Autins Group PLC on Monday said it is taking action to reduce operating costs and improve profitability as its shares plummet following poor end-of-year results.

Autins is a Rugby, Warwickshire-based industrial materials technology business that specialises in the design, manufacture, and supply of acoustic and thermal products.

Autins shares dropped by 36% at 8.98 pence each in London on Monday morning.

For the second half ended September 30, Autins expects its loss before interest, tax, depreciation and amortisation to be around £1.0 million, widened from £300,000 in the first half.

Group sales in the second half were similar to the first half, when they were £300,000.

There was a reduction in the sales rate in the fourth quarter, which Autins attributed to further production line disruption at its major customer, which it didn’t name. It added that it expects disruptions to continue in the first half of the 2023 financial year.

Autins said it has commenced ‘significant restructuring actions’ in the UK to try and restore gross margins. These initiatives will ‘improve profitability immediately’ and, as a result, are expected to significantly reduce losses in the short-term, it said.

Cash and cash equivalents available to the company were £1.5 million on September 30, up by 15% from £1.3 million a year prior.

Autins ended the period with net debt of £2.4 million, down by 11% from £2.7 million at the end of the 2021 financial year.

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