Autins FY sales grow, earnings turn positive

20th Oct 2023 08:46

(Sharecast News) - Insulation solutions group Autins said on Friday that annual sales and profits had improved, pushing underlying earnings back into the black and leaving it in a "positive position" to engage with lending partners.

Updating on trading, Autins said group sales increased 20% in the year to 30 September, to £22.5m, with sales continuing to gain momentum in the second half, increasing by 7.5% to £11.7m.

Gross profits improved roughly 55% to £6.5m, driven by an increase in revenues and "a strong recovery" in gross margins of 6.5 percentage points to 28.9%.

The AIM-listed group also said it had continued to "successfully control overheads", and underlying earnings were now expected to come in at £1.0m, compared to a loss last year of £1.1m.

Autins noted that the improved trading performance and stability of its net debt, to £1.8m from £2.0m, would put it in a positive position when engaging with lending partners regarding covenants for March 2024 onwards.

It also expects a continued recovery in the automotive market, which should led to further growth in sales and EBITDA in the current financial year.

As of 1050 BST, Autins shares were down 4.35% at 11.0p.

Reporting by Iain Gilbert at Sharecast.com