Semi-conductor shortage threatens to short circuit growth at manufacturer

A shortage of semiconductors is hampering growth at Rugby manufacturer Autins, which says the war in Ukraine is short circuiting momentum.

The firm is set to hold its AGM today and has admitted that what it thought was a short-term supply chain issue has now dragged out into the first half of its 2022 financial year.

Despite this, the insulation specialist says that medium-term prospects remain “positive” with good retail demand for cars being reported.

Chairman Adam Attwood will tell the Autins AGM: “FY21 was one of strategic progress despite automotive market uncertainty. We continued our operational improvements and successfully increased European and non-automotive sales, particularly German flooring and products made from our proprietary melt blown material, Neptune. However, the positive H1 momentum was checked in H2 by semiconductor related supply chain disruption which adversely affected automotive volumes. This led the group to undertake and successfully complete a £3m placing in December 2021 to improve cash headroom and ensure the company is well positioned to take advantage of future market recovery.

“Sales volumes in H1 FY22 remain similar to H2 FY21 due to the continued impact of semiconductor shortages. The industry had previously forecast an improvement in semiconductor supply in the second half of calendar year 2022, but the war in Ukraine adds to the overall uncertainty and timing of the recovery.

“The group is keeping the changes in energy and commodity prices under ongoing review and will take actions accordingly.”