Autins Group Plc · LSE:AUTG
Autins — H1 2022 Earnings Presentation
19 slides from Autins's earnings presentation, Mar 31, 2022
Slide 1: Autins Group – Interim Results Presentation
Autins Group – Interim Results Presentation Six months ending 31 March 2022
Slide 2: Agenda
Agenda • Highlights • Financials • Market Activity • Summary 2
Slide 3: Highlights
01 Highlights 3
Slide 4: Financial Highlights
Financial Highlights • Revenue decreased by 31.5% to £9.39m (H1 21: £13.7m). • However, H1 22 revenue at £9.4m is only £300k lower than H2 21 at £9.7m • Auto market impacted by shortage of semi-conductors and Ukraine war. Flooring saw a slow down of home refurbishment post Covid • Gross margin reduc
Slide 5: Operational Highlights
Operational Highlights • OEM’s have record levels of unfulfilled orders and our customer base expects to see recovery • UK auto demand was 8.3% higher in reporting period than H2 21 • German auto sales flat in reporting period compared to H2 21, but post period end running 19% ahead of prior year •
Slide 6: Financials
02 Financials 6
Slide 7: Financial Highlights
Financial Highlights Key Financials H1 22 VS H1 FY22 H2 FY21 H1 FY21 £k H2 21 Revenue 9,392 9,719 13,712 (327) Gross Profit 2,353 2,419 3,909 (66) Gross margin % 25.1% 24.9% 28.5% Furlough income 0 362 287 (362) EBITDA -357 -87 1,181 (270) Profit/(loss) after taxation -1,381 -1,094 10 (287) Operatin
Slide 8: Cashflow H1 22
Cashflow H1 22 H1 FY22 Analysed Operating Activities (332) (332) Debtors (360) Inventory 326 Creditors 5 (29) JV dividend income 20 Capex (153) (133) Finance Costs (399) (250) IFRS 16 lease costs (366) (515) Net Equity raised 2,800 2,800 H1 22 total 1,541 1,541 1541 £m Group Cash Head room June 2022
Slide 9: Market Activity
03 Market Activity 9
Slide 10: Auto enquiry activity is coming back
Auto enquiry activity is coming back New quotation activity has increased A healthy live enquiry pipeline: significantly since January 2022 as project teams returned to offices New Jan – Apr Jan to Apr Change Market Total live enquiry quotations 2022 2021 pipeline UK £12.6m £1.3m +£11.3m UK Auto £19
Slide 11: Auto market outlook – signs of improvement
Auto market outlook – signs of improvement • Backlogs still remain high which will fuel recovery: • JLR 160k vehicles, Renault Group 159k, Stellantis 807k, Ford 53k • Car registrations and production are still below prior year and 2019 levels • EU registrations YTD are -14% vs 2021 and -45% vs 2019
Slide 12: Other markets
Other markets Flooring: • Post Covid refurbishment market slowed during the latter part of 2021, but now stable at a run rate of c.£5m pa • New product Schluter REFLEECE has now been launched in Europe and UK Commercial vehicles: • The commercial vehicle market was impacted by the semi-conductor cri
Slide 13: Other markets
Other markets Office pods: • Office refurbishment activity is very high as employers re-invent the workspace environment to attract staff back into the office • Popularity of office pods has grown exponentially with almost every furniture design studio including a pod offering in their portfolio • E
Slide 14: Electric vehicles and NPD
Electric vehicles and NPD Themes for new NVH solutions: • Sustainable solutions • More fibrous materials rather than foams Encapsulation • Lightweight applications New Developments: • 100% recyclable version of Neptune • Green Neptune – less virgin polymer • Waste recycling project with Aston Univer
Slide 15: Cost inflation and labour challenges
Cost inflation and labour challenges Cost & Margins Pressures: • Energy cost increase £0.6m+ pa • Production labour rates: 7.5% increases in H1 of c.£0.2m, with more planned for FY23 • Lease rates push with area logistics growth £0.1m • Material cost pressures c.3-5%: each 1% is c.£0.22m across the
Slide 16: ESG
ESG ENVIRONMENT: • 25% reduced carbon footprint at Rugby site • Roll out learning to other sites • LED lighting installed throughout UK and Sweden • We will reduce carbon footprint by a further 92% in 2022 • Localised sourcing across a number of materials SOCIAL: • Staff churn reduced from above 30%
Slide 17: Summary
04 | Summary y 4
Slide 18: Strategy for Growth
Strategy for Growth • Protect the existing business during the semi-conductor crisis in order to capture the market recovery • Maintain focus on our core NVH automotive market, which remains our biggest growth opportunity: – Bring 100% recyclable Neptune to the market – Win on EV platforms with esta
Slide 19: Summary
Summary • OEM’s have record order backlog and recovery should begin in latter part of 2022 • We have seen improvement in sales of Neptune and sales into the German automotive, flooring and commercial market • High cost inflation will challenge margins so we continue to put focus on cost reductions a