Shareholders of Autins Group PLC (LON: AUTG) have seen their shares jump as the firm gave a positive update on Wednesday.
Autins is an industry-leading designer, manufacturer and supplier of acoustic and thermal insulation solutions for the automotive industry and other sectors.
They address complex and challenging problems through responsive and innovative applications engineering and advanced manufacturing that results in optimised specialist solutions for acoustic and thermal management worldwide
Autins have worked and host an impressive range of clients, such as Aston Martin, Bentley, Jaguar Land Rover and Porsche.
Shares of Autins jumped 2.25% to 20p on Wednesday morning. 11/12/19 10:47BST.
At the end of October, Autins gave shareholders an update that would have pleased shareholders. Autins said that they produced results in line with 2019 financial expectations.
The AIM listed firm said that “extensive” management actions employed to reduce costs and increase operational efficiency had successfully delivered improved profit margins.
Autins said they were “well-placed” with sufficient capacity to take advantage of the “many opportunities” in its pipeline, to grow and diversify the business.
Today, both senior management and shareholders will be delighted as the firm said that it narrowed its loss in the recent financial year.
The firm said its loss narrowed in the year to the end of September to £1.5 million from £1.7 million a year earlier, despite revenue slipping by 8.1% to £26.9 million from £29.2 million.
Autins explained revenue was hurt by the “challenging” trading conditions in the automotive industry. In particular, the company said it has experienced additional original equipment manufacturer factory shutdowns and demand being hurt by uncertainty over the future of diesel vehicles.
“Despite the considerable challenges faced by the automotive industry, decisive management action ensured that 2019 was a year of recovery, repositioning and new business wins,” said Chief Executive Gareth Kaminski-Cook.
He added: “We were successful in securing 22 new customers, achieving 14% growth in Europe and delivering a significant increase in sales of the Neptune technology. This positive momentum is encouraging and provides grounds for optimism for the future.”
Autins have pledged to focus on operational movement, sales growth and new market development, which will leave shareholders keen to see whether the full potential of this firm can be reached.
In a time where the global automotive industry is seemingly in decline evidenced by firms such as Suzuki who reported a quarterly slip which had been caused by stumbling Indian business, it seems that Autins can remain confident for 2020 trading.
