany sales grew by 81% to GBP3.9m (H1 20: GBP2.1m) with
significant growth in the flooring business.
-- OEM car production in H1 21 impacted initially by Covid-19 and latterly by global shortage of semi-conductors.
-- Strong cash and working capital management actions have been
taken. Cash and cash equivalents improved to GBP2.9m at the period
end (H1 20 GBP1.9m) and cash headroom significantly improved to
GBP6.1m (H1 20 GBP1.5m).
Post Period End
-- Semi-conductor shortages continue to significantly suppress
auto OEM production levels during Q3, despite the underlying growth
in demand for new cars so that we expect H2 automotive revenue to
be lower than H1.
-- Neptune production continues to grow steadily with further
new projects with DAF, Scania and office pods due to commence
towards the end of the calendar year.
-- The Company has engaged in constructive discussions with its
lenders regarding covenant and headroom assessments. This has
resulted in the Company securing a 3-year CBILS invoice finance
extension facility with its primary bankers HSBC (which supports up
to GBP0.47m of additional cash drawdown) and a waiver of the EBITDA
covenant for 30(th) September 2021.
Gareth Kaminski-Cook, Chief Executive, said:
" I am pleased to report that sales across the Group are up 3.7%
compared to H1 20 and EBITDA including IFRS 16 adjustments
increased by 66% to GBP1.18m. Growth has been driven by market
share growth in Europe and in non-automotive sectors of flooring
and commercial vehicles.
During Q2 and Q3, our sales have been significantly impacted by
the well-publicised semi-conductor supply issues. However, the
strong underlying demand for cars and reassuring statements from
semi-conductor manufacturers that they will begin to meet
automotive demand during the summer suggests that we should start
to see a recovery later this calendar year.
"In the meantime, we continue to successfully execute our
strategy to diversify outside the UK and into new sectors. Sales in
the flooring business more than doubled during H1 and by leveraging
the unique qualities of our Neptune technology we have won 29 new
projects in the first half, notably to supply new customers such as
Volvo for the all-electric Polestar and Scania and DAF trucks in
Sweden and Germany respectively.
"Despite the challenges posed to our auto customers by the
global semi-conductor shortage and the likely impact on automotive
revenues in H2, we remain positive on the outlook for the medium to
long term ."
For further information please contact:
Autins Group plc
Gareth Kaminski-Cook, Chief Executive Via Newgate
Kamran Munir, CFO
N+1 Singer Advisory LLP Tel: 020 7496 3000
(Nominated Adviser and Broker)
Mark Taylor / Asha Chotai
Newgate Communications Tel: 020 7653 9850
(Financial PR)
Adam Lloyd
Tom Carnegie
About Autins
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
H1 21 showed a solid improvement compared to H1 20, with sales
increasing through our German business and lower operating costs
resulting in EBITDA increasing by GBP0.47m to GBP1.18m (H1 20:
GBP0.71m).
The Neptune facility has continued to see increasing production
and external sales volumes. With further growth anticipated because
of recent contract wins, production capacity will need to be
increased by c.30% in the short term and several capital projects
are already underway with plans to add additional capacity, as
required, over the next year.
A key objective of the Group's on-going operational improvement
programme is to increase the flexibility of the business so that
its cost base can be adjusted quickly when faced with volatile
demand and customer shutdowns. During the period, additional
incremental productivity increases, and value engineering
initiatives were implemented. Overhead costs were also reduced with
the relocation of our R&D facility to the head office in Rugby,
which facilitated the release of the rented MIRA facility in
Nuneaton.
Although gross profit increased in absolute value against H1 20,
H1 21 gross margin reduced by 0.5% against H1 20. There was
underlying improvement in materials, labour, and production costs.
However, reduced UK manufacturing volumes reduced the absorption of
fixed production costs which negatively affected gross margin
percentage. Furlough working patterns remain an ongoing feature
within the UK.
Germany has secured volume increases in both the flooring and
automotive market, but Sweden experienced some volume losses with
associated low levels of redundancies being implemented to mitigate
the impact.
Revenue
Sales across the Group increased by 3.7% to GBP13.71m (H1 20:
GBP13.22m) driven by market share growth in the automotive sector
in Europe and growth in non-automotive sectors of flooring and
commercial vehicles.
Sales through the European operations now account for 33% of
Group turnover, up from 23% last year.
Automotive sales declined by 8.3% to GBP11.5m, driven by reduced
OEM production caused primarily by semi-conductor shortages and
some cost reduction actions by the Group's major customer. Revenue
in the UK decreased by 11% to GBP9.5m, with component revenue
reducing by 3.5% and tooling reducing by 81% as the OEMs focused
less on releasing new projects and more on cost cutting.
German automotive sales grew by 3.7% to GBP1.5m, whilst Sweden
auto sales reduced by 16.2% to GBP0.9m.
It is pleasing to note that during H1 we began to supply
directly to Volvo for the all-electric Polestar and the Swedish
team has reached the late stage of negotiations to supply
significant near-term volumes.
By leveraging the unique qualities of our Neptune technology, we
have won 29 new projects in the first half year, notably to supply
new customers such as Volvo for the all-electric Polestar and
Scania and DAF trucks in Sweden and Germany respectively.
Non-auto sales grew by 283% to GBP2.4m, driven primarily by
sales into flooring which grew year on year by 311.8% to GBP2.3m.
In the UK we have won business with new customers in the workspace
market of office pods. This is a nascent market set to grow over
the coming years and for which the Neptune product is uniquely
suitable for thin walls and roof spaces. Non-auto sales now count
for 17% of Group turnover, up from 7% a year ago.
Sales concentration of our largest customer reduced from 50.5%
last year to 46.2% in H1 21, driven primarily by the growing
European flooring activities and depressed UK auto market. This
should reduce further as new contracts to supply commercial
vehicles and office pods start later this year, though we expect
this will be partially offset by recovery of the UK auto
market.
Gross margin
The Group's component gross margin decreased to 28.5% (H1 20:
29.0%). Focus was maintained on further improving material buying
and usage, supply chain costs, manufacturing efficiency and labour
productivity to mitigate the impact of current market conditions.
Increased utilisation of the Neptune line as noted above is also
having a positive impact, with increased dilution of fixed labour
and operational costs associated with that manufacturing facility.
Lower fixed overhead absorption from reduced UK and Sweden sales
volumes and lower pricing on some Germany products offset the
improvements made.
EBITDA and operating profit
The reported H1 21 EBITDA of GBP1.18m (H1 20: EBITDA profit of
GBP0.71m) and reported operating profit of GBP0.15m (H1 20: loss of
GBP0.78m) do not reflect any exceptional costs (H1 20: GBP0.16m).
Excluding IFRS16 impacts, EBITDA for H1 21 is GBP0.66m (H1 20:
EBITDA of GBP0.27m).
The reported operating profit is also stated after recognising
GBP0.12m (H1 20: GBP0.12m) relating to amortisation arising on
intangibles which were created at the Group's IPO.
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 increased 0.7% to GBP1.47m (H1 20:
GBP1.46m), with a profit after tax of GBP0.21m (H1 20: GBP0.14m).
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
not changed significantly from H1 20.
Net finance expense
Net finance expense for the period marginally increased to
GBP0.27m (H1 20: GBP0.26m) including IFRS 16 charges of GBP0.14m
(H1 20 GBP0.15m). The interest element of hire purchase agreements
is GBP0.01m (H1 20: GBP0.02m) with interest charged on bank
borrowings of GBP0.13m (H1 20: GBP0.09m). This latter increase
relates to the MEIF loan funding secured in January 2020 at 7.5%
p.a.
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 at September 2020.
The net credit in the period arises as a result of a refund from an
enhanced R&D claim made in respect of prior year
expenditure.
We would expect the effective rate for full year profits to be
lower than the headline rates due to both the utilisation of
brought forward losses in the UK and Sweden as well as a degree of
enhanced R&D claims. Germany is likely to move into a tax
paying position as it has now largely utilised its losses brought
forward against profits in FY20 and FY21 to date.
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 GBP1.84m (H1 20
GBP2.34m). Including GBP5.34m (H1 20 GBP5.68m) arising from IFRS 16
lease liabilities the Group's net debt would be GBP7.18m (H1 20
GBP8.02m). Net debt has continued to show a reduction with improved
cash generation. Cash and cash equivalents at the period end were
GBP2.9m (H1 20: GBP1.9m; FY20: GBP2.9m).
At 31 March 2021, the Group's UK HSBC facilities provided up to
GBP6.0m (H1 20: GBP6.0m) of invoice financing facility (subject to
available accounts receivable balances) and GBP0.5m (H1 20:
GBP0.5m) of asset finance facilities. At the end of the period,
none of the invoice financing facility had been utilised (H1 20:
GBP2.33m) with GBP0.4m used from the asset finance facility (H1 20:
GBP0.4m, FY20: GBP0.4m). Group c ash headroom significantly
improved to GBP6.1m (H1 20 GBP1.5m).
Capital expenditure
The Group invested GBP0.1m (H1 20: GBP0.1m) in its facilities
during the period. The Group has planned further investments for UK
press equipment improvement and Neptune throughput improvement.
Government support and cost conservation measures
The Group has continued to utilise the Government support
schemes during the pandemic. Volatile customer demand patterns have
meant that periodically staff have been placed on furlough or an
equivalent overseas scheme. In Germany, this has been available to
cover up to 100% of employee costs, in Sweden this is up to 80%,
subject to capped limits. In the UK the Coronavirus Job Retention
Scheme has been used, typically to cover dedicated customer matched
shutdowns or short time working within a weekly production cycle.
In addition, the Board has periodically taken voluntary pay
reductions averaging up to 15% for most of the period, largely
matching furlough timings across the business.
Furlough and pay reduction recoveries across the UK facilities
for the H1 period were GBP0.3m. The Group will continue to utilise
Government support measures whilst available and until customer
demand recovers to pre pandemic levels and expect this to be in the
worth in the order of GBP0.4m for H2 21.
Cash conservation actions regarding payment extensions agreed
and described in our prior financial year have been substantively
repaid in accordance with the agreed terms, with only some residual
items outstanding related to buildings' landlords and finance lease
payment holidays.
Board changes and employees
Ian Griffiths resigned from the Board, as a Non-Executive
Director of the Company, at the Company's AGM on 12 March 2021.
Autins has continued with its Covid-19 safe working practices
policy, with appropriate home working, social distancing measures
and sanitising hygiene management and monitoring measures.
Employees have remained loyal, dedicated, and flexible in support
of the Company. We utilise a dedicated smart phone application to
send instant messages and news to our workforce. We also conducted
a 100% employee feedback survey in the UK facilities, which had
excellent take up rate, giving strong results and improved
assessments since the prior survey two years ago.
Going Concern
In approving these Interim Financial Statements, the Board have
reviewed current trading, profit and cash flow forecasts and
assessed existing borrowings and available sources of finance.
The Covid-19 crisis has caused significant sales disruption to
the Company since March 2020, with H2 20 being the most affected,
after which some recovery has occurred. Notwithstanding this, since
March 2020, we are pleased to report, that as a result of a strong
focus on Group wide cash management, prudent cost containment
measures, utilisation of furlough schemes, and restructuring of its
borrowings during 2020, the Group has seen its cash balances
improve by GBP1.0m, net debt reduce by GBP0.5m and cash headroom
significantly improve by GBP4.6m to GBP6.1m at the end of March
2021.
The subsequent shortage of semi-conductor chips into the
automotive supply chain has caused a second wave of disruption for
our key customers and consequently automotive sales reduction
within the Group. This had a partial impact in Q2 21 but has become
particularly acute in Q3 21. As a result, the modelled H2 21
forecast shows downside risks that would cause September 2021
period end EBITDA covenants in the UK to be breached. Regular
review discussions take place with the primary lenders and the
Group has proactively engaged with them. Both lenders have adopted
a supportive position after reviewing forecasts and actual
financial performance data, and the Company has now received
advance covenant waivers for the September 2021 testing date.
Forward looking profit and cash flow projections for FY22 and
FY23 have been prepared. As well as a reasonable base case, these
show that the Group, with the benefit of the prevailing cash
headroom, could withstand further plausible downside trading
scenarios and the impact of an extended automotive supply
disruption. Adverse sensitivities have been assessed in the 15% to
25% range against prevailing key customer demand schedules and
forecasts. In both of these modelled downside scenarios, liquidity
remains adequate to ensure that payment commitments can be met to
current terms as they fall due, for at least 15 months from the
reporting date of these interim statements. Headroom remains in
excess of GBP1.0m throughout the assessment period even in the
higher 25% sensitivity scenario. This includes the repayment of the
GBP0.75m bullet CBILS loan due in August 2021, and also includes
commencement of instalment repayments of the GBP2.0m CBILS and
GBP1.5m MEIF term loans from July 2021 and October 2021
respectively.
Continuing uncertainty regarding the magnitude and timing of
sales recovery following the semi-conductor disruption to our key
customers mean that in the downside scenarios some of the lender
covenants in the UK (only) could potentially be breached from 31
December 2021. In all scenarios the Group wide EBITDA position
remains positive and, as noted, cash headroom is strong. Our
lenders are aware of these downside scenarios. In the event that
any of the downside scenarios materialise, we would explore a
variety of options, such as waiving specific covenants (as
required), resetting levels of UK covenants, or enabling covenants
to reflect Group performance as a whole. Separately, we are also
seeking to apply for a government supported Recovery Loan, for
which we meet the eligibility criteria. This would further improve
headroom and the covenant position. New additional commercial sales
wins are also possible, and these would improve cash and covenant
headroom immediately through our current, fully unutilised, HSBC
invoice finance facility.
Having due regard to all of the matters described above, the
Directors have a reasonable expectation that the Group have
adequate resources to remain in operation until at least 12 months
after the release of these financial statements. The Board have
therefore concluded to adopt the going concern basis in preparing
these financial statements.
Outlook
Despite an improving picture regarding automotive demand
reported by OEMs and retailers, short term uncertainty remains
regarding semiconductor supply which is negatively affecting car
production. The Board believes it is reasonable to assume that some
disruption will continue for the remainder of the Group's current
financial year. Despite current automotive conditions, we expect
our German business to continue to perform strongly in H2 21
underpinned by its non-automotive revenue.
We will maintain our focus on continuously improving our
operational efficiencies and reducing overheads to improve
profitability in the business. This has helped protect margins in
the UK and Sweden against the downward pressures caused by low and
volatile supply schedules and a more competitive market, whilst
improving the profit in the German operation.
We will also continue to diversify the business by winning
additional customers, particularly in the non-automotive markets,
so that we become less dependent on any one customer and
segment.
Whilst we expect revenue for H2 21 to be less than H1, the Board
remains positive regarding the prospects for the Group in our next
financial year, although the scale of any improvement will be
dependent on the timing and strength of the recovery of the UK
automotive market from the current specific semiconductor supply
issues.
Interim Consolidated Income Statement
Unaudited Unaudited Audited
Period Period Year Ended
1/10/20-31/3/21 1/10/19-31/3/20 30/09/20
Notes GBP'000 GBP'000 GBP'000
Revenue 2 13,712 13,215 21,517
Cost of sales (9,803) (9,379) (15,636)
Gross profit 3,909 3,836 5,881
Other operating income 287 - 787
Distribution and administrative
expenses excluding exceptional
costs and amortisation (3,927) (3,936) (7,430)
Amortisation of acquired
intangible assets 4 (119) (119) (238)
Other exceptional operating
costs 4 - (160) (292)
Total distribution and administrative
expenses (4,046) (4,215) (7,960)
Operating profit/(loss) 150 (379) (1,292)
Finance expense (274) (259) (523)
Share of post-tax profit
of equity accounted
joint ventures 104 71 55
Loss before tax (20) (567) (1,760)
Tax credit/(expense) 30 (73) 37
Profit/(loss) after tax
for the period 10 (640) (1,723)
Earnings per share for profit/(loss)
attributable to the owners
of the Parent during the
year
Basic (pence) 3 0.025p (1.62)p (4.35)p
================ ================ =============
Diluted (pence) 3 0.025p (1.62)p (4.35)p
================ ================ =============
Interim Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
Period Period Year Ended
1/10/20-31/3/21 1/10/19-31/3/20 30/09/20
GBP'000 GBP'000 GBP'000
Profit/(loss) after tax for the
period 10 (640) (1,723)
Other comprehensive income/(expense):
Items that may be reclassified
subsequently to
profit and loss:
Currency translation differences (26) (11) 18
Other comprehensive (expense)/income
for the period (26) (11) 18
Total comprehensive expense
for the period (16) (651) (1,705)
Interim Consolidated Statement of Financial Position
Unaudited Unaudited Audited
As at 31/3/21 As at 31/3/20 As at 30/9/20
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 9,646 10,353 10,082
Right-of-use assets 4,582 5,056 5,001
Intangible assets 3,153 3,380 3,322
Investments in equity-accounted
joint ventures 171 193 147
Deferred tax asset 95 51 149
Total non-current assets 17,647 19,033 18,701
Current assets
Inventories 1,885 1,982 1,938
Trade and other receivables 5,734 5,548 4,339
Cash in hand and at bank 2,957 2,003 2,974
Total current assets 10,576 9,533 9,251
Total assets 28,223 28,566 27,952
Current liabilities
Trade and other payables 4,087 3,436 3,151
Loans and borrowings 1,129 2651 1,027
Lease liabilities 748 696 917
Total current liabilities 5,964 6,783 5,095
Non-current liabilities
Trade and other payables 114 113 117
Loans and borrowings 3,673 1696 3,847
Lease liabilities 4,588 4980 4,970
Deferred tax liability 51 86 74
Total non-current liabilities 8,426 6,875 9,008
Total liabilities 14,390 13,658 14,103
Net assets 13,833 14,908 13,849
Equity attributable to equity
holders of the
Company
Share capital 792 792 792
Share premium account 15,866 15,866 15,866
Other reserves 1,886 1,886 1,886
Currency differences reserve (153) (156) (127)
Retained earnings (4,558) (3,480) (4,568)
Total equity 13,833 14,908 13,849
Interim Consolidated Statement of Changes in Equity
Unaudited
Currency
Share premium differences Retained Total
Share capital account Other reserves reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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
Currency
Share premium differences Profit and Total
Share capital account Other reserves reserve loss account equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 October 2019 792 15,883 1,886 (145) (2,313) 16,103
Effect of adoption of IFRS
16 - - - - (512) (512)
Comprehensive expense for
the period
Loss for the period - - - - (640) (640)
Other comprehensive expense - - - (11) - (11)
Total comprehensive expense
for the period - - - (11) (640) (651)
Contributions by and
distributions
to
owners
Share issue expenses (re August
2019 placing) - (17) - - - (17)
Share based payment - - - - (15) (15)
Total contributions by and
distributions to
owners - (17) - - (15) (32)
At 31 March 2020 792 15,866 1,886 (156) (3,480) 14,908
Share premium Currency Retained Total
Share capital account Other reserves differences earnings equity
GBP'000 GBP'000 GBP'000 reserve GBP'000 GBP'000 GBP'000
At 1 October 2019 792 15,883 1,886 (145) (2,313) 16,103
Effect of adoption of IFRS
16 - - - - (517) (517)
Comprehensive expense for
the year
Loss for the year - - - - (1,723) (1,723)
Other comprehensive expense - - - 18 - 18
Total comprehensive expense
for the year - - - 18 (1,723) (1,705)
Contributions by and
distributions
to
owners
Share issue expenses (re August
2019 placing) - (17) - - - (17)
Share based payment - - - - (15) (15)
Total contributions by and
distributions to owners - (17) - - (15) (32)
At 30 September 2020 792 15,866 1,886 (127) (4,568) 13,849
Interim Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
Period Period Year ended
1/10/20-31/3/21 1/10/19-31/3/20 30/09/20
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit/(loss) after tax 10 (640) (1,723)
Adjustments for:
Income tax (30) 73 (37)
Finance expense 274 259 523
Employee share-based payment
credit - (15) (15)
Non cash element of other income - - (109)
Depreciation of property, plant
and equipment 474 432 836
Loss on disposal of fixed assets 15 - -
Depreciation of right-of-use
assets 410 364 851
Amortisation of intangible assets 179 158 317
Share of post-tax profit of
equity accounted
joint ventures (104) (71) (55)
1,228 560 588
(Increase)/decrease in trade
and other receivables (1,401) 1,091 2,296
Decrease/(increase) in inventories 27 (21) 23
Increase/(decrease) in trade
and other payables 1,018 (1,012) (1,426)
Cash from operations 872 618 1,481
Income taxes received/(paid) 62 - (5)
Net cash flows from operating
activities 934 618 1,476
Investing activities
Purchase of property, plant
and equipment (89) (85) (154)
Purchase of intangible assets (28) (60) (125)
Dividend received from equity
accounted
joint venture 80 95 125
Net cash used in investing activities (37) (50) (154)
Financing activities
Interest paid (155) (258) (421)
Share issue expenses paid - (17) (17)
Proceeds from loans and borrowings - 1,500 4,523
Loan issue expenses paid - (41) (66)
Repayment of loans and borrowings (57) (1,697) (4,097)
Payment of lease liabilities (551) (323) (549)
Net cash used in financing activities (763) (836) (627)
Net increase/(decrease) in cash
and cash equivalents 134 (268) 695
Cash and cash equivalents at
beginning
of period 2,820 2,125 2,125
Exchange losses on cash and
cash equivalents (42) - -
Cash and cash equivalents at
end of period 2,912 1,857 2,820
Cash and cash equivalents comprise:
Cash balances 2,957 2,003 2,974
Bank overdrafts (45) (146) (154)
2,912 1,857 2,820
Notes to the Interim Consolidated Financial Information
1. Accounting policies
Description of business
Autins Group 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 th e 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 FY21 Annual Report and Accounts
which deal with the year ending 30 September 2021 and there are not
expected to be any changes in the Group's accounting policies
compared to those applied at 30 September 2020.
A full description of those accounting policies are contained
within our FY20 Annual Report and Accounts which are available on
our website ( Autins FY20 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 2020.
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 2021.
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 2021 and 31 March 2020 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 2020 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
1/10/20-31/3/21 1/10/19-31/3/20 30/09/20
GBP'000 GBP'000 GBP'000
Revenue arises from:
Component sales 13,507 12,144 20,192
Sales of tooling 205 1,071 1,325
13,712 13,215 21,517
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 FY21 with a
continuing subdued automotive market, almost all the other revenue
arises from acoustic flooring sales and in prior periods arose from
acoustic flooring, personal protective equipment ('PPE') and office
equipment products.
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 FY19 annual report and
accounts.
The Group evaluates performance on the basis of operating
profit/(loss).
1/1020-31/3/21
Automotive Others Total
NVH GBP'000 GBP'000
GBP'000
Group's revenue per Consolidated
Statement of Comprehensive
Income 11,355 2,357 13,712
Depreciation of property,
plant and equipment 474
Depreciation of right-of-use
assets 410
Amortisation 155 24
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 Others Total
NVH GBP'000 GBP'000
GBP'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
1/10/19-31/3/20
Automotive Others Total
NVH GBP'000 GBP'000
GBP'000
Group's revenue per Consolidated
Statement of Comprehensive
Income 12,382 833 13,215
Depreciation of property,
plant and equipment 432 - 432
Depreciation of right-of-use
assets 364 - 364
Amortisation 158 - 158
Segment operating (loss)/profit (341) 42 (299)
Finance expense (259)
Share of post tax profit
of equity accounted
joint venture 71
Group loss before tax (487)
As at 31/3/20
Automotive Others Total
NVH GBP'000 GBP'000
GBP'000
Additions to non-current
assets 145 - 145
Reportable segment assets 28,453 - 28,453
Investment in joint ventures 193 - 193
Total Group assets 28,646 - 28,646
Reportable segment liabilities/
total Group liabilities 13,658 - 13,658
Segmental information
Automotive Year Ended
NVH Others 30/9/20 Total
GBP'000 GBP'000 GBP'000
Group's revenue per Consolidated
Statement of Comprehensive
Income 18,446 3,071 21,517
Depreciation of property, 836 -
plant and equipment
Depreciation of right-of-use
assets 851
Amortisation 301 16
Segment operating(loss)/profit (1,504) 212 (1,292)
Finance expense (524)
Share of post tax profit
of equity accounted 55
joint venture
Group loss before tax (1,761)
Automotive As at 30/9/20
NVH Others Total
GBP'000 GBP'000 GBP'000
Additions to non-current
assets 279 - 279
Reportable Segment assets 27,805 - 27,805
Investment in joint venture
147
----------- ---------- ----------------
Total Group assets - 27,952
Reportable segment liabilities/
Total Group liabilities 14,103 - 14,103
Reporting of external revenue by location of customers is as
follows:
Unaudited Unaudited Audited
Period Period Year ended
1/10/20-31/3/21 1/10/19-31/3/20 30/09/20
GBP'000 GBP'000 GBP'000
United Kingdom 8,665 10,568 16,063
Germany 3,406 1,613 3,197
Sweden 309 276 322
Other European 1,332 750 1,913
Rest of the World - 8 22
13,712 13,215 21,517
3 Earnings per share
Unaudited Unaudited Audited
Period Period Year Ended
1/10/20-31/3/21 1/10/19-31/3/20 30/09/20
GBP'000 GBP'000 GBP'000
Profit/(loss) used in calculating
basic and
diluted earnings per share 10 (640) (1,723)
Weighted average number
of GBP0.02 shares
for the purpose of:
* basic earnings per share ('000) 39,601 39,601 39,601
* diluted earnings per share ('000) 39,996 39,601 39,601
Basic and diluted earnings
per share (pence) 0.25p (1.62)p (4.35)p
Profit/(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 options in place over 1,270,268 ordinary shares dependent
on Group EBITDA targets in the three financial years ending 30
September 2023 ("EBITDA Awards"). Further options over 1,587,839
ordinary shares are dependent on the Group's share price at 30
September 2023 ("Share Price Awards"). In addition, there are 9,593
options relating to prior schemes. These options were anti-dilutive
at the period end but may dilute future earnings per share (H1 20:
552,262 options over shares).
4 Non-recurring and exceptional items
Unaudited Unaudited Audited
Period Period Year Ended
1/10/20 - 31/3/21 1/10/19 - 31/3/20 30/09/20
GBP'000 GBP'000 GBP'000
Adjusted operating profit/(loss) 269 (100) (598)
Amortisation of acquired
intangible assets 119 119 238
Other exceptional operating
costs:
Inventory provisions - - 164
Change of Chief Financial
Officer - 160 160
Restructuring programme - - 132
Reported operating profit/(loss) 150 (379) (1,292)
The Company acquired 100 per cent of the issued share capital of
Acoustic Insulations Limited on 29 April 2014 as part of an overall
refinancing package to fund strategic investments and additional
working capital to support the growth of the Group. This
acquisition recognised GBP1,909k of intangible assets which creates
an annual amortisation charge of GBP237k.
In FY20, following a detailed operational review initiated by
the change of Chief Financial Officer and in preparation for the
rationalisation of the UK premises, the Group reviewed its
inventory and identified GBP164,000, primarily in respect of
materials that were being held for development or aftermarket
service purposes, which are to be scrapped to allow floor space
rationalisation and an associated reduction in future premises
costs.
The Group also incurred exceptional administrative costs of
GBP160,000 in the prior year in respect of the change of CFO,
including recruitment fees and compensation costs. As part of the
operational review initiated by the new CFO and in response to
COVID-19, which necessitated further operational changes and cost
reductions, the Group incurred a further GBP132,000 of severance
related costs.
5 Taxation
The tax credit for the period reflects receipt of a tax refund
of GBP71k arising from the allowances in respect of prior year
research and development costs (H1 FY20:GBPNil 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 2020. The net credit in the
period arises as a result of a refund from an enhanced R&D
claim made in respect of prior year expenditure. We would expect
the effective rate for full year profits to be lower than the
headline rates due to both the utilisation of brought forward
losses in the UK and Sweden as well as a degree of enhanced R&D
claims. Germany is likely to move into a tax paying position as it
has now largely utilised its losses brought forward against profits
in FY20 and FY21 to date.
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END
IR UKAKRARUNUAR
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June 30, 2021 02:00 ET (06:00 GMT)
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