24 June 2025

Autins Group plc

(the "Company" or the "Group")

Final Results

Autins Group plc (AIM: AUTG), the UK and European based manufacturer of our proprietary Neptune melt-blown material and specialist in the design, manufacture, and supply of acoustic and thermal insulation solutions, announces its results for the 18 month period ended 31 March 2025 (following the change of its accounting reference date, announced on 27 June 2024).

Financial Summary

Financial performance in the 18 month period to 31 March 2025, compared to the 12 month period ended 30 September 2023 (FY23):

·      Revenue was £31.1m (FY23: £22.7m)

·      Gross profit was £9.9m (FY23: £6.7m)

·      Gross margin was 31.9% (FY23: 29.5%)

·      EBITDA¹ before exceptional costs was £2.2m to (FY23: £1.2m)

·      Loss before tax was £1.7m (FY23: £1.0m)

·      Loss per share was 3.05p (FY23: 1.67p)

·      Net cashflow from operating activities was £3.6m (FY23: £2.1m)

·      Operating working capital improved by £1.6m (FY23: £0.8m)

·      Cash and cash equivalents were £1.4m (FY23: £2.1m)

·      Net debt² excluding IFRS16 lease liabilities was £1.1m (FY23: £1.6m)

1. EBITDA is adjusted for exceptional costs.

2. Net debt is cash less bank overdrafts, loans, invoice financing, hire purchase finance and excludes right of use lease liabilities.

Operational Highlights

·    New Executive team in place (Andy Bloomer - CEO from April 2024 and Des Dimitrov - CFO from March 2025). 

·     "Survive and Thrive" strategy embedded within the business with positive results.

·     Cost control and efficiency improvements have allowed us to reduce losses resulting in a small net profit in the final quarter of the financial period.

·     We have commenced repayment of our existing loans, ensuring covenant compliance and are forecasting to be long term debt free by July 2026.

·    We have won new business both in UK and in Germany winning £4.7m per annum in recurring revenue, with more expected in the current financial year. Our won new business includes first awards for our new AuDuct and AuTrim products.

·     Our continued commitment to ESG has led to an 58% reduction in the material sent to landfill over the last year.

Outlook

·   Like most UK/EU automotive component manufacturers, we are facing a level of short-term revenue uncertainty due to US tariff introduction. We are encouraged by the UK/US deal and are hopeful of something similar to follow for the EU.

·     Despite this, due to our recent new business wins, coupled with our cost and efficiency improvements, we expect to deliver a net profit in FY26 which would be our first since 2017, and improved profitability thereafter.

Andy Bloomer, Chief Executive of Autins, said:

"We are very proud of the results we present today, they act as a demonstration of the hard work from all the Autins team to transform this business and show we are moving in the right direction.  Our "Survive and Thrive" strategy has been embedded across the business bringing efficiency and other tangible benefits. We expect to continue to see the positive results of this over the coming years. 

Our core business is performing well with new business awards setting us on a growth trajectory.  Our first wins with our new AuDuct and AuTrim products provide even greater excitement for our future."

Chair's statement

Overview

The 18 month period to 31 March 2025 ("FY25") was a period of reset and increased stability for the Group. 

The automotive market as a whole remains cautious.  Manufacturers are increasingly moving to electric platforms but are still waiting for consumer demand to readjust.  More recently, the imposition of tariffs from the USA has further caused OEMs to re-evaluate their global supply chains.  While any negative impact for the UK has been significantly reduced through the recent UK/US trade deal, European OEMs are still working through the implications for their European production that would normally be sold into the USA.

Since April 2025, companies in the UK have also had to absorb significant increased employment costs through increases to the minimum wage and changes to national insurance. This has put additional pressure on UK supply chains.

Although this seem to be a rather challenged backdrop, we believe that the current market provides exciting opportunities for growth for Autins.  We have made many changes in FY25 to refocus and re-energise the Group and look forward to FY26 with renewed confidence.

A new executive team

We have refreshed our executive Board team.  In April 2024, we welcomed Andy Bloomer as CEO of the Group and in March 2025, Des Dimitrov was formally promoted to CFO, having supported Andy as the most senior financial executive in the Group since November 2024.  These changes have brought a very positive energy to the Group and a sharp focus on the implementation of our "Survive and Thrive" strategy.

A new strategic focus

The first part of our "Survive and Thrive" strategy is to re-establish earnings per share to the Group after a period of losses.  As such, we have focussed on reducing costs and improving operational efficiency in the business.  These measures are detailed in the CEO Statement that follows and have resulted in a small net profit in the final quarter of FY25.  This was an improved performance compared to our initial internal expectations which resulted in the Group ending the period with strong cash balances and reduced net debt.  The Group has met all of its banking covenants in FY25 and continues to make all scheduled repayments of our bank loans. Our UK fixed term loans are all due to be repaid by July 2026. Our financial performance for FY25 is set out in detail in the CFO Report that follows.

The second part of our strategy is to thrive.  We will do this primarily through organic growth and also consider acquisition opportunities.

Our organic growth is driven by a combination of increasing our sales share with existing customers and winning new customer business supported by bringing innovative products to the marketplace.   In FY25, we launched our Auduct and Autrim products that enable us to sell higher value products to new and existing customers and allow us to offer solutions to new areas of the cabin.  In addition, we have invested in research and development for our proprietary Neptune material, resulting in improved operational delivery of our core Neptune product. These innovations provide a more commercial platform for future growth.  In addition, by introducing these new products and materials, we establish ourselves as an innovation partner for our customers which will lead to more in-depth, significant relationships with them.

We experienced growing levels of enquiries in FY25 across all regions.  In the UK, we won contracts for anticipated annualised sales of £1.3m, the majority of which are expected to start in FY26.  In Germany, we won contracts for anticipated annualised sales of €4.0m, the majority of which are expected to start in FY27.  The automotive industry is a long-term business, with contracts for new platforms typically lasting six to eight years, so the sales success in FY25 will provide a solid foundation for the business for many years to come.

We have also begun to explore growth through acquisition.  We believe that there are a number of businesses with attractive core products and existing platform sales that have struggled to adapt to the changing demands of the automotive industry over the past few years.  These require restructuring but could prove attractive additions to our core business in the right circumstances.  We have demonstrated our ability to "right size" a business through our own recent restructuring and believe that these skills can be used to consolidate other businesses into our Group.  A key part of our "thrive" strategy is to establish Autins as a market consolidator over the coming years.

A new engagement with our shareholders

We understand that an important part of our strategy will be to re-invigorate interest in the Group with existing and potential investors which is a key part of our strategy, working with our broker to do so. We are also committed to engaging with retail investors, alongside our institutional investor base, which we intend to do throughout the year, via our website and other investor communications. 

Outlook

The Board expects the business to deliver a net profit for FY26, which we expect to continue in FY27.

The net profit for FY26 is not expected to be delivered evenly over the year. The first half of the year is being impacted by higher costs of employment and uncertainty regarding US tariffs. Short term sales will also be impacted by planned shutdowns to prepare for new electric platforms in our customer base.  However, our sales are forecast to increase in the second half of the year, when new contracts ramp up to full production, which we expect to continue into FY27. 

The Board is very encouraged by the progress of its "Survive and Thrive" strategy and believes it has established a stable foundation from which to develop net profit growth in the future.

Adam Attwood

Chair

CHIEF EXECUTIVE OFFICER'S REVIEW

I am pleased to present my first CEO report since joining in April 2024 and have therefore been CEO for 12 of the 18 month FY25 period.  When I joined Autins, I discovered a Group with good people, products and processes, but one which had lost its confidence over the preceding years, it had spent such a long time trying to ensure it remained in existence that it was struggling to transition to prepare for growth.

I have spent the last 12 months getting to know the teams, learning the business, creating and then enacting our strategy. I am proud of what we have achieved over the last 12 months and am excited for what the future will bring.

Strategic Delivery: "Survive and Thrive"

FY25 has been a transitional period for Autins. Over the past 12 months, we have focused on creating a sustainable platform for future growth through the implementation of our "Survive and Thrive" strategy. The Board, the leadership team, and I have remained singularly focused on delivering against this plan.

Survive: Stabilising the Business

The first phase of our strategy has centred on operational and financial stabilisation. Key achievements include:

·     Workforce optimisation, we have changed shift patterns to improve efficiency as well as ensuring indirect staffing levels are appropriate for a business of our size.

·   Better integration of our Swedish and German operations, enabling better capability and capacity sharing.  For example, sharing manufacturing best practices contributed to the German efficiency improvements.

·   Significant reduction in PLC costs, aligning our overheads with the scale of our business we have delivered savings of £0.25m per annum through reduction in executive salaries and other PLC related costs.

·    Operational improvements in our German facility, halving our scrap rate, increasing our material yield and tighter inventory control has helped transform our German business from being loss making at the start of the period to break even by the end with an expectation to move to net profit in FY26.

·   Enhanced production efficiency of Neptune, increasing our knowledge and understanding of raw materials, the production process and finished product has allowed us to improve quality and available capacity for future planned volume increases

·   Continued inventory management improvements, unlocking working capital while minimising supply chain risk. Our improvements freed up £1.6m in operating working capital in FY25.

·   Restructuring and repayment of existing loans, Over the period we have repaid £1.4m on our outstanding loans, ensured on-going covenant compliance and improved financial stability with a forecast to be long-term debt free by July 2026.

Thrive: Building for Growth

Having laid the groundwork, we transitioned our focus to future growth, with important progress made across the following areas:

·    Diversification of our customer base, with new relationships developed in the automotive, commercial vehicle and off highway space reducing our overall reliance on UK automotive OEM's. Increasingly, European customers are specifying our material as their preference, giving us confidence that our German business, in particular, will grow significantly faster than the overall automotive industry in the coming years. 

·   Product innovation and investment, primarily the development of AuDuct and AuTrim, both of which secured initial project wins during the period (£0.8m per annum starting in FY26).  AuDuct is our proprietary fibre-based duct solution offering significant performance improvements over conventional blow moulded ducts, whilst AuTrim is our fibre-based A-surface material offering a cost-effective aesthetic alternative to hard moulded plastic components.

·     Expansion of commercial capacity, including the recruitment of sales staff to work in adjacent markets as well as key industry experts to assist with new business acquisition. Adding capacity and capability has allowed us to significantly increase our pipeline of potential sales in the last 12 months.

·    Improving revenues per vehicle, introduction of new higher valued product lines including AuDuct and AuTrim, as well as better penetration of our existing product lines allows us to have more content on upcoming vehicle platforms.   

·     Strengthening of internal processes, including enhanced forecasting, reporting, and communication has enabled faster, more informed decision-making, better communication across the business and improved buy in of our strategic priorities.

·     Capital investment in Germany, with new machinery installed to support recently awarded contracts and our continued European growth trajectory.  The new machinery increases our capacity for additional business, such as a new £2m per annum contract which started at low volume in Q1 FY26 and is expected to ramp up to full production by Q3 FY26.

Business performance

Overall, Autins has continued to demonstrate resilience and strategic focus amidst on-going industry headwinds. While our revenue performance remains closely tied to automotive production volumes, we are increasingly decoupling from the fluctuations of UK vehicle manufacturing. Our expanding presence in European markets is beginning to diversify and strengthen our revenue base, reducing reliance on domestic automotive production and supporting more balanced, sustainable growth.

In the most recent six-month period to 31 March 2025, we recorded a 2% reduction in revenue, while simultaneously delivering a 2.6 percentage point improvement in gross margin and a 2.1% uplift in adjusted EBITDA, compared to the prior six months. These improvements underscore that we are moving firmly in the right direction in terms of efficiency.

ESG Commitment

Environmental, Social and Governance (ESG) considerations remain embedded in our strategy and culture. We are acutely aware of the impact our operations have on employees, communities, customers, and the environment. We take this responsibility seriously and are committed to continuous improvement in all areas.

One area where we have made exceptional progress is waste reduction. Over the past year, we have achieved a 58% reduction in material sent to landfill, a testament to our commitment to environmental stewardship and operational efficiency.

Looking Ahead

This review marks a turning point in Autins' journey. While we remain mindful of the challenges that persist in our industry, the decisive actions taken throughout FY25 have laid a strong and stable foundation for future success. As we look ahead to FY26, we do so with renewed confidence and ambition. Our plans are underpinned by a clear growth strategy, and we are forecasting a return to net profitability in the coming year.

My ambition for Autins is clear: to position Autins as the market leader in acoustic and thermal management solutions for both the automotive sector and adjacent industries. By deepening relationships with our existing customers and expanding into new markets, we are confident in our ability to drive sustained and profitable growth.

We also believe there is the opportunity to position Autins as the consolidator of choice for UK and, in time, European OEMs. By selectively pursuing acquisition opportunities that align with our strategic objectives, we will enhance our capabilities, broaden our product range, extend our market reach, and accelerate our growth trajectory.

This strategy of organic growth combined with targeted consolidation will enable us to increase both revenue and earnings per share, creating long-term value for our shareholders, whilst also positioning Autins as a market leader in acoustic and thermal management solutions.

None of the achievements listed above would be possible without our people. I would like to extend my sincere thanks to every member of the Autins team for their hard work, commitment, and contribution over the past year.  I would also like to thank the Board for their support since I joined Autins. We have a great team, and I am looking forward to going on this journey together.

Andrew Bloomer

Chief Executive Officer

Financial performance in the 18 month period to 31 March 2025, compared to the 12 month period ended 30 September 2023 (FY23):

·      Revenue was £31.1m (FY23: £22.7m)

·      Gross profit was £9.9m (FY23: £6.7m)

·      Gross margin was 31.9% (FY23: 29.5%)

·      EBITDA before exceptional costs was £2.2m to (FY23: £1.2m)

·      Loss before tax was £1.7m (FY23: (£1.0m)

·      Cashflow from operating activities was £3.6m (FY23: £2.1m)

·      Operating working capital improved by £1.6m (FY23: £0.8m)

·      Cash and equivalents were £1.4m (FY23: £2.1m)

·      Net debt, excluding IFRS16 lease liabilities was £1.1m (FY23: £1.6m)

·      CBILS loan repayments continued, MEIF repayment recommenced in July 2024

Key actions during the period:

·      Focus on margin improvements achieved through labour efficiency and materials projects

·      Property rental increases have been absorbed through on-going costs optimisation initiatives

·      Continued investment in new equipment for improved production efficiency.

·      Loan repayments are in line with loan agreements; we expect full repayment of our UK long term loans by July 2026.

FY25 18 month performance overview

The period under review was a time of changes and challenges. Towards the end of the period, I assumed the role of Chief Financial Officer, so this is the first financial review I present to our stakeholders. In my new role I have continued to increase the financial transparency across the Group, reemphasising the importance of allocating capital in the most productive way so that we remain competitive in our markets and position ourselves for growth. Debt servicing is continuing in line with the loan agreements with expected full repayment of UK long term loans by July 2026.

Revenues and margins

The challenging automotive market affected our revenues across all Group companies in this 18 month period, after the recovery in the previous financial year. We have won significant new contracts, most of which commence after the period end and we expect to see their benefit in the new financial year and beyond. In the face of challenging revenue performance, we continued optimising our costs structures which led to further improvements of our gross margins. The improvement in our margins primarily derived from materials projects, labour efficiency, utilities reductions and strengthening of Sterling against the US dollar, which certain of our materials are purchased in. Transport costs across the Group improved, driven by rate negotiations with suppliers and improved planning and logistics. Additionally, there were cost savings in many other cost categories in comparison to the prior year, the most notable being energy.

Other operating costs and EBITDA before exceptional costs

Combined distribution and administrative expenses, before exceptional costs, for the 18 months were £10.6m, compared with £7.4m in the prior 12 month financial year, a meaningful reduction towards right-sizing the business. EBITDA before exceptional costs in the last six months of the 18-month period improved significantly as most of the actions taken started to deliver.

Loss before tax

The net finance expense for the 18 month period was £0.7m (FY23: £0.5m), which is a continuing decreasing trajectory as repayments are made on fixed rate borrowings. In FY23 there was a £0.2m profit on disposal from our JV share to our JV partner, Indica Industries UK Limited.

Currency       

The Group's overseas operations and certain key raw material suppliers require the Group to trade in currencies other than Sterling, our base currency. During the period, operational transactions were conducted in US Dollar, Swedish Krona and Euro. Certain purchases of key raw materials for production are transacted in US Dollars and we implemented a hedging structure. As Euro revenues continue growing, the Group continues to benefit from natural hedging, arising from its structure and trading balances. 

Borrowing and net finance expense

Total borrowings for the Group, excluding IFRS16 lease liabilities, reduced significantly to £2.5m (FY23 £3.7m), as repayments have been made on the CBILS and the MEIF term loans, whilst hire purchase liabilities marginally increased following further investments in plant and equipment in Germany and in the UK. All term loans have fixed interest rates, and the slight reduction in the finance expense is a consequence of borrowing reduction following repayments made. As a result, cash and cash equivalents decreased year on year, however overall cash headroom remains strong. Our Group working capital facilities remained entirely undrawn at the year end. As noted, the Group has commenced repayment of the MEIF term loan, which requires full settlement by 31 January 2026. The lender has also waived covenants indefinitely.

The Board continues to review the Group's banking and funding arrangements with a view to ensuring that they remain appropriate for its planned growth.

Cash, working capital and net debt

The Group ended the period with a net debt position of £1.1m excluding IFRS16 lease liabilities (FY23: £1.6m). The Group has continued to optimise operating working capital during the period, improving it by £1.6m across the Group.

Taxation

The effective tax rate in the period was below that expected based on current UK corporation tax levels. Given the quantum of available tax losses compared to expected profitability in the next two years, the Group has not recognised the majority of current period losses as a deferred tax asset. The Group has total tax losses of £11.5 million, the majority of which are in the UK, to offset against future taxable profits.

Loss per share and dividends

Loss per share for the 18 month period was 3.05 pence (FY23: loss per share 1.67 pence) reflecting the net loss in the period. The weighted average number of shares was 54,600,984 in the period (FY23: 54,600,984). The Board are not proposing a final dividend for the current period (FY23: £nil) and no interim dividend was paid (FY23: £nil).

Going concern

The financial statements, based on current and forecast trading, the annual cash flow forecasts and the available sources of finance, have been prepared on the going concern basis, further details of which are provided in the basis of preparation of financial statements.

Desislav Dimitrov

Chief Financial Officer

Consolidated income statement

For the 18 months ended 31 March 2025

All amounts relate to continuing operations.

Consolidated statement of comprehensive income

For the 18 months ended 31 March 2025

Consolidated statement of financial position

As at 31 March 2025