Autins Group warns on profits as margin recovery hits a snag
Source - SMW
Automotive supplier Autins Group warned on profits on a slower-than-expected improvement in margins as major customers rein in orders and plant shutdowns continued at an 'unprecedented' pace amid Brexit uncertainty.
Although full-year revenues were expected to be broadly in line with market expectations, the company anticipated that the group's earnings (EBITDA), as a result of the delay in margin recovery, would be close to break-even for the full year.
This company said it expected that margins would increase at a slower pace in second half of the year than initially anticipated due to the 'challenging market conditions.'
The dour update comes as the company reported fall in margins and lower revenue during the first half of the year.
For the six months to 31 March, revenue fell to £13.66m from £15.86m a year earlier , in line with management's expectations. The group's gross margin was down slightly at 26.5%, from 26.9%.
The company said it would remain focused on cost mitigation measures for the remainder of the financial year and beyond and expected to see continued 'improvement in margin progression, supported by a broader customer base and further diversification of Group revenues.'
At 9:07am: (LON:AUTG) Autins Group Plc share price was -10p at 26.5p