Brexit destocking adds to automotive supplier’s challenges

Gareth Kaminski-Cook

Automotive supplier Autins has warned that “destocking” within the sector since the original Brexit deadline of March 29 has “severely impacted” its sales in the last two months.

The company, which makes acoustic and thermal insulation products, has already endured a mixed year that has been driven by problems affecting the entire industry.

Jaguar Land Rover, Ford and Honda have all made substantial restructuring of parts of their UK operations in the last year, creating significant waves throughout the automotive supply chain.

Autins chief executive Gareth Kaminski-Cook, who joined the business last October, said: “The group, and the automotive industry generally, is continuing to experience challenging trading conditions due to a combination of factors, including OEM factory shutdowns due to Brexit, uncertainty over the future of diesel engine vehicles and a sharp decline in global demand, especially in China.”

These factors dragged down the financial performance of the Rugby-headquartered business during 2018, causing the business to cut costs.

It has seen some improvements in the six months to March despite a post-tax loss of £1m in the period. Margins have improved on the previous half-year period and Kaminski-Cook believes the business has “positive momentum”.

He highlighted 44% sales growth in Germany and the continued strong growth of sales of its Neptune products as positive signs for the business. Overall, revenues were down 14% to £13.7m.

He added: “Operational efficiencies and cost mitigation measures remain a key priority for the financial year and beyond, and the Board expects to see continued improvement in margin progression, supported by a broader customer base and further diversification of group revenues.”

Autins shares closed at 28p last night – a long way below its 2016 IPO price of 168p but 50% higher than its February low point.

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