Automotive supplier warns of cost-cutting
Automotive supplier Autins Group is “taking steps” to reduce costs as it expects trading to continue to be challenging.
The automotive sector has been among the most vociferous about the impact of a hard or no-deal Brexit, while other factors – such as fall in consumer demand for diesel cars – has hit some suppliers.
Jaguar Land Rover is currently on a two-week shutdown at its Solihull plant, which has a knock-on effect throughout its supply chain.
Autins manufactures and supplies acoustic and thermal insulation solutions for the automotive sector. It floated two years ago but has seen its market value fall 80%.
It expects its revenues for the year to September 2018 to be “not less than £29m” and adjusted pre-tax losses to be “not more than £1.3m”. This follows a profit warning in June.
The company told the stock market: “Against this backdrop, the Board is taking steps to ensure the Company has the correct cost base for the prevailing trading environment whilst ensuring there is sufficient capacity to take advantage of the many opportunities to grow and diversify the business.”
Autins did share some good news. It has generated £1m of Neptune component sales wins since June, of which 70% have been to new customers across Europe.
