Automotive supplier to raise funds in share placing

Autins is planning to raise at least £3.5m from investors to fund expansion into new countries and push its key product, Neptune.

The manufacturer supplies acoustic and thermal insulation products to the automotive sector and Neptune is an ultra-fine material that has become critical to the company’s success, accounting for two-thirds of its current £50m pipeline.

It has launched the share placing so it can invest £1.4m in geographic expansion and winning new customers, £600,000 in inventory for its Neptune product, £500,000 in automating some of its processes and a further £550,000 in creating a working capital buffer.

The company has confirmed that trading has stayed in line with expectations, despite the ongoing challenges facing car manufacturers.

In June it had highlighted a sales slowdown caused by destocking it linked to Brexit, while industry problems caused by reduced demand from China and uncertainty about diesel engine vehicles also had an impact.

The 20p-per-share is at a 29% discount to last night’s close, although is the level the shares were trading at between November and March.

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