Auto supplier Autins braces shareholders to expect lower 2017 growth

Automotive supply company Autins Group has again braced shareholders to expect lower than anticipated levels of growth in 2017 after over-estimating the strength of its business.

The Warwickshire-based group was rocked by the departure of long-time chief executive Jim Griffin last month when the extent of the problems became known.

The announcement saw 30% wiped off the value of the newly-listed company when it endured a torrid time on the markets.

In its full year results statement today, the group said it expected “solid growth” this year but probably not as much as it had originally hoped.

It said: “In the near term the profile of our results will be significantly weighted to the second half of the year and is dependent on successful deliveries of Neptune product into the market.

“We expect solid growth for the full year, however, as already announced, this will fall significantly short of previously anticipated levels due to the timing and rate of growth in our automotive business not being as strong as we had expected.

“The board remains confident of the importance of our diversification strategy and we are committed to realising the full potential of the Autins Group.”

It has moved to fill the void left by Mr Griffin, who spent 27 years with the group, by appointing Michael Jennings as interim chief executive.

It will also be calling on the experience of non-executive directors, Ian Griffiths and Terry Garthwaite. Mr Griffiths is the former managing director of GKN Automotive and brings significant automotive and non-executive experience to the business.

Mr Garthwaite is a former Group Finance Director of Senior and also brings a wealth of financial knowledge from quoted groups, as well as extensive experience as a non-executive director.

Alongside this, the group said the principal focus of the board had been investment in the senior management team to further support growth and international ambitions. This has included the appointment of a Group Sales Director and a Group Quality Director, the latter starting next month.

“With the acquisition of the joint venture partner in our Swedish business, the minority interest in our German business and the trade and assets of a flooring company in Sweden, we now have a strong foundation upon which to grow,” it said.

Had it not been for the growth forecasts, the group, which designs, manufactures and supplies acoustic and thermal insulation to the automotive industry, would have been basking in a decent set of inaugural results.

For the year to September 30, 2016 the group saw revenue increase to £20.4m (FY 2015: £19.8m), while gross profit increased to £6.5m (FY 2015: £6m).

However, operating profit decreased to £0.3m (FY 2015: £1.2m) and pre-tax profit decreased to £0.2m (FY 2015: £0.9m).

Net cash at year-end was £3.3m (FY 2015: Net debt £5.5m), while earnings per share decreased to 2.03p per share (FY 2015: 5.56p per share). It has proposed a second interim dividend of 0.4p.

Adam Attwood, chairman, said: “These results reflect the investment and progress being made in the business to drive sustainable growth.”