Automotive supplier launches ‘significant restructuring’

Manufacturer Autins has begun a “significant restructuring” after incurring a £1m loss in the last six months.

Its share price was down nearly 30% in early trading as shareholders responded to this morning’s announcement.

The Rugby-based company has been waiting for a recovery in volumes of car production but semi-conductor shortages, the war in Ukraine and inflation continue to create a drag on the companies it supplies.

Autins is principally an automotive insulation supplier although it has sought to diversify into non-automotive sales, which now account for around one-fifth of its sales.

Sales to the automotive sector were disrupted again by the ongoing issue of the availability of semi-conductors, which is causing delays at car manufacturers. Autins expects this to continue to be a problem for the next six months.

Autins chief executive Gareth Kaminski-Cook has previously acknowledged the company is “over-dependent” on Jaguar Land Rover, and this morning the car maker has revealed its increase in production was lower than planned because of the microchip issues.

Margins have been under pressure because of rising costs, and Autins said it is “taking actions to reduce operational costs and improve profitability”.

In a statement to the stock market, Autins said: “The group has commenced significant restructuring actions in the UK and concluded a number of key commercial discussions that help to restore gross margins.

“These initiatives will improve profitability immediately and, as a result, losses are expected to significantly reduce in the short term and the group will be better positioned to take advantage of a future recovery of the European automotive market.”