Regulatory Story
Go to market news section View chart   Print
RNS
Autins Group PLC  -  AUTG   

Final Results

Released 07:00 12-Dec-2017

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 £26.4 million (FY2016: £20.4 million)

·     Gross Profit increased to £9.0 million (FY2016: £6.5 million)

·     Adjusted EBITDA1 increased to £2.0m (FY2016: £1.4m)

·     Adjusted operating profit1 increased to £1.5m (FY2016: £0.9m)

·     Profit After Tax increased to £0.4 million (FY2016: £0.3 million)

·     Net debt2 £2.0 million (FY2016: Net cash £3.3 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 £0.5m (FY2016: Nil), additional IPO related costs of £0.1m (FY2016: £0.2m) and £0.6m (FY2016: £0.3m) of non recurring Neptune start up costs.  Adjusted operating profit additionally excludes £0.2m 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

Adam Attwood, Non-Executive Chairman

Michael Jennings, Chief Executive

James Larner, Chief Financial Officer

 

 

Via Newgate

Cantor Fitzgerald Europe

(Nominated Adviser and Broker)

Philip Davies

Will Goode

 

Tel: 020 7894 7000

Newgate Communications

(Financial PR)

Adam Lloyd

Ed Treadwell

James Browne

 

 

Tel: 020 7653 9850

 

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 £26.4 million (FY2016: £20.4 million), and gross profit, ahead 38% to £9.0 million (FY2016: £6.5 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 £26.4 million (FY2016: £20.4 million). 

Sales of components increased by 26% to £24.8 million (FY2016: £19.7 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 £0.9m (FY2016: £0.6m) with the Swedish DBX business acquired in April 2016 adding £0.1m 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 £22.0 million (FY2016: £18.4 million).  Non-automotive components revenue in the UK increased by £0.2m 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 £1.1m 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 £0.8m (FY2016: £0.3m) 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 £1.5 million (FY2016: £0.6 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 £2.0m (FY2016: £1.4m) with an adjusted operating profit of £1.5m (FY2016: £1.0m) 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 £0.9m (2016: £0.9m) after charging £0.55m (FY16: £0.2m) of exceptional costs, and £0.6m (FY2016: £0.3m) 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 £0.2m (FY2016: £nil) 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 £0.1m of exceptional costs in the year (FY2016: £nil). 

 

During the year, the Group incurred £0.2m (FY2016: £nil) 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 £0.1m were incurred in relation to the Group's IPO in the year (FY2016: £0.2m).

 

Amortisation of £0.2m (FY2016: £0.2m) 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 £0.6m (FY2016: £0.3m) 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 £0.4m 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 £2.6m (FY2016: £1.8m) with a profit before tax of £0.5m (FY2016: £0.4m) after £0.05m of exceptional costs (FY2016: £Nil).  The Group's share of profit after tax was £0.2m (FY2016: £0.1m).  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 £1.1m 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 £0.1m (FY2016: £0.6m).  

 

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 £0.2m (FY2016: £0.1m) in relation to these losses.  The Group has a further £0.1m (2016: £0.2m) 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 £2.0m (FY2016: net cash £3.3m) that included cash and cash equivalents of £1.4m (FY2016: £6.3m).  During the year cash was applied to settle loan notes of £1.1m, 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 £0.9m (FY2016: £1.3m) of hire purchase agreements in the UK and £0.4m (FY2016: £0.5m) 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 £0.1m of new asset backed loans in the year.

 

As reported last year, the Group had, in support of IPO costs, secured £0.25m 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 £2m year-on-year increase in component revenue in the final quarter, as well as £0.25m 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 £2.6m (FY2016: £5.0m) 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 £0.85m 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

Note



 

2017

£000

 

2016

£000

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







-

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

£000

 

2016

£000







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







-

(4)










388

203







 

 

 

 

Consolidated statement of financial position

As at 30 September 2017



2017

£000

2016

£000

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

£000

2016

£000

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

£000

 2016

£000

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 £500,000 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 £nil (2016: £240,000) under hire purchase arrangements and at 30 September 2016 there was a capital accrual of £1,410,000 which was subsequently settled in the year ended 30 September 2017

 

Reconciliation of movements in net cash/financing liabilities

 

Year ended 30 September 2017

Opening

£000

Cash flows

£000

Non-cash movements

£000

Closing

£000

 

 

 

 

 

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



 

Share


Cumulative currency




Share

premium

Other

differences

Retained

Total


capital

account

reserves

reserve

earnings

equity


£000

 £000

£000

£000

£000

£000






















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








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

£000

2016

£000

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

NVH

£000

Others

£000

2017

Total

£000

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

NVH

£000

Others

£000

2016

Total

£000

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 £16,960,000 (2016: £13,158,000).  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

£000

2016

£000

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 £1,157,000 (2016: £1,099,000) of fixed assets and £629,000 (2016: £574,000) of goodwill in respect of the Swedish subsidiary.

 

 

3.          Profit from operations

 

The operating profit is stated after charging:



2017

£000

2016

£000

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 £92,000 of IPO related administrative expenses. Costs of £648,000 in the prior year were offset by £466,000 recharged to Director shareholders who sold shares (£182,000 net).

 

In addition in the prior year, auditors remuneration of £199,000 in respect of corporate finance services and £11,000 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 £158,000 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 £116,000 of exceptional expense in the year. Other exceptional costs of £184,000 relate to critical press repairs that arose following the identification of structural cracks in the head of three new presses within the UK (2016: £nil).

 

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 £590,000 (2016:£261,000) 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 £121,000 (2016: £264,000) are in relation to government assistance on research projects.



 

4.          Finance expense

 


2017

£000

2016

£000

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

£000

2016

£000

Profit



Profit used in calculating basic and diluted EPS

403

295

Number of shares



Weighted average number of £0.02 shares for the purpose of basic earnings per share ('000s)

22,101

14,513

Weighted average number of £0.02 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
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Final Results - RNS