26th Jun 2019 11:46
(Alliance News) - Autins Group PLC on Wednesday reported sinking to a loss in the first half amid "challenging" trading conditions on the ongoing political and economic uncertainty in the UK and China.
Due to the current period of "general market uncertainty", Autins has suspended its dividend for the six months ended March.
"The board reaffirms its intention to reinstate its progressive dividend policy, having taken account of net earnings, gearing levels, expected capital requirements and growth opportunities, as and when market conditions stabilise and the trading performance of the group improves," the company added.
In the first half of 2018 , Autins declared a 0.4 pence per share dividend.
In the six months to March 31, the acoustic and thermal management technology firm sunk to a pretax loss of GBP976,000 compared to a profit of GBP54,000 in the corresponding period a year earlier.
Autins' first half revenue decreased 14% to GBP13.7 million from GBP15.9 million the year before.
The company's administrative expenses were 4.5% higher at GBP4.6 million from GBP4.4 million the year before.
Chief Executive Gareth Kaminski 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."
Kaminski added: "Despite this market backdrop, the group continues to see positive momentum in its business and while further recovery is required to return to the levels seen in the first half of 2018, the first half of 2019 has seen an improvement on the second half of 2018. The board is pleased with sales growth in Germany of 44% compared to the prior year and the continued strong growth of Neptune product sales."
Autins said operational efficiencies and cost mitigation measures remain a "key priority".
Since the end of its financial year, Autins said "Brexit disruption has continued".
"There has been a clear 'destocking' within the sector following the passing of the assumed Brexit date of March 29 which has severely impacted results for April and May," the company explained.
Autins expects its margin improvement to continue, but at a slower pace in the second half than originally anticipated. As a result, Autins expects its full year earnings before interest, tax, depreciation and amortization to be "close to break-even".
In financial 2018, Autins reported an Ebitda loss of GBP900,000.
Shares in Autins were down 3.6% in London on Wednesday at 27.00 pence each.
Related Shares:
Autins Group