Thermal insulation and acoustic material manufacturer Autins Group (LON: AUTG) is maintaining its recovery momentum and cost savings helped to reduce the 2022-23 loss. A new chief executive is joining in April, and he has extensive experience in the core automotive market. The share price recovered 6.25% to 8.5p, but this is only just above the all-time low.
The AIM-quoted company has been winning new contracts with automotive manufacturers such as Jaguar Land Rover and Nissan. There has been a positive customer reaction to new products including the 100%-recyclable Neptune-R material.
In the year to September 2023, revenues improved from £18.9m to £22.7m, while the pre-tax loss reduced from £3.55m to £1.04m. Gross margin improved from 22.5% to 29.5%. All the growth was in the automotive sector with other revenues declining – mainly due to the weak flooring market in Germany.
Productivity has improved and there has been a lower staff turnover. Waste has been reduced. Conversion to renewable energy sources has reduced carbon emissions by 88%, although utility costs did rise by £500,000 as forward contracts came to an end.
Net debt declined from £2m to £1.6m. The unused invoice discounting facility provides cash headroom of £4.1m. That is enough to cover the expected debt repayments until the end of 2024.
Andy Bloomer is replacing Gareth Kaminski-Cook on 22 April. He has been head of sales and marketing of a division of Morgan Advanced Materials for the past four years. This has annual revenues of £150m. He has experience with electric vehicles and speaks German – Germany is a key market. There are no forecasts for the current financial year, but Singer believes that full year revenues of £26m are possible. That might have been enough to achieve a small operating profit, but management says that more will be spent on sales and marketing and R&D in the second half. That will hold back improvement in profitability. It is also before the new chief executive comes in and assesses the situation.