Our solutions
are driven
by you
ANNUAL REPORT AND
ACCOUNTS 2021
Autins Group PLC Annual Report 2021 1
Contents
Strategic report
Operational Highlights
At a glance
Technology and innovation
Our markets
Chairman’s statement
Chief Executive Officer’s review
Adding Value Responsibly
Business model
Strategy
Strategy in action
Responsible business
Our commitment to ESG
Our Stakeholders
Financial review
Key performance indicators (‘KPIs’)
Principal risks and uncertainties
Statement of Directors’ responsibilities
Governance
Board of Directors and senior management
Corporate governance statement
Directors’ report
Director’s remuneration report
Audit Committee report
Financial statements
Independent auditor’s report
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated statement of financial position
Parent company statement of financial position
Consolidated statement of changes in equity
Parent company statement of changes in equity
Consolidated statement of cashflows
Notes to the financial statements
Directors, secretary, registered office and advisors
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Solving your
acoustic and
thermal challenges
OUR PURPOSE
Autins is a specialist in solving
acoustic and thermal problems.
Historically, we focused on the
automotive industry but we are now
diversifying into other industries such
as commercial vehicles, flooring,
office pods and building applications.
We have a unique product offering,
due to the breadth of our materials,
products and manufacturing
processes and a highly responsive
technical support service, which is
valued by customers.
Net debt2
£2.7m
FY20: £1.9 m
£
Revenue
£23.4m
+8.9%
FY20: £21.5m
EBITDA1
£1.1mFY20: £1.1 m
£
Cash from Operations
£1.0mFY20: £1.5 m
Financial overview
Adjusted gross profit
Earnings per share
£6.3m1
(27.0%)
+5.4%
FY20: £6.0 m1 (28.0%)
Operating loss
-£0.7m
FY20: -£1.3 m
-2.74p
FY20: -4.35p
Final dividend
Nil
FY20: Nil
1 Adjusted gross profit calculated for FY20 excludes a £0.2 million exceptional inventory impairment. Also in FY20 a further £0.3 million of exceptional
restructuring costs are excluded from EBITDA. There are no such exceptional costs in FY21.. See note 5 for reconciliation.
2 Cash less bank overdrafts, invoice discounting and hire purchase finance, excluding IFRS16 lease liabilities.
Autins Group PLC Annual Report 2021 1
SECTION HEAD
OPERATIONAL HIGHLIGHTS
Revenues increased by
Gross profit increased by
8.9%
to £23.4 million. This reflected a marginal
automotive recovery, but mainly growth of
£1.7 million in non-automotive revenues,
primarily in our flooring applications.
5.4%
to £6.3 million (FY20: £6.0 million). Gross
margin reduced to 27.0% (FY20: 28.0%).
Consistent EBITDA of
£1.1machieved, despite considerable pandemic
and semiconductor disruption impact on
revenues.
£1.0mof debt was repaid from the operating
cash inflow.
Neptune sales increased
64%
to £7.1 million (FY20: £4.3 million) despite
pandemic supply chain disruption.
Flooring sales grew
to £4.7 million (FY20: £1.8 million).
161%
Operational
Hıghlights
Operational
efficiency
improvements and Neptune manufacturing
yield gains achieved to strengthen margins
against disrupted supply chain volume
reductions and related cost increases.
Further strong performance seen in
Germany; sales grew by
69%
to £7.6 million (FY20 £4.5 million) and
EBITDA increased to £0.9 million (FY20
£0.4 million).
Operating cash inflow was
In December 2021, the Company raised
£1.0m(FY20 inflow of £1.5 million) despite £0.5
million additional inventory, primarily
reflecting a strategic buffer investment for
critical Far East supplies.
£3.0m
via the placing of 15 million new ordinary
shares at a price of 20 pence per share with
new and existing investors.
Autins Group PLC Annual Report 2021 3
AT A GLANCE
Accelerating
product
development
Who we are
166Employees
3Countries
5Operating locations
160Customer locations
What we do
WE DESIGN
We use our acoustic and thermal
expertise and experience to research,
test and develop bespoke solutions
and products for our customers.
Innovative design is the starting point
for how we differentiate ourselves.
WE MANUFACTURE
We have a wide range of advanced
manufacturing and conversion
processes which deliver truly world-
class quality products and services,
including the unique and patented
Neptune nonwoven material
manufactured in our Tamworth facility.
WE SUPPORT
We recognise that our products exist
to solve customer problems. We
are focused on providing support
to our customers throughout their
programme life cycles to ensure
those problems remain solved.
Our specialist solutions
ACOUSTIC
Our range of nonwoven products are low
weight and designed specifically to provide
excellent acoustic absorption making them
suitable for various areas in the automotive
sector, office acoustics, and in HVAC
applications.
THERMAL
A number of our materials provide thermal
insulation, whether to protect passengers
from the heat of an engine or to provide
thermal control and so extend battery
life in combustion and electric engines.
Our patented Neptune product has low
thermal conductivity ideal for applications
in automotive and commercial vehicles and
when combined with reflective foils is also
suitable for the construction and HVAC sector.
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Where we operate
UK
TAMWORTH
Materials’ manufacturing, assembly and
conversion operation
RUGBY
Group headquarters, Group technical centre
(laboratory and test site), new product
introduction centre, assembly and conversion
operation
NORTHAMPTON
Joint venture with Indica Industries (India),
materials manufacturing and assembly
GERMANY
DUSSELDORF
New product introduction centre, assembly and
conversion operation
SWEDEN
GOTHENBURG
New product introduction centre, materials
manufacturing, assembly and conversion
operation
Automotive
79Customers
Other markets
21Customers
Neptune 80% lighter than traditional
decoupling treatments
Equivalent acoustic performance but 80% weight
reduction over traditional decoupling treatment
when using Neptune treatment.
Frequency
Neptune Acoustic Decoupling Treatment (12kg/m3)
Traditional Acoustic Decoupling Treatment (60kg/m3)
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Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 5
TECHNOLOGY AND INNOVATION
Technology
and innovation
Expertise in design
Design is an integral part of our core
business. We offer a product design and
development service that starts with
effective customer conversations to
understand their needs.
From prototype part supply through
development and design until part
delivery and approval, this service is
flexible and supportive to ensure customer
requirements are met.
DESIGNING SOLUTIONS
Specialists in bespoke technical
solutions
Our customers require solutions that are
tailored to their specific acoustic and
thermal challenges. We work closely with
our customers from concept through
to manufacture and product launch,
providing engineering design expertise
across projects of all sizes.
Our knowledgeable and experienced team
members are subject matter experts who
specialise in creating bespoke solutions.
We continue to provide support after
product launch to ensure our customers’
problems stay solved.
£0.3minvested in R&D being 1.3% of
revenues (FY20 £0.3 million, 1.5%)
“
By 2030 we forecast 75% of new cars in the UK will be
battery electric. We see this as an opportunity to help OEMs
understand the challenges of NVH in future EV platforms
and to define the future NVH solutions.
“
SHANE KIRRANE
UK Automotive Sales Manager
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Autins Group PLC Annual Report 2021
Our electric vehicle solution
The problem – new sources of noise,
vibration and harshness (“NVH”)
With the removal of the internal combustion
engine (‘ICE’) and therefore engine noise, there
is an expectation of a quieter drive in electric
vehicles. In practice the removal of one major
noise source uncovers a range of different NVH
challenges across the vehicle. Particularly
troublesome are continuous high frequency
noises causing irritation to passengers including
from motors, the battery, the transmission
systems and the climate control systems.
Experience in EV is growing
Autins has already supplied NVH solutions
on numerous electric vehicle platforms and
has developed an innovative product which is
currently filed for patent. During 2021 we have
seen an increase in the number of pure electric
vehicle companies and projects seeking our
advice and support. This will inevitably grow
given the increasing legislation driving the
move to alternative fuel vehicles and therefore
EV solutions will be prioritised within our new
product product development so that we remain
at the forefront in development of new EV and
technology solutions.
Over
34%estimated share of all cars in the
UK that will be electric by 2030
TECHNOLOGY AND INNOVATION continued
Solving
problems
Market-leading technology
Close collabortion shortens development
times and increases the chance of creating
balanced solutions in terms of finding the
optimum weight, performance and cost
for our customers. We use state-of-the-
art predictive software to model acoustic
performance when we are trying to solve
a customer problem or develop a new
product.
Modelling acoustic performance can
be a simple method to tune product
performance, for example making small
theoretical adjustments to reach a specific
customer target. We then work together
with our suppliers and manufacturing
teams to make the required product a
reality, saving time and avoiding costly
trial and error.
50+
materials modelled
“
Acoustics in the work space has become a critical design aspect for
interior designers and the acoustic properties of our Neptune product
are creating significant interest for use in furniture, partitions, ceiling
tiles and office pods.
“
MARTIN LOCKYER
Business Development Manager
TECHNOLOGY AND INNOVATION continued
Over
34%estimated share of all cars in the
UK that will be electric by 2030
Using our skills and Neptune technology
in office pods
The challenge – To supply an
acoustic solution that doesn’t
reduce the interior size of an
office pod
Large open plan office spaces still require
private, quiet places to make calls or hold
meetings. Office pods are the modern and
fast-growing solution. The client wants
to make the office pod soundproof with
excellent acoustics, whilst maximizing its
internal space.
The solution – Neptune’s acoustic,
weight and thickness advantage
Our Neptune material is up to 40% thinner
and lighter than alternative materials for
the same acoustic performance, allowing
the wall and ceiling thicknesses to be
that much thinner and lighter. Our R&D
and Engineering teams worked with
the customer to design different shapes
and thickness of material for different
parts of their office pods and panels and
subsequently undertook safety testing
for the US market. Following this fast
and collaborative product development,
Neptune solutions are now being supplied
for use in office pods destined for offices
of one of the world’s largest technology
customers. This same approach is also
being pursued with other companies.
Neptune is up to 40% lighter and thinner
for any acoustic performance
Equivalent acoustic performance but 40% weight
reduction over competitor microfibre product
when using Neptune.
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Frequency
Autins Neptune – 200gsm, 19mm
Competitor microfibre product – 350gsm, 19mm
Product development and innovation
Our dedication to product development ensures that
we continue to provide innovative and market-leading
solutions. Projects are identified based on future
technology developments and market trends; or in
collaboration with customer and supplier partners.
We analyse material parameters and product data
to develop Autins’ solutions and to drive product
innovation. This includes bespoke acoustic testing and
modelling for application-specific conditions, which
enables us to demonstrate and optimise product
performance and promote weight reduction to create
competitive advantage and generate premium margins.
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Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 9
OUR MARKETS continued
Often this market follows different
economic cycles to automotive, as
demonstrated since the onset Covid where
commercial vehicles have continued to be
in high demand particularly when home
delivery services came of age.
Major customers in the commercial
vehicle market are located close to our
operations in Sweden, central Europe
and the UK and this year we have seen
good progress winning contracts in this
area securing new business with DAF
and Scania. In these contract wins, we
differentiated ourselves as our Neptune
material provided not only superior
acoustic performance but also outstanding
thermal performance, which has become
important in EV’s without a hot combustion
engine to warm the inner cabin.
lightweight and therefore cost effective.
We continue to see the content value
of NVH in electric vehicles is similar to
that needed in combustion engines,
although the solutions needed for EVs
are more bespoke. This is where Autins’
technical expertise is highly valued by OEM
engineering design teams.
We see a huge opportunity to take a
leading role identifying the future NVH
solutions for pure electric vehicles and are
currently in discussions with a number
of established EV players and start-ups to
understand future needs.
Commercial vehicles
Autins products are ideal for commercial
vehicles, which share many of the
same challenges and requirements as
automobiles. Customers in this arena rely
on SMEs to supply many of their parts,
since they are typically producing smaller
volumes, but over a longer period.
OUR MARKETS
Automotive
Identifying opportunities for future growth
Establishment in industry:
Exploratory
Progress
Matured
Automotive market
Automotive NVH (Noise, Vibration
and Harshness) continues to be our
core market, so the global shortage of
semiconductors has had a major impact
on depressing production volumes. The
consensus of industry experts is that
supply constraints are set to continue
limiting production in early 2022, with an
upturn in demand expected in the second
half of 2022, continuing into 2023. Beyond
this both LMC and HIS forecasting agencies
forecast auto demand to grow beyond pre-
covid levels by 2024.
In addition, forecasts by Mordor
Intelligence continue to predict demand
for automotive NVH solutions to continue
growing at a CAGR of just below 6%. The
materials are used for reducing noise,
vibration and harshness and increasing the
ride quality and comfort for passengers
in vehicles. Importantly experts predict
that few materials currently used for NVH
solutions can be substituted by other
technologies in the future. Therefore,
Autins’ broad range of materials and
solutions positions us well to capture share
within this growing market. It is our view
that there is an inexorable desire to have
more comfort in vehicles.
Our customers, within the pandemic
backdrop, remain determined to find new
ways to reduce their costs and, therefore to
consider new material solutions that have
better performance and economic cost
savings. Neptune meets this requirement
precisely, being up to 40% lighter for the
same performance and hence offering
material cost savings.
Autins has increased its share of wallet with
current customers, won new customers in
the automotive sector and is continuing to
work on significant new projects.
Electric vehicle growth
During 2021 all regions witnessed strong
increases in EV sales, with EV growth rates
3 to 8 times higher than for total light
vehicle markets. The global share of BEV
and PHEV doubled from 3 to 6% this year.
Different countries will develop at different
speeds, but as an example of how quickly
EV’s are being adopted, in the UK, driven
by government legislation, it is forecast
that 75% of all new car sales will be battery
electric by 2030.
Autins Group has been active and
successfully supplying NVH solutions
on a number of different vehicles with
leading marques such as Polestar, JLR,
LEVC, AMG and Audi. Our Neptune
material is particularly suited to absorbing
the frequency of noise associated
with many of the sources in EVs and is
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Autins Group PLC Annual Report 2021
OUR MARKETS continued
OUR MARKETS continued
limited acoustic upgrades and this
represents a relatively untapped
opportunity for Autins.
• The office pod designers know furniture
and design, but need acoustic expertise,
which Autins can provide.
• Post year end the Company’s biggest
office pod customer has been awarded
the first purchase orders to supply
Neptune in office pods sold into the US
market and testing continues on metal
ceiling tiles and partitions.
Others
• Autins solutions can be applied into
numerous additional applications,
and we will continue to evaluate
all opportunities, whilst retaining
commercial focus on only the most
attractive ones.
Non-Automotive
Identifying opportunities for future growth
Establishment in industry:
Exploratory
Progress
Matured
Autins has a history of supplying acoustic
and thermal solutions into a variety of non-
automotive segments. Our biggest non-
auto market is the flooring business which
has benefitted from having a dedicated
technical commercial flooring team.
We have now mirrored that model and
appointed a Business Development
Manager for the UK to address other
segments.
Flooring
• Our target markets are the producers of
floor coverings, especially LVT and other
elastic floorings, as these are the fastest
growing markets.
• Our business model is based on high
volumes and not selling directly
to consumers, distributors, or DIY
markets, which are the customers of our
customers. This is highly appreciated by
the flooring industry.
• We offer specific customised solutions
to improve footfall sound reduction,
whilst maintaining a fully secure flooring
solution.
• This is not a standard portfolio, as
every single floor covering has specific
requirements. In contrast to other
underlay producers that offer standard
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Autins Group PLC Annual Report 2021
‘off the shelf” products, we offer a true
consultancy, design and make service
solution, which generates good margins.
• We have over 20 years of experience
in the flooring market and a profound
knowledge of materials, acoustics, and
market trends, which is well known to
decision-makers in the market.
• During the year, sales nearly doubled
due to contract wins in the previous year
and since the year end an innovative new
lifting system for ceramic tiles has been
launched.
Workspace Solutions
• Office pods are increasingly popular in
large companies that created huge open
plan spaces and now realise they need
quiet spaces and privacy, with attractive
aesthetics and acoustics.
• These private spaces need to function
well and must be very space-efficient,
so walls need acoustic treatment and
Neptune being up to 40% more effective
than alternative materials, means walls
can be thinner for the same acoustic
performance.
• There are many companies
manufacturing office pods across
Europe, which have until now received
CHAIRMAN’S STATEMENT
Strategic progress
Continued Strategic Progress despite Automotive
market uncertainty
Group sales for the year were up
8.9%
to £23.4 million.
(FY20: £21.5 million)
“
Despite making progress in key strategic areas and achieving
sales growth in FY21, the performance for the Group has been
constrained due to the global shortage of semiconductors that
limited the ability of our key OEM customers to manufacture
vehicles to meet market demand.
“
ADAM ATTWOOD
Chairman
Financial performance
Sales in our core automotive business
declined in the second half of the year
(compared to H1) due to a reduction in
vehicle production by OEMs caused by
the global shortage of semiconductors.
However, automotive sales in the second
half were still an improvement on the
equivalent period of the prior year
which was severely impacted by Covid
disruptions.
Our German business continued its strong
performance, growing sales by 69% to
£7.6 million (FY20: £4.6 million). This
reflected strong flooring sales and some
additional automotive revenues compared
to FY20.
Adjusted gross margin reduced to 27.0%
(FY20: 28.0%) primarily due to cessation
of PPE sales and raw material cost price
increases which were only partially offset
by continued operational improvements.
EBITDA (after IFRS 16 adjustments) was
stable at £1.1 million (FY20: £1.1 million).
The operating loss for the Group narrowed
to £0.7 million for the year (FY20: loss
£1.3 million).
Net debt (excluding IFRS 16 debt) increased
to £2.7 million (FY20: £1.9 million) and
cash and cash equivalents reduced to
£1.2 million (FY20: £2.8 million). With the
reduced cash headroom and the short term
uncertainty on the timing of recovery in
the automotive market, the Board decided
to raise £3.0 million (gross) via a placing of
new shares to ensure the Company is in a
position to capitalise on market recovery.
In addition, the Company renegotiated
certain of its banking obligations. These
actions were completed after the year end
and are described further below.
Strategy
The business made good progress in key
strategic areas in FY21.
We continued to use our noise, vibration
and harshness (“NVH”) expertise to
diversify into new markets with European
sales increasing by 51% to £9.2 million.
We also made progress diversifying away
from our core automotive market with
non-automotive revenue growing by
53% to £4.8 million. Flooring sales were a
particular highlight and we are also seeing
success in the emerging office pod market.
Neptune, our proprietary melt blown
material, continues to be attractive to
both existing and new customers due to its
specific acoustic and thermal performance
and its lighter weight. It was pleasing
to see Neptune product sales increase
by 64% to £7.1 million in the year. We
are undertaking investment projects to
increase the manufacturing capacity and
operational efficiency of our Neptune plant
in anticipation of continued sales growth.
We remain committed to becoming a
leading NVH specialist to automotive
manufacturers in Europe and continue
to focus on positioning Autins as an
electric vehicle NVH solutions provider.
We are already supplying key brands in
this space and are concentrating our R&D
efforts on increasing our electric vehicle
product solutions while enhancing the
environmental credentials of our Neptune
material by increasing recycled content.
In the short term, we have taken steps to
protect the Group from the reduced vehicle
production caused by the global shortage
of semiconductors. We are well placed
to benefit from the automotive market
recovery once these supply side issues are
resolved.
Post year end placing and banking
facilities
In December 2021, the Group completed a
placing of 15 million new ordinary shares
raising £3.0 million (gross). The Board
intends to use these funds to provide the
Group with a working capital buffer while
the automotive market recovers from
the semiconductor supply issues and to
fund increased working capital for growth
in Germany and for UK safety stocks.
Part of the proceeds will be allocated
CHAIRMAN’S STATEMENT continued
to invest in the Neptune manufacturing
facilities (to further increase capacity and
profitability), and to accelerate electric
vehicle product development and other
commercial activities.
In addition the Group negotiated waivers of
its banking covenants to March 2023 and a
six month deferral of capital repayments.
The combination of these actions has
significantly improved the Group’s
liquidity position.
People
In all areas of our operations, the staff of
Autins have shown energy, initiative and
loyalty throughout the year. We have had
to respond to the lower than expected
demand from our core automotive
market by adjusting our staffing costs
appropriately. As furlough payments
were phased out, we have looked at more
flexible ways of working and I would like
to thank all of our staff for the support and
adaptability that they have shown.
Our people are our greatest asset and we
remain committed to providing a safe and
rewarding environment for all of our staff.
Ian Griffiths stepped down from the
Board in March 2021 having joined at
its IPO in 2016. I would like to thank Ian
for his valuable contributions to our
Board discussions and wish him well for
the future.
Environmental, Social and
Governance
During the year we strengthened our ESG
policy to include commitment targets to
be carbon neutral by 2050 in the UK and
to have achieved a 68% improvement
by 2030. We continuously undertake
initiatives to improve the efficiency of
our manufacturing equipment so that
we use less energy and water, whilst
reducing waste and increasing the
proportion of renewable energy used.
We converted all lighting to LED in the UK
and Sweden during the year. Details of
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Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 15
Outlook
In the short term, automotive revenue
performance will continue to be
constrained by the global shortage of
semiconductors. The Board anticipates
improvement in the supply of
semiconductors during the second half
of 2022 but, due to our financial year end
date, this is likely to have a limited impact
on FY22 automotive sales.
The outlook for our non-automotive sales
remains strong in the short-term and we
will continue to focus on diversification of
customers and markets.
The medium term outlook remains
positive. Retail demand for cars remains
good and this should result in a strong
recovery in automotive sales from current
levels once the supply of semiconductors
has normalised. In addition, innovation
in flooring and demand for our Neptune
technology is underpinning growth in
new markets and driving momentum for
expansion in Europe.
The Board expects these factors to improve
the sales growth of the Group in the
medium term.
ADAM ATTWOOD
Chairman
CHAIRMAN’S STATEMENT continued
progress is covered in the “Commitment
to ESG” section of this report. Key areas
for improvement in the short-term are
continuing reduction of our carbon
footprint at our Tamworth Neptune facility
and a reduction in staff churn.
We are committed to playing our part in
reducing emissions and increasing the
environmental benefits of our products
and working practices. Our future is
about sustainable growth and Autins has
made ESG a central commitment of the
business to support decarbonisation and
a better environment, promote our social
responsibilities and ensure fairness and
promote diversity.
The Board remains committed to
robust corporate governance and risk
management to ensure the delivery of
our strategic ambitions and the financial
health of the Group. We apply the Quoted
Companies Alliance Corporate Governance
Code (the “QCA Code”). The Board is
currently operating with two independent
non-executive directors. We consider
this appropriate in the short term and in
keeping with the cost mitigation measures
that have been applied to all staffing costs
in the year. We are committed to increasing
the number of independent non-executive
directors on the Board as soon as
appropriate in the recovery cycle.
Dividend
No final dividend is proposed.
The Board will continue to monitor net
earnings, debt levels and expected capital
requirements with a view to reinstating
a progressive dividend policy at the
appropriate time.
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Autins Group PLC Annual Report 2021
CHIEF EXECUTIVE OFFICER’S REVIEW
CHIEF EXECUTIVE OFFICER’S REVIEW continued
Chief Executive
Officer’s review
Delivering operational improvements
and accelerating diversification
“
Despite the ongoing semiconductor challenges facing our UK
automotive market, the Group has grown 9% over the past year, driven
by ongoing success in Germany, in the flooring market and sales of
Neptune products. In the short term, our first priority is to protect the
business and ensure that we are in a strong position to capture the
automotive market recovery which will surely come.
Autins has a unique opportunity to establish a leading position in the
development of future Noise Vibration and Harshness needs to EVs
and other alternative fuels.
“
GARETH KAMINSKI-COOK
Chief Executive Officer
Neptune retail sales revenue £m’s
7.1
4.3
H120
H220
H121
H221
FY20
FY21
Neptune sales
+64%
Non-UK sales 39%
Up from 25% in 2020
Non-automotive sales 20%
Up from 9% in 2020 (PPE sales
excluded)
Our materials and solutions contribute
to a quieter, safer, cleaner and more
energy-efficient world.
Autins is an industry-leading designer,
manufacturer, and supplier of acoustic and
thermal management solutions. We apply
our expertise in material technologies to
solve complex and challenging problems
to create better and more comfortable
environments in a wide range of industry
applications including automotive,
flooring, workspace solutions and
commercial vehicles. We manufacture a
range of technical materials, including our
own patented material, Neptune, in our
facilities in the UK, Germany and Sweden,
making us a truly European business.
Growth in a challenging year
Modest market recovery at the beginning
of the financial year delivered some
improvement in volumes, which, when
combined with improved overhead and
operating cost control, led us to finish the
half year with a strong EBITDA, operating
cash flow and net debt position. UK
automotive sales declined from April
onwards as the semiconductor crisis
deepened and this depressed financial
performance in the second half of the
financial year resulting in a consistent
EBITDA for the full year.
Despite these headwinds, it is pleasing
to report that we finished the year with
Group sales up 9% year on year to £23.4
million. German sales flourished, growing
69% to £7.6 million and we capitalised on
significant project wins from the previous
year to deliver flooring sales growth of
161% to £4.7 million and Neptune based
product growth of 64% to £7.1 million.
Delivering the growth strategy
The diversification strategy is progressing
well, where dedicated commercial resource
has delivered non-automotive sales growth
of +60% and now represents 20% of our
sales mix, up from 9% last year (PPE sales
excluded). European sales are now 39% of
the Group sales, up from 25% last year.
We won 32 projects with 22 different
customers during the year, most of which
are blue chip brands. 14 projects were
won with Neptune products. The project
enquiry pipeline value for FY22 and beyond
remains healthy. Continuing our progress
in diversification, we began supply of
Neptune to DAF trucks in September 2021
and post year end have received our largest
purchase order for the supply of Neptune
into the walls and ceilings of office pods to
be delivered to the US market.
Looking forward
In the short term, our first priority is to
protect the business during the ongoing
semiconductor crisis and ensure that we
are in a strong position to capture the
strong automotive market recovery which
will surely come in due course. I would like
to thank our shareholders for supporting
the recent £3.0 million equity raise, which
enables us to protect the interests of all our
stakeholders and enables the leadership
team to focus on driving sales growth in our
core and new markets, whilst improving
the profitability of the operations.
Our Group strategy remains unchanged.
We will continue to leverage the superior
properties of Neptune and our acoustic
and thermal expertise to win market share
in automotive NVH and accelerate growth
in flooring, workspace solutions and
commercial vehicles. We will also continue
to evaluate new, profitable markets and
maintain a laser focus on operating costs
and margins.
Our core market is undergoing its
biggest transformation ever and Autins
has a unique opportunity to establish a
leadership position in the development
of future NVH needs for EV’s and other
alternative fuels. We have extensive
experience in EV’s having provided NVH
problems for JLR, AMG, LEVC and Polestar,
but future fully electric platforms will
create a set of new NVH challenges and we
intend to be at the forefront of developing
the solutions.
GARETH KAMINSKI-COOK
Chief Executive Officer
18
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 19
ADDING VALUE RESPONSIBLY
ADDING VALUE RESPONSIBLY continued
Adding value
responsibly
Our mission
Our vision
To deliver superior value for
our shareholders by being
a trusted partner to our
stakeholders and by creating
a positive workplace for our
employees to excel, whilst
providing first-class solutions
and support to our customers.
To help make the world
a more comfortable and
quieter place to live, work and
thrive, by reducing noise, and
thermal energy waste.
We will do this by providing
specialist acoustic and
thermal solutions to our
customers, whilst at the same
time diversifying the business
into attractive new segments
Our business
model
Innovative technology
Range of materials:
Range of processes:
• Nonwoven PET/PP including Neptune
• Manufacturing
• Thermoplastics
• R&D and program management
• PUR
• Laminates
• Conversion
• Tooling and component design and
testing
Specialist technical support
• Acoustic and thermal experts
• Tailored solutions
• Diagnosis
• Rigorous program management
• Tooling and component design
Continuous innovation and
exceptional service
• Listening to our customers
• Rigorous NPI process
• Fast
• Responsive
• State-of-the-art development
• Customer-focused
laboratories
• Creative culture
Underpinned by our values
Teamwork
Accountability
Expertise
Agility
Creativity
Passion
20
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 21
ADDING VALUE RESPONSIBLY continued
ADDING VALUE RESPONSIBLY continued
Our strategy
• Shareholders
Autins must provide a positive return
for our investors, who have entrusted
management to deliver profitable growth.
Management is totally committed to
delivering superior returns and will work
tirelessly to fulfil the full potential of the
Autins Group.
• Suppliers
Our suppliers should share in the benefit
of Autins’ success, which will be founded
on delivering exceptional service to
our customers, proving our reliability,
complete supply chain transparency and
a willingness to align as partners.
• Regulators
Autins will observe complete
transparency in all dealings with the
relevant regulators and in fulfilling its
obligations of governance.
• Communities
Autins proactively engages with its local
communities as part of its approach to
Social Responsibility. This includes being
aware of our impact on and taking a
responsible approach to the environment,
the communities we work within and
governance compliance.
Strategic pillars
Expand sales in non-automotive
sectors
• Leverage our wide range of material
technology and acoustics and thermal
competence to win business in new, non-
automotive markets.
Accelerate sales in automotive
• Expand our automotive customer
base across Europe, by leveraging the
uniqueness of Neptune, our NVH (Noise,
Vibration and Harshness) expertise
and our technical expertise to win
new customers.
Deliver best in class quality,
service, and cost
Creating value for our stakeholders
• Employees
By striving to create a larger, more
profitable company, we aim to create an
exciting future where more people are
employed doing work that is motivating.
Our staff can expect to work in a safe
place where people will be treated
fairly and with respect. Our teams will
be challenged and constantly learn, so
that we can empower them to be part of
something important.
• Customers
We have a unique product offering, due
to our breadth of materials, products and
manufacturing processes and a highly
responsive technical support service,
which we believe is highly valued by
our customers.
Progress in 2021
Current focus
• Non-Automotive sales increased
+£1.8 million to £4.8 million (+£2.9
million excluding PPE)
• Flooring grew +£2.9 million to £4.7
million
• 7 new accounts opened for workspace
solutions in UK
• Projects won for supply of Neptune to
Scania and DAF trucks.
We will continue to identify
additional operational cost and
overhead improvements, but
the first priority remains to grow
the volumes going through
our plants so that we can
derive full benefit from the cost
improvements.
32 project wins in year to 22 different
customers
• Won contracts to supply leading brands
including Lamborghini, Porsche,
Bentley, Aston Martin, JLR
• Neptune sales increased +64% to £7.1
million and order book is £13 million
(non-disrupted market)
• Enquiry pipeline remains strong.
Specifically, we aim to:
• Continue delivering exceptional quality
and customer service to all customers.
Continue building the momentum of
growth in our non-auto markets of office
pods, flooring and commercial vehicles.
Keep building our reputation as an
automotive NVH specialist in Europe.
• Expand the customer base in Sweden
• Continue to promote Neptune as a
premium technology, which offers VAVE
(value add, value engineering) cost-
saving opportunities for our customers
and a premium acoustic and thermal
solution in electric based vehicles.
Sustainable operating cost and
overhead improvements
• World Class levels of quality and service
• Customer Quality PPM 6
• Customer delivery Service 99%
• Gross margins were only slightly down
despite depressed UK automotive
volumes (explained further in the
financial review section)
• Overheads were further reduced.
22
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 23
STRATEGY IN ACTION
STRONG GERMAN GROWTH
Delivering the
Growth Strategy
Neptune retail sales
revenue £m’s
5.8
15.7
9.4
14.0
4.3
Group revenue
2.6
10.6
4.2
9.5
3.2
5.1
5.2
4.5
H1 20
H2 20
H1 21
H2 21
FY 20
FY 21
H120
H2 20
H1 21
H2 21
FY 20
FY 21
UK Automotive Revenue (£m)
Other (£m)
• +9% YOY total revenue growth to £23.4m
• Other growth +62% (all sales excluding UK auto)
• Sales grew +64% to £7.1m (distrupted)
• Booked business estimated £13m/ann (non-distrupted)
• Covid and semiconductor crisis depressed current demand
EU Revenue
Development £m’s
9.2
Non-auto revenue
development
6.1
3.2
7.1
4.8
H120
H220
H121
H221
FY 0
FY 21
H1 20
H2 20
H1 21
H2 21
FY 20
FY 21
Sweden
German
£ Flooring
£ Non Auto Other
• EU +£3. 1m to £9.2m; Germany +69% to £7.6m
• Group non-auto sales +53% to £4.8m
• 63% of German revenue is non-auto
• Flooring grew +161%
24
Autins Group PLC Annual Report 2021
Neptune Wins
Doubled and
Strong Pipeline
2019
2021
In production
£4.4m
Won awaiting
call off:
£2.0m
Prospects
26.2m
In production
£8.9m
Won awaiting
call off:
£4.1m
Prospects
20.6m
Business won has doubled
since 2019 to
£13m*
with £8.9m already in production
Auto platforms typically run
for a minimum of
6 years
Awards have been slower during
Covid and semiconductor crisis
Winning technology in auto and
non-auto applications
Enquiry pipeline remains strong
Total
Neptune:
£41.5m
£20.6m
Note* all numbers are based on non-
disrupted market basis
Autins Group PLC Annual Report 2021 25
RESPONSIBLE BUSINESS
RESPONSIBLE BUSINESS continued
Our commitment
to ESG
Our future is about sustainable
growth
• Autins recognises that ESG should be
a central commitment of the business
to support decarbonisation / a better
environment, promote our social
responsibilities and ensure fairness and
promote diversity.
• We also recognise that it is becoming a
more important area for our customers
and investors.
• During the year we have therefore
developed a range of measures to help
quantify, measure and improve our ESG
performance.
Environmental
All UK factory lighting was converted to
energy efficient LED lights and water leaks
were fixed, both of which will improve the
carbon footprint in the coming year. During
this current financial period, evaluation
will be completed of the costs and benefits
of solar panels across all sites as part of
strategy to map out complete plan to
carbon zero.
Our Tamworth facility has a much higher
carbon footprint than the Rugby facility,
due to the non-woven Neptune production
process. Production levels of Neptune
increased over 60% during the year and
thanks to various efficiency projects at that
• We have decided to adopt the finnCap 15
point model of measurement, because it
provides a clear framework and relevant
sector measures against which we can
monitor our performance
Monitoring Strategy for ESG:
i.
Measure, monitor and manage
continuous improvement of the key
environmental data points (energy,
CO2, water and waste).
ii. Aim to reduce turnover of the
permanent staff in the UK.
iii. Adopt the finnCap methodology.
plant the increase in carbon footprint was
limited to +26%. Rugby by comparison
reduced by 11%. The overall mix was that
UK operations carbon footprint increased
by +9% and clearly more work has to be
done to deliver real reductions in line with
our net zero targets.
Progress since 2017 is positive. The Rugby
site has received the most attention
because it produces the most finished
products and over four years, we have
achieved a 25% reduction in carbon
footprint at that site. This experience will
inform the improvement plans for our
other sites.
Raw material
off-cuts
returned to
supplier for
reuse
All internal waste streams
recycled and
11%
reduction in the amount of
recycled waste
Reusable energy
increased from
22 to 27%
Individual components:
Units
Company value
(UK only)
All Markets
Median
Performance: Quartile 4 to all markets – note Quartile 1 is best
Energy consumption
CO₂ production
Water consumption
Waste production
Has an environmental or sustainability policy?
vvvvtv
Case study
mwh/£m
tonnes/£m
m3/£m
tonnes/£m
yes/no
188
26
259
19
Yes
29
7
47
1
71%
Supporting our Environment
Our products and solutions are
fundamentally environmentally friendly.
For example, Neptune uses up to 40%
less polymer than alternative products
and our heavy layer material is 100%
recycled. Our Purpose, as a company, is
to reduce noise and energy pollution.
Recyled Waste Streams (tons)
Across our factories we aim to use
renewable energy sources and
technologies that limit impact on the
environment and our carbon footprint.
Through waste segregation and the use
of recyclable materials we have created
reusable waste streams in partnership
with external partners. Metrics of usage
are monitored against targets to reduce
waste and resources.
• Oct 19–Sep 20
• Oct 20–Sep 21
• Increased segregation
Paper
Recycled
Cardboard
Wood
Metal
26
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 27
RESPONSIBLE BUSINESS continued
Social
Autins Group is very proud of its safety
record, the quality of our products and
services and the integrity in the way we
do business with all our partners and
stakeholders. The way in which we do
business is underpinned by a core set of
company values and a code of business
ethics, which are set out within our Annual
Corporate Responsibility Report.
Staff turnover rate in the UK is high and has
not improved during this last financial year.
This is driven by uncertainty across the
automotive sector and very low regional
unemployment. In response Autins has
introduced additional salary tiers for
operators to recognise skill and experience
levels, banked hour schemes to counteract
the end of furlough schemes and more
generous overtime rates. Our overseas
locations benefit from strong retention,
although salary inflation is a common
theme everywhere.
Individual components:
Company value
(UK only)
Units
Actual or
Estimate
Market
Median
Performance: Quartile 3 to all markets – note Quartile 1 is best
Employee turnover rate
Has discrimination policy?
Has community outreach policy?
Has ethics policy?
%
yes/no
yes/no
yes/no
23%
Actual
Yes
Yes
Yes
15%
71%
43%
82%
Case study
Investing in our communities
We are committed to promoting a better
understanding of careers in engineering
and manufacturing, by engaging with
students at events such as careers
fairs at local schools and TeenTech,
the organisation formed to help young
people understand the real opportunities
available in the contemporary STEM
workplace. We also have staff who
volunteer in various homeless charities
who carry out work with homeless young
people and refugees, as well as carrying
out school governor roles.
Our people continue to be involved
in raising money for both local and
national charities. Staff have raised funds
for Macmillan Cancer Support and at
Christmas support the KidsOut Christmas
Tree appeal that provides toys for
children living in local refuge homes.
Governance
The Autins Board is committed to
maintaining the highest possible standards
of Corporate Governance as set out
in detail in the Investor section of the
RESPONSIBLE BUSINESS continued
company website under the heading
‘Governance’.
www.autins.co.uk/investors/governance/
Individual components
Performance Quartile 1 to all markets
% women on Board
% independent Directors on Board
CEO pay as multiple of UK median
Is CEO and Chairman role split?
Adheres to QCA Code for Corporate Governance?
Units
Company
value
Market
Median
%
%
*
yes/no
yes/no
0%
50%
8.0
yes
yes
14%
48%
11.6
89%
96%
Case study
Enhancing our corporate governance
The Board undertakes from time to time a full QCA Board Effectiveness Reviews and
formal anti-bribery training, along with company management and staff.
28
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 29
“
We are an international business operating in the global
community – we take our responsibility to be a good
corporate citizen seriously.
GARETH KAMINSKI-COOK
Chief Executive Officer
“
RESPONSIBLE BUSINESS continued
Our values
Teamwork
Accountability
Maintained full engagement of all
leadership through daily face-to-face
Zoom calls, weekly telephone contact with
furloughed staff and biweekly letters and
video apps to all Autins staff from all the
Leadership team, including the Chairman.
We protected the Group’s cash position by
maximising furlough income, minimising
cash out, obtaining CBILS and generating
new revenue of over £1 million in PPE.
We continued to win new business in our
core businesses – c.£10 million (based
on annualised, non-Covid interrupted,
customer expectations) across automotive,
flooring and commercial vehicles.
Expertise
Agility
Three weeks to understand, design,
develop, make and find customers
for a range of face masks for the
public – using our own Neptune
technology, equipment and people.
One week to supply foam parts
to a customer supplying an NHS
contract – 7 million parts made in
three months.
Within 3 weeks we were able to develop
and launch a BSi approved face
covering. The speed of decision-making
from Board through to shop floor was
possible because of inherent material
expertise, commercial acumen, trust
and effective communication.
Creativity
Passion
During the year we worked on residual
PPE items, further developed our office
pods offering with key new customer
trials and sales, and continued to
progress Neptune sales into additional
new automotive sales.
The Autins team loves doing what we do –
during Covid our purpose became about
survival, protecting the jobs of our staff and
temporarily providing PPE, which was in short
supply. Passion makes a difference and this
year our team made a real difference and
in so doing protected the Group for all our
stakeholders.
Living the Autins’ values has helped us cope
well during the Covid crisis. We will continue
to adhere to these values to maximise
engagement and motivation of our people
to deliver value to our customers and
shareholders.
30
Autins Group PLC Annual Report 2021
OUR STAKEHOLDERS
OUR STAKEHOLDERS continued
Our stakeholders
The Board believes that to maximise
value and success in the long-term,
it must engage and consult with its
stakeholders in order to develop
effective and mutually beneficial
relationships with them and,
ultimately, to make better business
decisions.
You can find our Business model and
Strategy on pages 21–23 and see how
we are executing on the strategy on
pages 24–25.
S172 Statement
• As required by s172 of the Companies Act
2006, a director of a company must act
in the way he considers, in good faith,
would most likely promote the success
of the company for the benefit of its
shareholders. In so doing, the director
must have regards amongst other matters
to the:
• Likely consequences of any decision in
the long-term
• Interests of the company’s employees
• Need to foster the company’s business
relationships with suppliers, customers
and others
• Impact of the company’s actions on the
community and environment
• Desirability of the company maintaining a
reputation for high standards of business
conduct
• Need to act fairly between members of
the company
Our stakeholders
Employees
By striving to create a larger, more profitable Group, we aim
to create an exciting future where more people are employed
doing work that is motivating. Our staff can expect to work in a
safe place where people will be treated fairly and with respect.
Our teams will be challenged and constantly learn, so that we
can empower them to be part of something important.
Customers
We have a unique product offering, due to our breadth
of materials, products and manufacturing processes and
a highly responsive technical support service, which we
believe is highly valued by our customers.
Material topics
• Live our values everyday
• Our success is built on the engagement and
motivation of our employees.
• Understand how each person contributes to the
Group strategy and adds value.
• Expect to be challenged and be given the
opportunity to learn and develop.
• Expect to be listened to, trusted, and empowered.
• Aim to minimise turnover of staff and increase the
average term of service.
How does the Board ensure delivery of the
strategic objectives for our shareholders?
• We encourage everyone to try and live the values;
• Regular communication with structured, cascaded verbal
communication, CEO and leadership briefings, written and
on the video Autins app, ‘all hands’ meetings;
• Biannual employee survey, followed by feedback and
employee-led improvement action plans; and
• Twice yearly staff appraisals.
• If customers win, we win.
• We develop solutions, so we need to build trusted
partnerships.
• Bring new technology and innovation
• Show how we provide more value, than the cost of
• Regular engagement through Commercial teams;
• Peer-to-peer communication from CEO and functional
leaders with customers’ Finance, Engineering, R&D and
Quality departments; and
• Visits to Autins’ factories including audits of facilities and
using our products and services.
total management competence
• We must be agile to create value in a fast-changing world.
Shareholders
Autins must provide a positive return for our investors, who
have entrusted management to deliver profitable growth.
Management is totally committed to delivering superior returns
and will work tirelessly to fulfil the full potential of the Autins
Group.
• Financial and operational performance;
• Business strategy and model;
• Leadership;
• Capital allocation;
• Dividend; and
• Governance
• Twice yearly results roadshows, meeting on any
governance matters, our AGM, our RNS, our website
and via contact through our advisers; and
• Since Covid communication has regularly occurred via
phone, Zoom or Teams.
Suppliers
Our suppliers should share in the benefit of Autins’ success,
which will be founded on delivering exceptional service to
our customers, proving our reliability, complete supply chain
transparency and a willingness to align as partners.
• Competitive offering and innovation;
• Reliability and responsiveness;
• Compliance with anti-bribery and corruption laws; and
• Prepared to be a supply chain partner.
Regulators
Autins will observe complete transparency in all dealings
with the relevant regulators and in fulfilling its obligations
of governance.
• Compliance with all relevant legislation.
• Openness and transparency.
• Avoiding conflicts of interest.
Communities
Autins proactively engages with its local communities as part
of its approach to Social Responsibility. This includes being
aware of our impact on and taking a responsible approach
to the environment, the communities we work within and
governance compliance.
• Engage with local and national social
enterprises, charities and school fairs.
• Supporting industry to improve awareness of
opportunities for students and apprentices
• Proactive involvement in industry
associations.
• Daily engagement through purchasing team;
• Strategic face-to-face meetings between leadership to
develop partnerships and alignment;
• Discuss respective strategies, priorities, and
development opportunities;
• Always seek to resolve any matters of concern
proactively and quickly; and
• Proactively seek help in a structured and transparent
way – e.g. during Covid crisis we agreed ‘delayed
payment’ plans.
• Generally we engage with regulators through
our advisers to clarify understanding as and
when needed; and
• We contribute to input for online surveys as
they arise.
• Direct contact with local organisations and agencies
as required, supported by communication on social
media; and
• Productive membership of selected industry bodies
e.g. Make UK.
32
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 33
OUR STAKEHOLDERS continued
OUR STAKEHOLDERS continued
How does the Board balance focus between
short and long-term objectives?
Policy Deployment:
• Policy Deployment (PD) is the methodology we use to execute
strategy and is designed to retain focus on meeting long-
term objectives. PD ensures that the Board can continuously
challenge all elements of the strategy; and
• A Policy Deployment methodology is used to break the five-
year strategic objectives into one-year objectives and plans.
Board meetings:
• Executive reports highlight progress, gaps, and actions to
achieve annual budget and PD stretch targets, using KPIs
aligned to the strategy;
• Part of every Board meeting is allocated to review specific
areas of risk and strategic progress outside of the standard
executive reports. The Board also encourages members of
the Leadership Team to present, at least once a year, the key
developments in their specific areas of the business. This
provides the Board with a wider vision of the business and
an opportunity to test how governance measures are being
adopted throughout the organisation;
• Standard items of Governance are covered in every meeting
and a review of Board effectiveness is conducted using the
QCA guidelines; and
• The Board also maintains a cadence to review strategic
items ranging from organisational development and the risk
register, to regional growth and technology evaluations.
Strategy development:
• A formal, structured review of the strategy is conducted once a
year. The Board and members of the Senior Leadership Team
review all drivers that might affect the opportunities and risks
for the Group and thereby identify any need to change either
the strategy or the execution plan; and
• The broader environment is continuously being monitored
and the culture is in place to respond rapidly if a new
opportunity or threat is spotted.
Key Board
decisions
Board and Committee activities are organised throughout the year to
address the matters reserved for the Board. An overview of the Board’s
principal decisions during the year; including how the Board has taken
into account the factors set out in Section 172 of the Companies Act
2006 (“the Act”), is set out below.
Decision
Actions taken
Key stakeholder groups considered
Dealing with the
Covid pandemic,
and semiconductor
supply chain
issues.
• Regularly reviewed the
• The safety of our workforce
challenges presented by
the supply chain shortages,
Covid pandemic and related
government announcements.
• Detailed considerations as to how
we could continue to operate
safely on sites and in offices, and
travel and accommodation issues
for our workers.
• Initiated actions to obtain
government support in the form
of furlough monies, further
CBILS schemes, complemented
with bank support activities
detailed later in this report, to
provide the Group with sufficient
liquidity and facility headroom
to withstand potential downside
trading scenarios.
• Initiated product and process
development initiatives to help
improve total gross profit.
remained a primary driver during
this period, together with their
and the Group’s financial security.
• The Board recognised the trade-
offs of managing the financial
security of the Group, servicing
customers and the impact of
furloughing staff.
• The Board ensured clear
communication took place,
through safe platforms to all
employees regularly.
• The Board recognised the
importance of engaging wider
stakeholders. The Group engaged
with its bankers, its supply chain,
key customers, and the local
business community to ensure
support and agreement for key
actions.
• The Board is conscious that
the actions of the Group during
the pandemic period will have
an ongoing impact on future
stakeholder relationships.
• We continued to assist with
residual demand for PPE items at
the beginning of the year.
34
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 35
OUR STAKEHOLDERS continued
OUR STAKEHOLDERS continued
Decision
Actions taken
Key stakeholder groups considered
Decision
Actions taken
Key stakeholder groups considered
Funding and
cash headroom
adequacy,
balance sheet
strengthening,
both for growth
and provision of a
market recovery
buffer.
Setting the annual
Group budget
and subsequent
forecast
modelling within
the pandemic
and disrupted
supply chain
environment.
• December 2021, secured a
£3.0 million equity fund raise,
primarily through the existing
shareholder base.
• Banking covenant waivers agreed
until March 2023.
• Loan capital repayments
deferred, as described herein.
• Reviewed and approved Group
budgets for FY22/23 and profit
and cash flow forecasts for
the 24 months commencing
1st October 2021.
• Review and scenario modelling
of future trading to support
liquidity, banking compliance and
the going concern assessments.
• The Board decided that given the
uncertainty on timing of recovery
from the semiconductor supply
crisis that it was in the best
interests of all stakeholders to
strengthen the balance sheet to
protect the business and support
ongoing strategic activity.
• In reviewing the budget and
subsequent forecasts, the Board
considered the impact on all
stakeholders.
• Setting the budget identified
key areas of focus for the
Group, providing development
opportunities for employees,
some of which have already
been implemented.
• The budgeting process provided
key information to take decisions
such as manning levels, the design
of future value project streams
and capital expenditure.
• In setting the budget the
Board also gave consideration
to customers and identified
opportunities to develop
customer relationships and
improve service delivery
and efficiency.
• Consideration was given to
suppliers and ensuring their
payments are made on a
timely basis.
Restructuring
including the
redundancy of
certain team
members.
• The ongoing impact of the
semiconductor crisis, end of
furlough scheme and uncertainty
on timing of recovery meant
the UK and Swedish businesses
had to undertake further
redundancies at the end of
the year.
• Various roles were evaluated and
actioned for redundancy.
• Productivity and cross area skill
training is also being used.
• The Board considered the impact
on the wider workforce and in
particular those directly impacted
by the restructure.
• Whilst the actions to improve
the Group cost structure were
considered necessary, the
Board recognises the negative
impact the process had on
employees. The Board ensured
that the redundancy process
was completed fairly and
transparently, with experienced
human resources expertise
supporting the process.
Employees impacted in the
process were treated ethically,
respectfully and fairly.
Directors’ Section 172 statement
• the likely consequences of any decisions
The Board of Directors consider that they,
both individually and collectively, have
acted in a way that would be most likely
to promote the success of the Company
for the benefits of its members as a
whole (having regard to the stakeholders
and matters set out in Section 172(1)
(a-f) of the Act) in the decisions they
have taken during the year ended
30 September 2021.
In making this statement the Directors
considered the longer-term needs of
stakeholders and the environment and
have taken into account the following:-
in the long term;
• the interest of the Company’s
employees;
• the need to foster the Company’s
business relationships with suppliers,
customers and others;
• the impact of the Company’s
operations on the community and the
environment;
• the desirability of the Company
maintaining a reputation for high
standards of business conduct; and
• the need to act fairly as between
members of the Company.
36
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 37
FINANCIAL REVIEW
Maintaining business fitness
and improving resilience against
challenging market fundamentals
“
Strong H1 21 performance in EBITDA and cash, despite only a partial
industry volume recovery. This validated the underlying structural
improvements made to the Group over the past 2 years.
Semiconductor supply disruption in H2 21 called for further resilience
actions as volume drops of up to 60% were experienced. Further cost
and funding actions restored headroom position to be in excess of
£5.5 million in December 2021, including £3 million equity raise*.
“
KAMRAN MUNIR
Chief Financial Officer
Trading £000
Revenue
Gross Profit
Gross Margin %
EBITDA
Profit/(loss) after taxation
Operating Cashflow
Debt and Cash Headroom £m
Net Debt
Cash Headroom
Loans and Borrowings
H1
H2
FY21
FY20
13,712
3,909
28.5%
1,181
10
934
H1
1.9
6.1
9,719
2,419
24.9%
(87)
23,431
21,517
6,328
27.0%
1,094
5,881
27.3%
1,123
(1,094)
(1,084)
(1,723)
60
994
1,476
H2
2.7
2.9*
FY21
2.7
2.9*
(4.0)
FY20
1.9
5.3
(4.9)
* 15 December 2021, £3.0 million gross equity placing completed,
38
Autins Group PLC Annual Report 2021
Revenue improvement of 9%
year over year, despite significant
automotive sector supply
disruption. Positive EBITDA of
£1.1 million for FY21. Significant
growth in non-automotive and
European markets. CBILS debt
repayment of £0.75 million made
from operating cash inflow of
£1.0 million. Working capital
investment in buffer stocks to
offset supply chain issues. Further
cost restructuring to safeguard
the business post furlough. Bank
support and £3 million equity
placing completed in December
2021 to strengthen liquidity and
restore headroom.
In H1, the Group saw partial recovery in
automotive volumes and strong growth in
European flooring applications. Combined
with prior and continuing operations and
cost structure improvements this yielded
an EBITDA of £1.1 million, a narrowly
positive profit after taxation, and an
operating cash inflow of £1.0 million. With
the Invoice Financing (IF) bank facility
also increasing with sales, cash headroom
improved to £6.1 million. This performance
was very encouraging (with the estimated
UK volume recovery being no better than
75%) and validated the Group’s ability to
make significant returns once volumes
recover nearer to normal levels.
In H2, the semiconductor supply disruption
then caused significant and unexpected
continued monthly revenue reductions; as
measured against detailed communicated
OEM twelve to sixteen week operational
rolling demand schedules. The mid-month
and mid-week reductions could be as high
as 50%, with the lowest revenue points
being July and August (which do also
usually include holiday plant shutdowns).
This was seasonally unusual given that
the H2 demand profile is typically stronger
than H1 given demand from new car
registrations. There has been steady
revenue recovery since the August lows,
and ongoing improvement is expected.
FINANCIAL REVIEW continued
Overall automotive revenues in H2 were
down almost 30% against H1. This drove
EBITDA to become negative in H2, with
lower operating cash flow. Stock buffering
against supply chain disruption and
repayment of the £0.75 million CBILS bullet
loan also impacted cash headroom.
To strengthen the balance sheet, increase
working capital and provide a market
recovery buffer, in December 2021 the
Group completed a £3.0 million equity
placing, largely from existing shareholders,
and also obtained further bank support
in the form of agreed capital payment
deferments and covenant waivers which
are described more fully below.
Revenue
Automotive revenues remained disrupted
throughout FY21. UK and Sweden were the
most impacted, with the disruption causing
volume reductions in excess of 50% at
certain points in H2. UK Tooling revenues
reduced by 76% to £0.3 million (FY20 £1.3
million) as OEM’s also slowed new launch
and development activities. Counter to
this, Germany experienced significant
automotive growth overall from additional
contract volume wins, with the supply
chain disruption being less acute for the
German market until very late in FY21.
Revenues on PPE items in the UK declined
from £1.2 million in FY20 to £0.1 million
in FY21.The PPE revenues should be
considered transient for the FY20 (prior
year) peak pandemic period. This was
partially offset in the UK with revenues
from initial development and launch
volumes demand of non-automotive office
pods and working space solutions. Both
of these markets remain targeted growth
areas for the Group, with sales continuing
to increase in the period since the year
end, associated with favourable customer
product performance feedback.
The most significant revenue growth
for the Group in FY21 was in flooring
applications from Germany, which grew
161% year over year to £4.6 million.
Neptune sales grew 64% to £7.1 million in
FY21 (FY20: £4.3 million), primarily within
automotive end applications.
Autins Group PLC Annual Report 2021 39
FINANCIAL REVIEW continued
Gross margin
Automotive margins were largely held
stable over the year. This was the net result
of a combination of adverse cost push and
volume reduction factors, being offset by
improvements from operational efficiency
actions, improvements in Neptune
processes and manufacturing methods and
the growth of Germany’s non-automotive
flooring applications. This is explained
further below.
UK Automotive margins had a slightly
weaker mix than the prior year, with some
traditionally strong products having come
to end of life cycle with the OEMs. However,
Neptune sales grew as noted above by
64%, and this significantly improved
the overall absorption of manufacturing
fixed costs in our Tamworth facility.
Despite cost push factors mainly relating
to Far East container shipments costs
and scrim materials, other procurement
improvements were made to hold internal
Neptune contribution margins steady.
The net result is an improved end to end
margin on Neptune products, which should
continue to improve further with expected
Neptune volume increases over the longer
term, with some new contract volumes
having already been won.
The gross margins on German flooring
applications are consistent with our
mainstream automotive margins. However,
given that the follow-on costs are primarily
sales commissions with very few additional
operational costs to serve, the net EBITDA
margins from flooring are significantly
additive, which is illustrated further below.
Revenue reduction on PPE items as noted
above reduced overall gross margin. Much
of the FY20 work for face visors was on a
subcontract manufacturing basis having
no materials costs, and face mask revenues
were a mix of sales to both resellers and
end users derived from our patented
Neptune materials. This profile naturally
yielded above average margins. The PPE
impact alone is the equivalent of 1.4%
gross margin reduction for the Group.
With total Group gross margins at 27.0%
for FY21, compared with 28.0% (adjusted
40
Autins Group PLC Annual Report 2021
gross margin) for FY20, the intrinsic
aggregate gross margin across all non
PPE products is an improvement of 0.4%.
As automotive volumes recover towards
normalised levels, this should yield further
improved absorption of facility fixed costs
and the gross margin percentage would be
expected to recover further.
EBITDA and operating profit
FY21 EBITDA was consistent at £1.1 million
(FY20: £1.1 million) after adjusting
for exceptional and non-recurring
costs as noted below. The reported
statutory operating loss was £0.7 million
(FY20: operating loss of £1.3 million),
representing an improvement of
£0.6 million.
Germany sales were £7.6 million
(FY20: £4.6 million) and the associated
EBITDA was £0.9 million (FY20: £0.4 million)
being 12% of sales. This helped to balance
off the EBITDA reductions in UK and
Sweden. Sweden revenues were consistent
with the prior year at £1.6 million
(FY20: £1.6 million) and yielded an EBITDA
of £0.2 million (FY20: £0.3 million). UK
Revenues reduced to £14.3 million
(FY20: £15.4 million) given the automotive
supply disruption, and EBITDA reduced
to £0.0 million (FY20: £0.4 million). These
stated measures exclude the impact of
management recharges into Europe, and
apply Group plc costs entirely against the
UK entities. UK EBITDA and operating
profit also benefitted from £0.1 million
of release from provisions for bad and
doubtful debts, following an extended
focus on debtor collection improvement
over the prior 18 months.
The Directors also note that £0.65 million
(FY20: £1.0 million) of employment costs
were met by income from the government
job retention scheme, in the relevant
publicised support periods in the UK, and
their overseas equivalents in Sweden and
Germany. There were no other financial
support grants during the year (FY20:
£0.1 million). In total, government financial
support received was approximately
£0.45 million lower in FY21 than the
prior year.
The FY20 EBITDA is stated after excluding
items that management considered
to be a result of significant one-off
events, including the restructuring costs
associated with the detailed review of
operations, which followed the new CFO
appointment in January 2020. These
included employee severance costs and
the planned scrapping of inventory to
enable improved floor space utilisation
with the aim of reducing premises costs.
Exceptional costs relating to restructuring
in FY20 were £0.3 million, and exceptional
inventory impairments were £0.2 million.
Management information used in running
the Group is measured with a focus on the
underlying operational performance and,
as such, these items were excluded. There
are no such adjustments or exceptional
costs recorded in FY21.
The Board acknowledge that these are
alternative measures of performance and
are not GAAP (nor are they intended to be)
but are used to help illustrate underlying
business performance and are informative
to users of the accounts.
Exceptional and adjusting items
There were no exceptional costs charged
in FY21. As noted above, in FY20 the
Group incurred an exceptional cost
of sales of £0.16 million relating to
inventory rationalisation, and exceptional
administrative costs of £0.29 million as a
result of a change of Chief Financial Officer.
To be consistent with analysts measure of
the Group’s performance, amortisation of
£0.2 million (FY20: £0.2 million) in relation
to acquired intangible assets recognised
as a result of the Group’s conversion to
IFRS at IPO (having previously been held
as non amortising goodwill) should be
excluded to provide an adjusted operating
profit. Accordingly, the adjusted operating
loss, allowing for exceptional costs and
amortisation, would be £0.5 million
(FY20: £0.6 million).
FINANCIAL REVIEW continued
Joint venture
The Group’s joint venture, Indica
Automotive, is an acoustic foam conversion
business based in Northampton that
supplies components into the Group’s
UK operations (who remain the largest
customer) as well as its own automotive
customer base. The joint venture continues
to leverage the access to low-cost material
and finished component sources provided
by its other parent, Indica Industries PV
based in India.
Indica Automotive’s turnover increased
by 14% to £2.4 million (FY20: £2.1 million).
H1 21 revenues were £1.5 million (H1 20:
£1.5 million), and revenue declined by 40%
in H2 as call offs for existing parts were
reduced, given an equivalent impact from
the semiconductor supply constraints.
Further margin and overhead cost control
actions were taken by management, and
£0.05 million of UK furlough income was
received, helping to generate a profit after
tax of £0.1 million (FY20: £0.1 million).
Sales overheads were increased, as the
sales organisation was expanded for
future growth.
Currency
The Group’s overseas operations and
certain key raw material suppliers require
the Group to trade in currencies other
than Sterling, its base currency. During
the year, operational transactions were
conducted in US Dollar, Swedish Krona and
Euro and the retranslation of the results of
the German and Swedish operations were
affected by currency fluctuations. The key
raw materials for Neptune production
are currently imported from South Korea
with transactions conducted in US Dollars.
The Group has taken steps to mitigate this
risk by establishing alternative sources
for non-patented product which could
then also be transacted in alternative
currencies. The Group also has Euro based
purchases for materials and production,
including equipment. As Euro sales are
expected to increase from our German
business, this would allow us to manage
relative balances in British Pounds, Euros
and US Dollars.
Autins Group PLC Annual Report 2021 41
FINANCIAL REVIEW continued
The Group continues to benefit from
natural hedging, arising from its structure
and trading balances, which means that
the Group’s result in both FY20 and FY21
has only been impacted in a limited way as
a result of currency translations.
The Group held no forward currency
contracting arrangements at either year-
end. Transactions of a speculative nature
are, and will continue to be, prohibited.
As Neptune grows management will
continue to monitor the Group’s US Dollar
exposure and its impact on the Group’s
results. Where the frequency and quantum
of purchases can support active currency
management, we may implement a formal
hedging strategy.
Net finance expense
The finance expense remained consistent
at £0.5 million (FY20: £0.5 million), and
under IFRS 16 includes £0.3 million of
financing charges derived primarily from
property rental expenses. Bank interest at
£0.2 million (FY20: £0.2 million) is derived
almost entirely from the CBILS and MEIF
term loans. The Group’s MEIF term loan
is at a coupon rate of 7.5% and remained
fully drawn during FY21, with no capital
repayments having been made under
agreed extension terms. The CBILS short
term bullet loan of £0.75 million received
in July 2020, at a net zero cash interest cost
for the first 12-month period, was repaid
to agreed terms in August 2021. The CBILS
6-year term loan of £2.0 million remained
outstanding at 30 September 2021 (FY20:
£2.0 million), and attracts an interest rate
of 3.99% above base rate.
The primary UK invoice financing facility
remained undrawn throughout FY21,
in line with our strategy to optimise
working capital, with an extended focus
on debtor collections yet maintaining a
timely payment cycle to trade creditors.
Inventory continued to be rationalised
where possible; however, an investment
of up to £0.5 million was made in strategic
buffer stocks for flooring business growth
and protection against Far East supply
disruption. Modest short-term overdrafts
only prevailed within our Sweden
42
Autins Group PLC Annual Report 2021
operations and were reduced over the
year to end FY21 at £0.02 million (FY20:
£0.15 million). Our key Far East suppliers
continued to extend the Group’s direct
open credit throughout FY21, and so the
bank trade finance facility was not utilised.
Car and equipment finance leases further
reduced in FY21 as some agreements
completed during the year, with no
renewals, which reduced interest costs to
£0.02 million (FY20: £0.03 million).
An analysis of the net finance expense is
presented in note 8 on page 112.
Taxation
The effective tax rate in the year was
below that expected based on current
UK corporation tax levels. Given the
quantum of losses compared to expected
profitability in the next two years, the
Group has not recognised the majority of
current year losses as a deferred tax asset.
The balance sheet asset has been reviewed
and is considered to be supportable based
on the Group’s expected trading.
The Group’s technical R&D and
applications teams have, as in prior
years, continued to enhance materials
applications, improve processes and
develop new products. The pandemic and
semiconductor supply chain disruption
to revenues has meant that significant
net losses continue to remain available.
Accordingly, the Group strategy remains to
utilise the losses to obtain actual R&D tax
credit cash refunds to maximise liquidity.
An R&D tax credit claim will be submitted
for FY21 in the usual course. R&D claims
for the years ended September 2019 and
September 2020 were submitted in FY21
as shown per note 9 in the accounts with
repayment having subsequently been
received. R&D activities continue and
this, together with recognition and use of
available brought forward losses when
profitability increases, will mean that the
effective tax rate will remain below the UK
statutory level for the short to medium
term with an unrecognised deferred tax
asset of £0.95 million in the UK (FY20:
£0.77 million).
The Group’s German subsidiary is
expected to fully utilise its remaining
tax losses in FY21 which will result in a
degree of tax at a higher rate on future
profits in Germany whilst brought forward
taxable losses available in Sweden will,
in the short term, at least partially offset
expected trading profits. The Group has a
further £0.3 million (FY20: £0.03 million)
unrecognised tax asset in respect of
Swedish tax losses.
Earnings per share
Loss per share was 2.74 pence (FY20: Loss
per share 4.35 pence) reflecting the loss
in the year. The weighted average number
of shares was 39,600,984 in the year
(FY20: 39,600,984). Calculations of earnings
per share and the potential dilution arising
from the senior management share option
scheme in future periods are presented in
note 10 on page 114.
Dividends
The Board are not proposing a final
dividend for the current year (FY20:
£nil) and no interim dividend was paid
(FY20: £nil).
Net debt and working capital
The Group ended the year with net
debt of £2.7 million (FY20: £1.9 million)
excluding the IFRS 16 calculated lease
liabilities of £5.6 million as disclosed in the
reconciliation of movements in cash and
financing liabilities on page 95.
No additional borrowing facilities were
obtained or utilised during the year. In
the prior year the Group secured a £1.5
million five-year term loan from MEIF,
and £2.75m of UK CBILS loan funding.
Of the CBILS funding £0.75 million was
a one-year bullet loan and was repaid to
terms in August, with the balance of £2.0
million outstanding as at the year end. Hire
Purchase liabilities were reduced to £0.1
million. Total debt was reduced by £0.9
million.
The Group has £0.2 million (FY20:
£0.3 million) of hire purchase agreements
in the UK. There were no new hire purchase
agreements in the year and the short-term
trade import facility was not utilised (FY20:
£0.1 million was utilised).
FINANCIAL REVIEW continued
The Group has continued with working
capital optimisation in the year, which
has been partially described above.
Trade debtors improved in the year with
a reduction of overdue balances from
additional focus and applied resource.
There was a release from the bad debt
provision in the year of £0.1 million (FY20:
£0.0 million). Some of the prior year’s
provision has been retained against
historic overdue invoices which the Group
continues to steadily resolve.
Trade creditors reduced in line with
activity levels in the year, with payments
being made to terms, usually on a weekly
cycle. The net movement of debtors and
creditors was a £0.2 million inflow. Stocks
were increased by £0.5 million, primarily
owing to additional buffers being held, as
described earlier.
Going concern
The Board have concluded, on the basis of
current and forecast trading and related
expected cash flows and available sources
of finance, that it remains appropriate to
prepare these financial statements on the
basis of a going concern.
The Group completed an equity placing
with gross proceeds of £3.0 million
(£2.8 million net) in December 2021,
primarily with the participation and
support of its existing shareholders. In
addition, dual lender support has been
agreed in the form of covenant waivers
with testing to resume at the end of
March 2023. In light of the external
trading environment the bank has also
indicated a willingness to revise the
covenants to better reflect the Group’s
forecasted trading levels once there is
improved visibility over the resolution
of the semiconductor disruption, which
is anticipated to occur in advance of the
next covenant test date in March 2023.
The waivers are coupled with a minimum
6-month capital deferment holiday on
both the outstanding CBILS and MEIF
term loans. As at 14 January 2022, shortly
before the reporting date, the prevailing
cash headroom for the Group is in excess
of £5.0 million (FY20: £5.6 million).
Autins Group PLC Annual Report 2021 43
FINANCIAL REVIEW continued
This includes undrawn balances on the
UK invoice financing facility which has
in excess of £2.0 million available, with
its operational limit currently agreed
at £3.5 million against relevant trade
receivables. Despite the Covid trading
backdrop, the Group reported positive
operating cash flows of £0.9 million, and
£0.75 million of CBILS loans were repaid
during the year.
Whilst the operating cash flows benefit
from a combination of improved working
capital and cost management, they are
also impacted by significant decreases
in revenues as a result of the pandemic
and semiconductor disruption. The Group
has also made further operational and
overhead cost improvements, including
significant carefully considered headcount
reductions which improve the cost
structure by more than £0.7 million per
annum, with continuing programmes
in place to make additional cost and
profit improvements.
In undertaking their assessment of
the future prospects for the Group,
the Directors have prepared trading
and cash flow forecasts for the period
to 31 January 2023 for the purpose of
assessing the going concern basis of
preparation, with further forecasts going
out to 30 September 2027. These take into
consideration the current and expected
future impacts of the pandemic and
semiconductor supply recovery timelines,
diversification and development of
customer product ranges and also have
regard to the committed business and
enquiry levels from existing customers.
The Directors have also considered the
impact of current and future demand
levels for new vehicles, the migration to
EV’s and publicly available forward looking
market information regarding market sizes
and dynamics. These forecasts have been
compared, together with considering a
range of material but plausible downside
sensitivities, to the available bank facilities
and the related covenant requirements.
Notwithstanding the agreed deferments,
the loan repayments and interest costs
are expected to be adequately covered
by operating cash generation over the
period and the Group has significant
liquidity headroom within its facilities to
accommodate all reasonably foreseeable
cash flow requirements in the event
of changes to its demand as a result of
prevailing supply chain conditions, or
other economic factors, with further
flexibility also available to favourably
manage the cost base in respect of
operating costs, should the need arise, or
flex other payment structures to increase
cash headroom.
The most sensitive factor impacting
the forecast period, and the continued
availability of the current facilities, is
ensuring that liquidity remains reliably
positive for the Group, albeit the Board
has set a minimum target of £0.5 million.
In the next financial year, achievement of
this minimum required UK (and group)
liquidity target, without significant
further unplanned cost or efficiency
improvements, is predicated on minimum
UK revenue levels of £9.4 million in
FY22 and £14.4 million in FY23. These
revenue levels compare with UK revenues
of £14.3 million in FY21, £16.8 million
in FY20 and £21.3 million in FY19. New
business continues to be won and,
accordingly, the Board are confident that
the sales and liquidity targets will be
met, especially having regard to further
additional mitigating actions which remain
available to the Group.
The Board continues to review the Group’s
banking and funding arrangements with
a view to ensuring that they remain
appropriate for the planned growth within
mainland Europe and to allow for the more
volatile demand pattern in the current
economic environment.
FINANCIAL REVIEW continued
Research and development costs of
£0.03 million (FY20: £0.13 million) have
been capitalised in the period as the
Board considers they meet the Group’s
stated policy for recognition of internally
generated assets. The costs are focused
on a range of projects designed to further
enhance the Group’s current materials and
product ranges and improve production
capabilities to derive volume or cost
reduction benefits.
Financial risk management
Details of our financial risk management
policies are disclosed in note 3 on
pages 106–108.
KAMRAN MUNIR
Chief Financial Officer
24 January 2022
Acquisitions, goodwill and
intangible assets
There were no acquisitions made in the
year, nor any adjustment to fair values
attributed to previous transactions.
The Board, acknowledging that this is a
further year of reported losses and that
the Group’s current market capitalisation
is currently less than the Group’s net
assets, has reviewed the carrying value
of goodwill and other intangible assets
held at 30 September 2021 (both existing
and generated in the year) by reference
to discounted cash flow forecasts for
separately identifiable cash generating
units. These forecasts are based on
Board approved budgets, and extended
forecasts where appropriate considering
an assessment of likely conversion from
pipeline to revenue.
Having considered the assumptions,
headroom and a range of reasonably
foreseeable sensitivities indicated by
these assessments the Board are able to
conclude that the carrying values are fully
recoverable.
Capital expenditure
Additions to tangible fixed assets were
£0.4 million (FY20: £0.2 million) in the
year with no significant single items
acquired. The Group continues to benefit
from investment in equipment in recent
years and therefore has capacity to
address current demand levels. Planning
for additional investments designed
to improve operational performance
is ongoing and the Board expects
expenditure to be incurred on an ongoing
basis in FY22 in support of further
operational gains.
44
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 45
KEY PERFORMANCE INDICATORS (‘KPIS’)
Lost Time Injury
Frequency Rate
(‘LTIFR’)
KPI Definition
LTIFR is calculated as the number of lost
time injuries leading to more than one
day off work, divided by one million and
multiplied by the number of hours worked.
Performance
2021 0.0
2020 0.0
2019 0.0
2018 2.0%
2017 8.1%
(One incident would represent 2.0 for FY21)
Comment
No incidents in the year that have resulted
in lost time (being more than one day away
from work as a result of an incident at
work).
The business has had no lost time
incidents since October 2017. Given
this consistent good performance,
management focus daily on minimising
any minor incident and since 2020 have
focused on Covid safe working practices
and increasing awareness of mental stress
in the workplace.
Gross profit
growth (£)
KPI Definition
Measure is calculated as the change in
gross profit from continuing operations in
the current year compared with prior year.
The effect of any acquisitions in the current
or prior year is adjusted. The gross profit in
FY20 is presented on an adjusted basis.
Performance
2021
2020
2019
2018
2017
7.6%
(12.6%)
2.8%
(19.7%)
30.4%
(Target: CAGR 15–20% over 3–5 years)
Comment
Despite the negative impact of
semiconductor shortages in the
automotive industry, Autins managed to
deliver modest improvement in gross profit
due to modest sales growth and strong
operational cost controls.
Non-UK revenue
as a proportion of
consolidated sales (%)
KPI Definition
Measure is calculated as the value of
external sales for German and Swedish
operations as a proportion of total
revenues.
KEY PERFORMANCE INDICATORS (‘KPIS’) continued
Organic revenue
growth (%)
KPI Definition
Organic revenue growth measures the
change in revenue in the current year
compared with the prior year from
continuing operations.
The effects of any acquisitions in the
current or prior year are adjusted.
39%
Performance
Performance
2021
2020
2019
2018
25%
19%
17.2%
2017
12.4%
(Target: 35% over 3–5 years)
Comment
Sales in Europe grew +£3.1 million to
£9.2 million, driven by German sales
expansion of +69% to £7.6 million. The
regional mix was somewhat exaggerated
by UK automotive sales decline due to the
semiconductor shortages.
2021
2020
2019
2018
2017
9%
(20%)
(8.1%)
10.9%
26.7%
(Target: CAGR 15–20% over 3–5 years)
Comment
Despite the negative impact of
semiconductor shortages in the
automotive industry, Autins still managed
to deliver revenue growth of 9% due to
sales into new auto customers, commercial
vehicles, flooring and office pods.
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KEY PERFORMANCE INDICATORS (‘KPIS’) continued
PRINCIPAL RISKS AND UNCERTAINTIES
EPS growth (%)
KPI Definition
EPS growth measures the change in basic
earnings per share in the current year
compared to that of the prior year.
Performance
2021
2020
2019
2018
2017
37.0%
30.4%
(1.8%)
10.9%
26.7%
(Target: CAGR 15% over 5 years)
Comment
Improvement reflects reduced losses made
in the year, helped slightly by modest sales
growth, but primarily by strong operational
and overhead cost controls.
New product and
customer sales as a %
of Group (%)
KPI Definition
New product and customer sales are
measured as the combined revenue
generated from products (primarily
Neptune) and customers secured by the
Group in the current and previous three
years, as a percentage of total revenue
from continuing operations.
Performance
2021
2020
2019
2018
2017
23.4%
20.2%
21.4%
18.3%
12.7%
(Target: over 10%)
Comment
The commercial team continues to
win new business with new product.
This is a combination of Neptune sales
into automotive, commercial trucks
and office pods customers plus new
flooring customers.
Risk Management
The Autins Board considers risk
management a strategic imperative that
will help to ensure delivery of our long
term goals. Whilst risk management is a
daily management process for control of
Health and Safety, quality and customer
service, the company also undertakes
a formal review twice a year to identify
risks and opportunities for delivery of the
strategic objectives.
Approach to risk management
Every function and country reviews their
risks and confirm actions to mitigate the
identified risks. The Leadership team
then review all these risks and creates
a prioritised risk register across the
Group, based on the potential impact
and likelihood of the risk happening,
which is monitored and managed on a
regular frequency in the Leadership Team
meetings. Finally the Board formally
reviews the Risk Register ahead of half
and full year results to ensure that a
balanced and appropriate attention has
been given to the safety of our employees
and products, our reputation, or risks
that could lead to breaches of laws
and regulations or endanger the future
existence of the Group
Risk Management Process
The risk management process is set out
in the Group Risk Register Guidance
Documentation. Risk registers are created
each functional area in each country and
subsequently one for the Group
• Identify the key risks
• Describe each risk and how it could affect
the business
• Score the Likelihood and Impact
(financial, reputation etc.) to give a
severity rating
• Prioritise the risks and identify which
ones will receive the highest attention
• Ascribe an owner of the risk to oversee
the mitigation plan and execution
• Monitor progress on each action by date
and an overall status
Identify Risks
Assess Gross Risk
Quantify Net Risk
Identify Existing Mitigtion
Identify Any Further
Action Required
Monitor And Control
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PRINCIPAL RISKS AND UNCERTAINTIES continued
PRINCIPAL RISKS AND UNCERTAINTIES continued
Risk
Description and potential impact
Mitigation
Risk
Description and potential impact
Mitigation
The Covid
pandemic, and
associated
semiconductor
supply
shortages
Failing to
successfully
implement
our growth
strategies
Along with many other businesses,
the pandemic and supply chain
disruption has had far reaching
impacts on the business and,
where relevant to previously
reported risks, the responses are
incorporated above.
The future evolution of the
pandemic, and associated
Government responses, remains
a key focus for the management
team to ensure the impact of
further Covid waves on our supply
chain, customer demand and our
people is monitored and timely,
appropriate action is taken.
Our future success requires an
effective implementation of
the growth and diversification
strategies developed and refined
in recent years. This is essentially
to increase market share with
our USP’s and Neptune product,
across all automotive applications
and European markets. In addition
to widening applications of
Neptune into non-automotive
areas.
Failure to implement our
strategies may adversely affect
our reputation and prospects,
whilst the execution of our
strategies could place strain on
our managerial, operational and
financial reserves.
The Covid trading backdrop adds
additional uncertainties.
Continue applying all current Covid
policies, with real time discussions
ongoing with our key customers
and suppliers. Obtain stakeholder
support to safeguard against
disruption.
Our employee contracts allow us to
flex the hours worked with reduced
pay if demand patterns change.
Strong health and safety processes
prevail with respect to Covid
control and mitigation throughout
our facilities.
We have clear functional leadership
within the Group and through
targeted recruitment reinforced
the leadership team in the year.
Management information, teams
and interactions are designed to
align management focus in support
of our strategic aims.
Our values have been deployed
across all layers of the organisation
to help create alignment from all
staff around our strategic aims.
Executive and leadership team
key KPIs and policy deployment
are cascaded throughout the
organisation creating direct
alignment of goals and to
allow identification of under-
performance and allow actions
to be taken to address and
improve results.
Additional cost and cash
management actions may be
required to offset any sales
deviations.
Maximise any government Covid
support opportunities available
to us, including the job retention
scheme and CBILS loans.
High
Dependence
on automotive
sector and
market cycles.
The Group’s revenues are
primarily derived from the
automotive sector.
Demand for passenger cars could
be materially affected by changes
in government policy, including
tax regimes, environmental
standards and incentives.
The continued and expected
growth in alternative fuel and
electric vehicles may change the
type of NVH solution required
to meet new regulatory and
customer standards arising from
changes to vehicle acoustic
and thermal challenges (from
moving to alternative fuels and
hybrid vehicles).
We remain committed to diversify
and grow the business in terms
of customers, geographies and
applications, as well as leverage
our vertical integration into
materials to reduce the current
reliance on a limited section of the
European automotive sector.
We believe that there are adjacent
sectors to which our knowledge,
materials and process capability
are transferable and have started
to explore those sectors.
Our R&D and operational teams
continue to work on improving
our processes, materials and
applications to address the
changing demands both within
automotive and target growth
sectors.
We have demonstrated our ability
to diversify with our sustained
automotive market share growth,
acoustic flooring in Europe, and
building and industrial applications
to secure new revenues. The
Group has also had success in new
flooring products in FY21.
We continue to develop knowledge
and seek additional approvals
for Neptune, our class leading
automotive material, to facilitate
further growth in both automotive
and non-automotive markets.
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PRINCIPAL RISKS AND UNCERTAINTIES continued
PRINCIPAL RISKS AND UNCERTAINTIES continued
Risk
Description and potential impact
Mitigation
Risk
Description and potential impact
Mitigation
Dependence on
key customers
More than half of the Group’s
revenues continue to be derived
from one customer. In addition,
both European sites also have high
customer sales concentration.
The Group’s income and individual
site’s profitability could be
materially adversely affected by
changes to our relationship with
these key customers, including
a decision to diversify or change
how, or from whom, they source
the components that we currently
provide, an inability to agree on
mutually acceptable pricing or a
significant dispute with the Group.
Should the commercial
relationship with one of our
key customers terminate for
any reason, or if one of these
customers significantly reduces
its current or forecast business
with us and we are unable to
enter similar relationships with
other customers on a timely basis,
or at all, our business could be
materially adversely affected.
The target addressable market
within our specialist area of
automotive NVH is significant and
therefore provides huge potential
opportunity for diversification
and market share gain with other
European OEMs.
Management continues to be
focused on strengthening customer
relationships, and, for our key
customers, we ensure that multiple
contact points are maintained.
Key Customer Account Plans
that outline our strategic
development activities have
been deployed and are routinely
reviewed by management. These
plans also document roles and
responsibilities of all Group
functions in their support of
customer relationships.
We have targeted large Tier One
suppliers whose core competency
is not NVH in order to offer
specialist NVH support. This
allows us to leverage the technical
acceptance for Neptune held with
all strategic OEM customers.
Our sales structure, performance
measurement and incentives are
aligned and linked to achievement
of diversification of our automotive
customer base in the UK and
Europe, both directly with OEMs
and via their tiers.
We are also expanding our non-
automotive revenues in flooring
and office pods.
Loan servicing
and covenant
compliance,
finance and
working capital
management
The Group has a primary UK bank
with secondary funders in the UK
and Europe. The current structure
includes CBILS long-term loans
with HSBC, and a long term MEIF
loan with prevailing covenants.
Working capital funding is
primarily provided by a flexible
invoice financing (IF) facility.
Material short-term demand
fluctuations (such as that
experienced in the pandemic
trading environment in both
FY20 and FY21) would have an
immediate impact on the IF facility
headroom.
It is also likely that this headroom
volatility would be magnified by
short- term inventory fluctuations
within the supply chain and an
unwind of trade payables from
lower demand.
Retention
of key staff
in business-
critical roles
As an SME, the Group inevitably
has certain roles that are business
critical and a higher level of
reliance on certain individuals
for key external relationships
and growth.
The automotive sector had
undergone a period of sustained
growth, especially within the UK,
which has reduced the availability
of certain skills and experienced
personnel.
Risk is elevated with greater key
staff reliance after having made
recent redundancies.
Our annual budgeting and in-year
reforecasting processes model the
effect of certain contingencies and
their effect on working capital.
The equity raise completed in
December 2021 has provided the
Group with additional financial
headroom.
Short-term borrowings have
been reduced and the term loans
provide greater surety in a period
of variable market demand. The
IF facility is flexible to manage
working capital fluctuations.
Stocks and debtors combined are
more tightly managed than before,
and the facility was undrawn
during FY21.
Long-term asset backed finance
products are used for capital
investments.
Our supply chain management
and relationships have been tested
over the pandemic period. We have
been able to achieve co-operative
favourable outcomes to manage
stock fluctuations, ensure supply
continuity, and agree flexible
payment structures that reduced
financial risk.
Management conduct regular
reviews to discuss key staff and
development plans as well as
ensuring that our reward and
remuneration packages remain
competitive against benchmark
levels in the region.
We have continued to progress
staff development to ensure staff
skills remain relevant and reviewed
appropriate succession planning.
We support apprenticeships
and internal progression, and
support those seeking professional
qualifications where appropriate.
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PRINCIPAL RISKS AND UNCERTAINTIES continued
PRINCIPAL RISKS AND UNCERTAINTIES continued
Risk
Description and potential impact
Mitigation
Risk
Description and potential impact
Mitigation
A collegiate, motivating and
dynamic workplace culture
provides a good environment for
staff retention. Our staff survey
feedback remains positive and has
improved over the 2 last years.
Alternative suppliers have been
secured for all non-patented
materials within Neptune to allow
risk mitigation.
The Group has proactively sought
to reinforce the relationship
at senior levels with IKSung
and discussed potential for
collaboration on future projects
that would enhance the existing
trading arrangements.
The licensing agreement
conveys the right to source the
proprietary fibre directly from the
manufacturer (a large 3rd party
material producer) in the event
of IKSung being unable to do so.
Alternative emergency supply
sources have been identified.
Research & Product Development
(‘R&PD’) projects have been
launched with a specific aim of
improving the existing material
and to explore new material
compositions that would reduce
this reliance whilst retaining
(or enhancing) the competitive
advantage of Neptune. We have
collaborative relationships with
other Neptune users.
Investments made during
the extended installation and
commissioning phase included
automated process control and
diagnostic systems not employed
by IKSung that allow for more
effective identification and
resolution of faults.
Dependence
on relationship
with IKSung,
and supply
interruption
The licensor of the intellectual
property rights related to
Neptune, IKSung, are the supplier
of patented and non- patented
ingredients used in manufacture
of the patented materials.
There is therefore risk of a
potentially significant adverse
impact on our ability to serve
customers were this relationship
to deteriorate or breakdown,
or supply was interrupted for
other reasons.
Major failure of
Neptune line
The Group’s Neptune production
line is the only such facility
in Europe.
An extended breakdown could
affect our ability to maintain
continuity of supply to existing
customers which could in turn
affect the rate of enquiry growth
and conversion.
In addition, the Group received
and maintains a critical spares
package for the line and has a
number of specialist engineers
who have received tailored
maintenance training with regards
the line. The Group has a schedule
of preventative maintenance and
repairs in addition to the extensive
clean down and inspection
completed at the end of each
production run.
The Group also has an ongoing
technical support agreement with
IKSung for major machine failures
and a back-to-back agreement is
held which would allow material
to be imported to support
demand. We have also engaged
industry experts who can advise
offset guidance.
Our specialist R&D technicians
have focused projects designed
to improve both Neptune and our
other existing materials and to
explore new materials applications.
We continue to file our own
applications based patents, such as
encapsulation.
We have also improved our
own manufacturing processes
to improve Neptune’s
competitiveness. Technical
feedback in new customer
applications also remains strong
against other tested materials.
Risk of
competing
materials to
Neptune
The commercialisation or
competitiveness of Neptune
could be impeded by
technological advances in existing
or potential substitute materials
which could cause a reduction
in demand.
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PRINCIPAL RISKS AND UNCERTAINTIES continued
PRINCIPAL RISKS AND UNCERTAINTIES continued
Risk
Description and potential impact
Mitigation
Risk
Description and potential impact
Mitigation
The impact
of the EU
referendum
(Brexit)
We experienced only some
transitory logistics and temporary
transport cost challenges in
the first few months following
transition.
Residual risks include the
additional transit time needed
for customs and cross border
procedures, and an overall
increase in the cost of freight to
and from the EU.
Labour availability issues remain
relevant to our business as we
have a significant proportion of
European workers. Some workers
did leave to return to the EU.
The location, design and
manufacturing capacity of all
our operational facilities are
constructed to meet local market
demands in their territory. We
will continue to invest in further
capacity in Europe as the need
arises.
We have continued to invest in
relationships with supply chain
partners to establish safety stocks,
whilst also developing secondary
local suppliers to negate cross
border trading costs and risks.
The Group seeks to position itself
as an employer of choice whilst
recognising that the market is
competitive and has taken steps
to engage staff in the year to better
understand needs and motivations
and support retention.
Systems master data has been
updated to facilitate automatic
and / or simplified documentation
needed for EU post Brexit trading
compliance, and this is working
effectively.
IT systems,
Software and
Cyber Security
The Group has a range of systems
and software infrastructures upon
which it relies to receive, process
and plan customer orders as well
as manage its supply chain.
Recent trends in automotive
OEM system design and the
Group’s increasing customer
base necessitates an increasing
amount of EDI linkages which add
complexity and increased risk
around integrity of data.
Interruption of access or loss of
these systems could negatively
affect the Group’s ability to
produce, despatch and invoice
customers as well as interrupt the
smooth running of its own supply
chain. The latter could also be
impacted by cyber-security issues,
for example if data transfer or
integrity was impacted.
In line with media reports, we
have also experienced a higher
frequency of general virus and
malware attacks, and we plan to
safeguard against this.
The Group has invested in its IT
infrastructure in order to both
improve operational functionality
and also protect sensitive and
proprietary data from cyber-
attacks. The Group has developed
an IT security training programme
in the year to update staff
understanding of the changing
risks associated with cyber-
security, profiling and phishing
Specialist 3rd party IT support
consultants are employed, with
the use of multi-layer data backup
and storage. Regular updates
for malware, security, and virus
protection are installed. We plan to
increase the scope of our actions
in this area, and transition to more
updated software versions to
increase overall protection.
The Group continues to monitor its
IT requirements and may, in future
periods, invest further in ERP
systems to support diversification,
growth and business efficiency.
Critical business continuity
and disaster recovery plans are
reviewed in conjunction with our
external IT support providers and,
based on testing of these plans,
improvements are developed and
deployed.
Key financial controls, cash
management, and critical assets
are managed with a restricted
list of executives and qualified
/ trained personnel with an
appropriate segregation of duties.
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PRINCIPAL RISKS AND UNCERTAINTIES continued
Risk
Description and potential impact
Mitigation
Currency
and foreign
exchange
A growing proportion of the
Group’s business is carried out
in currencies other than Sterling.
The Group’s financial position
or results of operations may be
impacted to the extent that there
are fluctuations in exchange rates.
The Group maintains banking
facilities in the functional currency
of overseas operations and
continues to seek, where possible,
to buy materials and services
locally to the procuring site so as to
minimise transactional risk.
The Group does not currently, but
may, engage in foreign currency
hedging transactions to mitigate
potential foreign currency
exposure. The Directors cannot
predict the effect of exchange
rate fluctuations upon future
operating results and there can
be no assurance that exchange
rate fluctuations will not have a
material adverse effect on the
business, operating results or
financial condition of the Group.
The Board would consider, for
significant future capital projects,
a hedging strategy to give certainty
at the time of order placement.
Speculative transactions of any
kind remain prohibited.
The Board may implement a
hedging strategy to limit or
mitigate risk when it believes that
the level of transactional risks
are sufficiently significant to have
potential for material impacts on
the Group’s results.
The Strategic Report was approved by the Board on 24 January 2021 and signed by order of
the Board by the Chairman.
ADAM ATTWOOD
Chairman
24 January 2022
GOVERNANCE
Governance
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
IN RESPECT OF THE ANNUAL REPORT AND ACCOUNTS
The Directors are responsible for preparing
the Annual Report and financial statements
in accordance with applicable law and
regulations.
UK Accounting Standards have been
followed, subject to any material
departures disclosed and explained in the
financial statements; and
Company law requires the Directors to
prepare Group and Parent Company
financial statements for each financial
year. As required by the AIM Rules of the
London Stock Exchange, they are required
to prepare the Group financial statements
in accordance with applicable law and
International Accounting Standards
in conformity with the requirements
of the Companies Act 2006 and have
elected to prepare the Parent Company
financial statements in accordance with
UK Accounting Standards and applicable
law (UK Generally Accepted Accounting
Practice), including FRS 101 Reduced
Disclosure Framework. Under company
law the Directors must not approve the
financial statements unless they are
satisfied that they give a true and fair view
of the state of affairs of the Group and
Parent Company and of the profit or loss
of the Group for that period. In preparing
each of the Group and Parent Company
financial statements, the Directors are
required to:
• select suitable accounting policies and
then apply them consistently;
• make judgements and estimates that are
reasonable and prudent;
• for the Group financial statements, state
whether they have been prepared in
accordance with International Accounting
Standards in conformity with the
requirements of the Companies Act 2006;
• for the Parent Company financial
statements, state whether applicable
• prepare the financial statements on
the going concern basis unless it is
inappropriate to presume that the Parent
Company will continue in business.
The Directors are responsible for keeping
adequate accounting records that are
sufficient to show and explain the Parent
Company’s transactions and disclose
with reasonable accuracy at any time
the financial position of the Group and
the Parent Company and enable them to
ensure that its financial statements comply
with the Companies Act 2006. They are
also responsible for taking such steps as
are reasonably open to them to safeguard
the assets of the Group and the Parent
Company and to prevent and detect fraud
and other irregularities.
Website publication
The Directors are responsible for
ensuring that the Annual Report and the
financial statements are made available
on a website. Financial statements are
published on the Company’s website in
accordance with legislation in the United
Kingdom governing the preparation and
dissemination of financial statements,
which may vary from legislation in other
jurisdictions. The maintenance and
integrity of the Company’s website is
the responsibility of the Directors. The
Directors’ responsibility also extends
to the ongoing integrity of the financial
statements contained therein.
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BOARD OF DIRECTORS AND SENIOR MANAGEMENT
BOARD OF DIRECTORS AND SENIOR MANAGEMENT continued
Board Director
Senior Management
Dr Kathryn Beresford
Group R&D Manager
Adam Attwood
Non-Executive Chairman
Henrik Petterson
Operations Manager, Autins AB
Gareth Kaminski-Cook
Chief Executive Officer
Dr Kathy Beresford holds a PhD in
Multichannel Automotive Audio from
the University of Surrey in 2010 and
was awarded a postgraduate award
(with distinction) in Innovative Business
Leadership from the University of Warwick
in 2016. She spent seven years working
in local government in varied roles
conducting educational data analysis,
modelling and interpretation alongside
performance and project management.
Kathy joined the Autins Group in June
2015 to lead research, development and
innovation and to establish the Group’s
technical facilities. In 2020, Kathy took
ownership of the customer projects team
at Autins and now leads both product and
programme management.
Adam joined the Autins’ Board in January
2016 as Non-Executive Chairman. He
has many years experience of working
with growth-focused SMEs. Originally
a corporate solicitor with Norton Rose
Fulbright, he moved into quoted company
advisory and European M&A with
Charterhouse Bank. He progressed to direct
private equity investment with Livingbridge
Equity Partners focusing on investments in
the Midlands region. Adam has a portfolio
of non-executive roles with manufacturing
and branded businesses. Adam chairs the
Group’s Nominations Committee.
Henrik brings 20 years’ experience in the
automotive industry, progressing rapidly
from operator to operational manager for
Schenker Automotive’s direct sequenced
supply to Volvo. Henrik played a leading
role in the creation, management and
development of Autins’ Swedish site, with
a keen eye on cost, agility and automotive
best practice. Since April 2019, Henrik has
been the in-country manager for Autins’
Swedish operations bringing in Group
support to facilitate operational scaling as
required. Henrik has a master’s degree in
Electricity and Signal Technology from the
University of Borås, Sweden.
Gareth joined Autins in October 2018
and has 30 years of international
business experience in market-leading
industrial organisations across several
business sectors, having worked previously
for Low & Bonar, Saint-Gobain, Rexam, BPB
and Danaher. He has a deep understanding
of the manufacture and application of
technical material-based solutions in
relevant industrial sectors including
automotive, flooring and building products.
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BOARD OF DIRECTORS AND SENIOR MANAGEMENT continued
BOARD OF DIRECTORS AND SENIOR MANAGEMENT continued
Matthias Migl
Managing Director, Autins GmbH
Stefan Janzen
Group Applications Manager
Matthias has 25 years’ experience in the
automotive industry including with the
specialist NVH and soft trim component
manufacturer HP Pelzer Group, with a
particular focus on acoustics. Matthias has
been Managing Director of Autins GmbH
since 2013 and holds a degree in Chemical
Engineering from Friedrich – Alexander
University, Erlangen, Germany.
Stefan has more than 20 years’ experience
in automotive and general acoustic
products and solutions starting at HP Pelzer
Group as a Research and Development
Engineer and joined Autins GmbH as
Research and Development Manager in
late 2013. Stefan has a degree in Biology
from Westfälische Wilhelms University in
Münster, Germany and his current role in
Autins is Group Applications Manager.
Shane Kirrane
UK Automotive Sales Manager
Shane has over 20 years’ experience of
sales management, business development
and engineering experience in the
automotive and niche vehicle sector. Shane
started his career in NVH in the early 2000’s
and has a diploma in Acoustics and Noise
Control Engineering. He has a range of
commodity experience, having worked
with a number of key Auto Tier 1’s. Shane
joined Autins with the intention to leverage
his “roots” of NVH, and further foster
already strong Autins relationships, as well
as expand the capabilities and solutions
Autins can offer.
Neil MacDonald
Non-Executive Director
Neil was appointed to the Board in July
2019 as Non-Executive Director and is
Chairman of the Audit and Remuneration
Committees. He is a Chartered Accountant
with more than 30 years of experience in
engineering industries. He is the former
Group Finance Director of AES Engineering
Limited, the international mechanical
seals manufacturer; and previously Group
Finance Director of the international
aerospace company, Firth Rixson. Neil
holds numerous other non-executive and
trustee roles in the private, public and
third sectors.
Kamran Munir
Chief Financial Officer and Company
Secretary
Kamran is a highly experienced strategic
and operational CFO, with a 20–year
background of large corporate and VC
roles in manufacturing, aerospace and
technology companies. Prior to Autins,
Kamran worked for Precision Castparts
Corp, as Finance Director for Special Metals
Limited and more recently European
Finance Director for Timet Division,
driving integration, culture change and
improvements in profitability and value.
Kamran was also European Financial
Controller for SPX Corporation, and CEO
of Spectral Fusion Technologies. On a
voluntary basis, he remains CFO for the
Coventry Refugee & Migrant Centre, as
well as being the founding trustee and
CEO of The Open Hearts, Open Minds
Foundation, which focuses on the relief of
poverty and sickness and the advancement
of education. Kamran holds the ACA
qualification, and is a graduate from the
University of Cambridge (MA).
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BOARD OF DIRECTORS AND SENIOR MANAGEMENT continued
Liz Northwood
UK Human Resources Manager
Liz has over 25 years’ experience of people
management from both the financial
and public sector. She joined Autins
in February 2013 to set up the Human
Resources Department. She now also
leads the training function in the UK.
Liz was involved with the factory move
for Autins back in 2014 and in several
restructures along with recruitment of
many of the current team. Prior to working
for Autins, Liz worked for NatWest bank in
operational and systems improvement.
She has also worked for the Careers
Service within administration and centre
re-organisations.
Dean Trappett
Group Engineering Manager
Joerg Thul
Group QHSE Director
Dean is an experienced engineering
manager with a demonstrated history
of working in first-tier automotive
companies. He has commercial and
customer skills combined with 26 years’
process, continuous improvement &
manufacturing knowledge, leading teams
in manufacturing engineering and new
product / process introduction. Dean
joined Autins in September 2019 to
lead the Group engineering role within
the business.
Joerg is an experienced quality
professional with a background in
engineering and a track record in creating,
managing and developing the quality
function within the automotive supply
chain. Joerg is accomplished in the
introduction, use and maintenance of core
automotive quality and lean tools and has
a degree in Integrated Technologies from
Sheffield University.
64
Autins Group PLC Annual Report 2021
CORPORATE GOVERNANCE STATEMENT for the year ended 30 September 2021
CORPORATE GOVERNANCE STATEMENT for the year ended 30 September 2021 continued
The Group has adopted the QCA Corporate
Governance Code for Small and Mid-Size
Quoted Companies (the ‘QCA Code’) since
September 2018. This is in line with the
Board’s stated aims of seeking to apply,
or work towards, best practice for smaller
quoted companies. The Group remains
subject to the UK City Code on Takeovers
and Mergers.
The statement on Corporate Governance
below should be read in conjunction
with relevant sections of the Company
Overview, Strategic Report and Governance
sections of these Annual Reports and
Accounts which are cross referred from
these pages and the Group’s website –
www.autins.com.
QCA Principle 1: Establish a strategy
and business model which promote
long-term value for shareholders
An overview of the Group’s business
model and strategy is set out on pages
21–23 of this report.
Leadership and day-to-day management
of the Group is the responsibility of the
Chief Executive. The executive directors,
in conjunction with the leadership team
(details of whom are on pages 60–65)
formulate, review and recommend the
Group’s strategy for Board approval as
part of the annual planning cycle. The
leadership team will then take ownership
of specific policy deployment plans that
are designed to implement and promote
the approved strategy in addition to
delivery of annual financial plans.
The Group’s business model has been
designed to deliver sustainable, long term,
profitable growth. As a partner of choice
for the automotive industry, we generate
growth by providing differentiated acoustic
and thermal products with a clear benefit
to the customer. We do this through a
high-performing, values-led organisation
focused on delivering our strategic goals.
QCA Principle 2: Seek to understand
and meet shareholders needs and
expectations
The Group seeks regular dialogue with
both existing and potential shareholders
in order to confirm that our wider investor
66
Autins Group PLC Annual Report 2021
relations plan has allowed investors to
clearly understand the strategy, business
model and performance.
The executive directors meet regularly
with investors and analysts at investor
roadshows and by hosting tours of
our facilities in order to facilitate open
communications regarding the Group’s
business performance (both current and
expected future state) and reconfirm the
Board’s understanding of shareholders’
expectations and needs with regards
the Group.
The Board recognises the importance
of the Annual General Meeting (‘AGM’)
and therefore encourages participation
by all investors at the AGM. All Board
members present at the AGM therefore
make themselves available to answer
any questions from shareholders that
may arise. Notice of the AGM is in excess
of 21 clear days and the business of the
meeting is conducted with separate
resolutions, voted on initially by a show
of hands and with the result of the voting
being clearly indicated.
The results of the AGM are subsequently
published on the Company’s corporate
website and are announced through a
regulatory information service. The Board
will also disclose any actions to be taken
as a result of resolutions, for which, votes
against have been received from at least 20
per cent of independent shareholders.
The Group has not appointed a Senior
Independent Director, but considers
annually whether one should be
appointed.
QCA Principle 3: Take into
account wider stakeholder and
social responsibilities and their
implications for long-term success
The Group has adopted the finnCap
Environmental, Social and Governance
(‘ESG’) framework (as recommended
by the QCA) to measure and improve
its ESG policies and procedures. The
Group recognises the need to maintain
effective working relationships across a
range of stakeholder groups including
its employees, customers, suppliers,
shareholders and the wider community
in which it operates – the Group’s
commitment to stakeholder engagement
is set out on pages 32–37. The Group’s
commitment to effective ESG governance
is set out on pages 26–29.
The Board’s primary responsibility is to
promote the success of the Group for
the benefit of its members as a whole,
but the Board recognises its obligation
to balance the Group’s operations and
working methodologies to take account
of, and balance with, the needs of all of
the wider shareholder groups. Where
feedback is received from stakeholders, the
Group endeavours to make appropriate
amendments to working arrangements
and operational plans to address this
feedback whilst remaining consistent with
the Group’s longer-term strategies.
The Group employs a full time
Environmental, Health and Safety
professional who ensures that due account
is taken of any impact on the environment
that its activities may have and seeks to
minimise this impact wherever practical
and possible. The Group remains fully
compliant with Health, Safety and
Environmental legislation relevant to its
activities and performs regular reviews of
its various procedures and systems in order
to maintain and enhance both compliance
and the sharing of best practice.
The Group continues to promote Autins’
Values, a set of six principles designed to
influence the way we work together, drive
performance and inform our response
to stakeholder needs and the Group’s
responsibilities to them. Management
launched a bi-annual Group Employee
Engagement Survey in 2019 to assess the
implementation of these values and to
address, where possible, any concerns
raised and ensure the alignment of
interests between the Group and that
of our employees. The Survey was re-
performed during 2021 with the overall
scoring having improved since 2019.
The results were presented back to the
employees in an open meeting.
QCA Principle 4: Embed effective
risk management, considering
both opportunities and threats,
throughout the organisation
The Audit Committee provides guidance;
having taken feedback from management
and third party advisors, to the Board with
regards the effectiveness of the Group’s
system of Internal Control. The Group has
designed and implemented systems to
manage, limit and control the risk of failure
to achieve business objectives. As with
all systems, the Group’s processes cannot
eliminate all risk completely, but provide
reasonable rather than absolute assurance
against material loss or misstatement.
The Chief Financial Officer leads a
continuous process, with support from
the leadership and finance team, to
identify, evaluate and manage the Group’s
significant risks. The Group’s register of
potentially material or significant risks are
reviewed by the Board twice per annum.
As an SME, the executive directors,
supported by the Group’s leadership
team, are actively involved in the daily
management of all aspects of Group
operations and meet on a regular basis
to discuss:
• Quality, environmental and health &
safety performance.
• Monthly financial and commercial results
of the business compared to forecast.
• Achievement against annual policy
deployment activities that support the
Board’s delivery of the strategic plans.
• Business risks and appropriate control
systems improvements to manage
those risks.
• Progress on performance improvement
projects.
• Steps taken to embed internal control
and risk management further into the
Group’s operations.
On a monthly basis, agreed financial
and non-financial KPIs together with
management accounts are reviewed by
the Board to assess progress against its
Autins Group PLC Annual Report 2021 67
CORPORATE GOVERNANCE STATEMENT for the year ended 30 September 2021 continued
CORPORATE GOVERNANCE STATEMENT for the year ended 30 September 2021 continued
key objectives for the year. The executive
directors’ provide a supporting written
commentary in order to highlight key areas
of performance and address previously
agreed areas of interest. These KPI’s,
management accounts and more detailed
departmental level data are cascaded
via the leadership team throughout the
organisation.
The Board further considers whether any
significant strategic, organisational or
compliance issues have occurred (or are at
risk) to ensure that the Group’s assets are
safeguarded and financial information and
accounting records can be relied upon.
A summary of the principal risks and
uncertainties facing the Group, as well as
mitigating actions, are set out on pages
49–58 of this report.
QCA Principle 5: Maintain the Board
as a well-functioning, balanced
team led by the Chair
Role of the Board
The Company and Group are managed
by a Board of Directors, chaired by Adam
Attwood, who are ultimately responsible
for taking all major strategic decisions and
also addressing any significant operational
matters. Deployment of the Group’s
strategy and management of day to day
decisions is delegated to the executive
directors and the leadership team. The
Board also reviews the Group’s risk profile
and the adequacy of the implemented
systems of internal control that are in
place. The management information
systems continue to be evolved to adapt
to changing data enquiry needs and to
ensure that they are capable of facilitating
informed decisions by the Board to allow
them to properly discharge their duties.
During the Covid pandemic, increased
remote home working was supported by
suitable IT and digital communication
technologies adopted to aid continuous
and efficient communication.
Delegation of responsibilities
The Group maintains a formal schedule
of matters reserved for the Board which
is reviewed at least annually. A schedule
of delegated authorities under which
68
Autins Group PLC Annual Report 2021
management can operate without
reference to the Board exists and was last
reviewed, revised and approved by the
Board in January 2021.
Board composition
Since March 2020, the Board has consisted
of two executive directors, a non-executive
chairman and an independent non-
executive director. All non-executive
directors that served in the year were
considered to be independent of
management by the Board and were free
from any business or other relationship
that could materially interfere with the
exercise of their independent judgement
in accordance with the QCA Code. The
Board considers that it is appropriate
in the short-term to operate with only
two non-executive directors, as this is
consistent with cost mitigation measures
that have been applied to all staffing
across the Group. The Board is committed
to increasing the number of independent
non-executive directors on the Board as
soon as appropriate in the recovery cycle.
The Group considers annually whether a
Senior Independent Director should be
appointed, but has not currently chosen
to do so.
The Board are satisfied that they
have sufficient members and with
an appropriate balance of skills and
experience to allow it to operate effectively
and exert control over, and provide
challenge and guidance to, the business
and its management team. No individual
Board member has unconstrained powers
to make decisions of a material nature.
Role of Chairman and Chief Executive
The Chairman and Chief Executive Board
positions are separate with clearly defined
individual duties and responsibilities. The
Chairman is responsible for the leadership
and management of the Board and its
governance and as such meets regularly
and separately with the executive and non-
executive directors to discuss matters for
the Board.
The Chief Executive is responsible for day-
to-day management and leadership of the
Group. This includes guiding the leadership
team (details of whom are on pages 60–65),
in its formulation, review and confirmation
of the Group strategy for Board approval
and subsequent execution.
The Board convenes regularly with at least
10 scheduled meetings per year. These
meetings incorporate an annual strategy
day and scheduled presentations by
Leadership team members to provide the
Board with additional insight into their
area of expertise. Additional meetings
are held in person or via online audio and
web conferencing platforms, whichever
provides the most efficient, timely, or safe
solution at a given time. Board meetings
have continued to be held regularly via
teleconference since the start of pandemic
measures in March 2020. This modus
operandi remains an effective alternative
to in person meetings, and is used as and
when considered appropriate.
Details of Directors’ attendance at
scheduled Board and Committee meetings
during the year can be found on page 72
within the Director’s report.
QCA Principle 6: Ensure that
between them, the Directors
have the necessary up-to-date
experience, skills and capabilities
The Board composition has changed in
the year but is still considered to have
all appropriate skills, experience and
knowledge sufficient to give the Board the
ability to constructively challenge strategy,
decision making and scrutinise business
performance.
The Board’s biographical details are set
out on the Group’s website and within
this Annual Report and Accounts on page
60–65.
Board composition remains under review
to ensure it remains appropriate to the
strategic and managerial requirements
of the Group. One third of the Directors
are required, in accordance with the
Company’s Articles of Association, to retire
annually in rotation. This enables the
Shareholders to decide on the election of
the Company’s Board.
Attendance and participation in relevant
training, networking and update events are
encouraged in order to create, maintain
or enhance relevant skills and knowledge.
Updates from the Quoted Companies
Alliance and external advisers are utilised
to ensure relevant knowledge of Corporate
Governance matters where appropriate.
All Directors have access to the Group’s
(or independent) professional advice at
the Company’s expense. In addition, they
have access to the advice and services of
the Company Secretary who is responsible
to the Board for advice on corporate
governance matters.
QCA Principle 7: Evaluate Board
performance based on clear and
relevant objectives, seeking
continuous improvement
As part of his responsibilities with regards
Board effectiveness and governance,
the Chairman, informally assesses the
performance of the Board and its Directors
on an ongoing basis and brings to the
relevant party’s attention any areas for
improvement.
The Board has committed to using the QCA
Board effectiveness review to assess the 12
defined key areas of Board effectiveness.
The next scheduled review is due to be
completed by September 2022.
The Board is satisfied that its operating
culture is open and dynamic enough not
to warrant the use of Group resources
for an externally facilitated review at this
time. This approach will be reviewed on an
annual basis.
The effectiveness of the Board and its
Committees are reviewed on at least an
annual basis but kept under review in
accordance with Corporate Governance
best practice.
QCA Principle 8: Promote a
corporate culture that is based on
ethical values and behaviours
As an SME, we recognise that it’s our
people that will underpin delivery of our
business model. We therefore aim to
create systems and roles that support the
Autins Group PLC Annual Report 2021 69
CORPORATE GOVERNANCE STATEMENT for the year ended 30 September 2021 continued
CORPORATE GOVERNANCE STATEMENT for the year ended 30 September 2021 continued
recruitment, retention, engagement and
development of our staff in response to
ever-changing customer demands.
Autins operates its core Values that seek to
establish a framework which all employees
can support, will govern our behaviours
and underpin a high performance culture
that the Board believes is required in order
to deliver our strategy.
Our aim is that the Group’s culture will
be built on these Autins Values and they
will inform the expected behaviours that
will be an integral part of our induction,
appraisal and performance management
and remuneration processes. We have
already established a twice yearly
leadership organisational management
review which allows for peer to peer
review of critical business challenges, staff
performance and reward.
A positive health and safety culture is
promoted within the business and the
Group seek to reflect this in all of our
policies and procedures, as well as in our
approach to the training and development
of the people involved in our operations.
Health and Safety is the standing first
agenda item at all Board and leadership
meetings. The Group’s Health & Safety
Manager, who reports ultimately to the
Chief Executive, has direct access to the
executive directors should he wish to raise
any urgent concerns.
The Group’s policies and procedures are
given to all new employees at induction,
and are available to both permanent
and temporary staff via our employee
engagement app. The app is also the
Group’s portal for anti-bribery, corruption
and whistle-blowing policy. Any concerns
raised are passed directly to the Chairman
of the Audit Committee for independent
review. All policies and procedures are
subject to a periodic review and re-
approval to ensure they continue to meet
their aims.
The Group’s share dealing code is
applicable to all staff and available for
review on the employment engagement
app. All staff are subject to a closed period
from the last day of each full or half year
until 48 hours after the results for that
period have been published and require
authorisation from the Company Secretary
for any trading activity outside of a
close period.
QCA Principle 9: Maintain
Governance structures and
processes that are fit for purpose
and support good decision making
by the Board
The Board maintains separate Audit,
Nomination and Remuneration
Committees whose purpose is to consider
and oversee issues of policy outside main
Board meetings.
Audit Committee
The Audit Committee comprises the two
Non-executive Directors and is chaired by
Neil MacDonald.
The Committee’s role is described within
the Audit Committee Report set on
pages 78 to 79.
Remuneration Committee
The Remuneration Committee comprises
the two non-executive directors and
is chaired by Neil MacDonald. The
Committee is responsible, within its
agreed terms of reference, for the following
remuneration matters:
• Setting and reviewing the remuneration
policy for all executive directors.
• Confirm that remuneration payments
made to directors are consistent with
approved policy.
• Ensuring that remuneration payments
are in accordance with appropriate
benchmarks as well as assessing
changes in practice that may have future
remuneration impacts.
• Overseeing incentives-based
remuneration for senior management or
other employees identified as relevant by
the Committee.
QCA Principle 10: Communicate
how the Group is governed and
is performing by maintaining a
dialogue with shareholders and
other relevant stakeholders
The Group communicates formally
with shareholders via the Annual
Report and Accounts, the full-year and
half-year results announcements and
associated presentations, periodic market
announcements and trading updates (as
appropriate) and the AGM.
The executive directors periodically meet
with analysts and shareholders in face-to-
face meetings as well as hosting investor
roadshows and events both at the Group’s
and investors’ premises.
The Group’s website has been designed
to allow a more accessible platform
to communicate the Group’s strategy,
products and processes to the wider
community. A dedicated Investors section
is maintained within the main site and
is updated regularly. The Investors’
website contains all financial reports
and associated Investor presentations
since the Group’s Initial Public Offering,
together with downloadable copies of
standing data (including the terms of
reference of the Board’s subcommittees)
that are of use to stakeholders. During 2021
we have continued to use social media
platforms, including LinkedIn internal
employee intranet, primarily for company
wide announcements and to promote
success stories.
This governance statement was
last reviewed and approved on
24 January 2022.
In carrying out these duties the Committee
shall ensure the appropriateness,
relevance and market practice in respect of
such remuneration policy.
Nomination Committee
The Nomination Committee comprises the
two non-executive directors and is chaired
by Adam Attwood. It has responsibility
for reviewing the size, composition and
structure of the Board (and its Committees)
and making recommendations of any
changes it believes are required for
succession planning. The Committee
identifies and nominates for approval by
the Board candidates to fill vacancies as
and when they arise as well as reviewing
the results of any Board performance
evaluations and proposing corrective
actions if required. The Committee, in
conjunction with the Chief Executive,
reviews annually the succession planning
strategy for the senior leadership team.
Whilst the Committee has ultimate
responsibility for reviewing the structure,
size and composition of the Board and
recommending any changes required, in
practice the Board as a whole considers
any recommendations for appointments.
Interaction with the Board and
governance
During the year, the Chair of each
committee will provide the Board with a
summary of key issues considered, and
conclusions drawn, at the committee
meetings. Details regarding the frequency
and attendance of meetings for these
committees are contained in the
Director’s Report.
Written terms of reference have been
established (and are regularly reviewed)
for all Board committees. These terms
of reference are available on the Group’s
Investor website and confirm the duties,
authority, reporting responsibilities
and minimum meeting frequency for
each committee.
Board committees are authorised, in the
furtherance of their duties, to engage the
services of external advisers as they deem
necessary at the Company’s expense.
70
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 71
DIRECTORS’ REPORT for the year ended 30 September 2021
DIRECTORS’ REPORT continued for the year ended 30 September 2021 continued
The Directors present their report and the audited financial statements for the Group and the Company for
the year ended 30 September 2021.
In accordance with section 415 of the Companies Act 2006. Particulars of important events affecting the
Group, together with the factors likely to affect its future development, performance and position are set out
in the strategic report on pages 22 to 25 which is incorporated into this report by reference.
The Directors’ statement on corporate governance is set out on pages 66 to 71. This report should be read
in conjunction with information concerning Directors’ Remuneration and employee share schemes in the
Remuneration report on pages 76 and 77, and which is incorporated by way of cross-reference into the
Directors’ Report.
The principal activities of the Group are the manufacture and sale of insulating materials primarily to the
automotive industry. The Company is an investment holding company. The Directors are not aware, at the
date of this report, of any likely changes in the Group’s activities in the next year.
Results and dividends
The results for the year are set out in the consolidated income statement and consolidated statement of
comprehensive income on pages 88 and 89. Following the year-end, the Directors assessed the appropriateness
of the Group declaring a final dividend and concluded that no dividend would be appropriate.
Directors
The Directors who served during the year under review and up to the date of approving the Annual Report
and Accounts were:
• Adam Attwood;
• Ian Griffiths (resigned 12 March 2021);
• Gareth Kaminski-Cook;
• Neil MacDonald; and
• Kamran Munir.
Corporate governance
The Directors’ statement regarding corporate governance can be found on pages 66 to 71. The Company is a
member of the Quoted Company Alliance (‘QCA’) and has adopted the QCA Corporate Governance Code for
Small and Mid-Size Quoted Companies (the implementation of corporate governance standards through
the year).
Board of Directors and Board committees
Biographical details of all the Directors at the date of this report are set out on pages 60 to 65.
The Board has formally delegated certain duties and responsibilities to the Audit, Remuneration and
Nomination Committees. These committees seek advice from the Company’s advisors as the need arises
and operated throughout the year. Their roles and membership are stated on pages 68 to 71 as part of the
corporate governance statement.
Meetings of the Board and its Committees
The following table sets out the number of meetings of the Board and Committees during the year under
review and individual attendance by the relevant members at these meetings:
Board
Audit Committee
Remuneration Committee Nomination Committee
Number
Attended
Number
Attended
Number
Attended
Number
Attended
Adam Attwood
Ian Griffiths (resigned
12 March 2021)
Gareth Kaminski-Cook
Kamran Munir
Neil MacDonald
12
5
12
12
12
12
5
12
12
12
3
1
3
3
3
3
1
3
3
3
2
1
2
2
1
2
1
1
1
1
1
1
* Number of potential meetings adjusted for date of appointment and/or resignation
Should a director be unable to attend a meeting, their comments on the business to be considered at
the meeting are discussed with the Chairman ahead of the meeting so that their contribution can be
included in the wider Board discussion.
Auditor independence
The Audit Committee and the Group’s external auditor, BDO LLP, have safeguards in place to avoid the
possibility that the auditor’s objectivity and independence could be compromised. These safeguards
include the auditor’s report to the Audit Committee on the actions they take to comply with the
professional and regulatory requirements and best practice designed to ensure their independence
from the Company.
The Group’s auditor, BDO LLP did not undertake any non-audit work in the year.
Re-election of Directors
At every Annual General Meeting, one-third of the directors (excluding any director appointed since the
previous AGM) or, if their number is not a multiple of three, the number nearest to but not exceeding
one-third, shall retire from office by rotation.
As announced on 16 December 2019 Kamran Munir was appointed to the board as Chief Financial
Officer. He was formally elected at the AGM in March 2021. Adam Attwood was also formally re-elected
as Chairman in the same AGM.
Directors’ interests and indemnity arrangements
At no time during the year did any director hold a material interest in any contract of significance
with the Company or any of its subsidiary undertakings excepting an indemnity provision between
each director and the Company and employment contracts between each executive director and the
Group. The Group has purchased and maintained throughout the year Directors’ and Officers’ liability
insurance in respect of all Group companies.
Directors’ interests in shares
The beneficial interests in the shares of the Company of those Directors serving at 30 September 2021
are noted in the Directors Remuneration report set on pages 76 and 77.
Share capital
Full details of the Company’s authorised and issued share capital are set out in note 19 to the
consolidated financial statements.
The Company has one class of ordinary share capital with a nominal value of £0.02 each. The rights and
obligations attached to the ordinary shares are governed by UK law and the Company’s Articles of Association.
Major interests in shares
The following substantial interests (3% or more) in voting rights attaching to the Company’s ordinary
shares had been notified to the Company:
Shareholder
Stonehage Fleming Family & Partners
Schroder Investment Management
Premier Miton Group (formerly Miton Group plc)
Thornbridge Investment Management
Ruffer LLP
Kevin Westwood
Karen Holdback
Unicorn Asset Management
Toscafund
Number of
voting rights
as at
30 September
2021
% voting
rights as at
30 September
2021
Number of
voting rights
as at
30 September
2020
% voting
rights as at
30 September
2020
7,900,000
7,835,000
4,530,156
2,500,000
2,490,741
2,025,000
2,025,000
1,769,806
1,340,300
19.95% 7,850,338
19.78% 8,647,127
11.44% 4,530,156
6.31% 2,500,000
6.29% 2,490,741
5.11% 2,025,000
5.11% 2,025,000
4.97% 1,769,806
3.38% 1,340,300
19.82%
21.84%
11.44%
6.31%
6.29%
5.11%
5.11%
4.47%
3.38%
72
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 73
DIRECTORS’ REPORT continued for the year ended 30 September 2021 continued
DIRECTORS’ REPORT continued for the year ended 30 September 2021 continued
Financial risk management
In certain circumstances, the Group uses financial instruments to manage specific types of financial
risks, including those relating to credit and foreign currency exchange. The Group’s objectives and
policies on financial risk management including information on liquidity, capital, credit and risk can be
found on pages 106 to 108 of the financial statements.
Future business developments
The Group’s strategy is explained in the Strategic Report section of this Annual Report and Accounts
which, as noted in the preamble to the Directors’ Report, is incorporated into this report by reference.
Research & Development
The Group’s dedicated Research and Product Development (‘R&PD) plan, first launched in FY17, was
modified in the year (in response to the overall costs reduction programme) to focus on those items that
could deliver enhanced value to the Group in the near term. Particular focus was paid to improving the
environmental impacts of our products and developing materials and processes tailored for the evolving
electric vehicle market. During the year the patent for an encapsulation acoustic product continued to
be progressed, new alternative and improved materials were tested showing potential for future value
improvements, and the Neptune manufacturing process was improved to run more consistently and at
improved yields. Office pod products have also been developed further with increased sales.
The high level of success in the year led to the certain of costs being recognised as intangible assets
having met the Group’s stated accounting policy for such expenditure.
The R&PD plan is reviewed at least twice per annum to ensure its focus continues to address customer
and market problems.
Health and safety
The Chief Executive, with support from a full time Environmental, Health and Safety professional, has
overall accountability for health and safety across the organisation.
The Group remains committed to providing a safe and healthy working environment for staff and
contractors alike. Groupwide health and safety standards and systems exist to set out, in support of a
one company approach, the required range of policies and procedures designed to manage risks and
promote wellbeing at all sites.
Management and the Board regularly review a range of health and safety performance measures
and take appropriate steps to address any areas for concern including ensuring lessons learned from
incidents that occur are shared across the Group for best practice improvements.
Since 2020 an increased level of attention was given to knowledge and awareness around mental health
in the workplace, including home working. This included external training for the Group H&S Manager
and UK HR Manager.
In response to the Covid pandemic, risk assessments and Covid safe working practice policies were
prepared for all sites and implemented rigorously. Travel was minimised and social distancing and
adoption of PPE was made mandatory. These procedures remain in place.
Charitable and political donations in the year
The Company did not make any political or charitable donations during the year.
Going concern
Going concern has been discussed within the Financial Review on pages 43–44.
Auditor
BDO LLP, the Company’s independent auditor, has expressed its willingness to continue in office.
As recommended by the Audit Committee and pursuant to section 487 of the Companies Act 2006,
the Company will propose a resolution at the AGM to reappoint BDO LLP as auditor and authorise
the Directors to agree its remuneration.
Audit information
The Directors who were in office on the date of approval of the Directors’ Report have confirmed that,
so far as they are aware, there is no relevant audit information of which the Company’s auditor is
unaware. Each of the directors has confirmed they have taken all the reasonable steps that he ought to
have taken as a director to make himself aware of any relevant audit information and to establish that
the Company’s auditor is aware of the information.
The confirmation is given and should be interpreted in accordance with the provisions of section 418 of
the Companies Act 2006.
Annual General Meeting
Details of the Company’s Annual General Meeting and the resolutions to be proposed are set out in the
separate Notice of Meeting.
The meeting will be held at 11am on 17 March 2022 at the Company’s main offices at Central Point One,
Central Park Drive, Rugby, Warwickshire, CV23 0WE.
The Directors’ Report has been approved by the Board of Directors on 24 January 2022.
By order of the Board.
KAMRAN MUNIR
Company Secretary
24 January 2022
Autins Group plc
Central Point One
Central Park Drive
Rugby
Warwickshire
CV23 0WE
Company number: 08958960
74
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 75
DIRECTORS’ REMUNERATION REPORT
DIRECTORS’ REMUNERATION REPORT continued
The remuneration of the executive directors and certain other key management team members
is subject to the approval and oversight of the Remuneration Committee which is chaired by
Neil MacDonald.
The Company’s remuneration policy is designed to promote the achievement of its strategic goals with
regard to growth and diversification and to attract and retain staff and directors capable of accelerating
achievement of the strategic plans.
In setting the measurement of executive performance, due notice is taken of the risk profile of the
business and to reward progress. The committee believes that the executive directors and leadership
team should be rewarded for securing long-term growth that provides for a sustained growth of
investor returns.
Fixed pay is based on a market-based approach which takes into account the size of the Company, peer
review of compensation packages and the experience and qualifications of the executive in question.
Variable pay is designed to promote outperformance, which is achievable, repeatable and sustainable.
Directors
The Directors who served during the year under review and up to the date of approving the Annual
Report and Accounts are disclosed in the Directors’ Report.
At every Annual General Meeting, one-third of the Directors (excluding any Director appointed since the
previous AGM) or, if their number is not a multiple of three, the number nearest to but not exceeding
one-third, shall retire from office by rotation.
Directors’ interests – interests in shares
2p ordinary
shares at
30 September
2021
% of issued
ordinary
share capital
Adam Attwood
Ian Griffiths (resigned 12 March 2021)
Gareth Kaminski-Cook
Kamran Munir
Neil MacDonald
600,000
14,311
180,228
–
125,000
1.52
0.04
0.46
–
0.32
2p ordinary
shares at
1 October
2020
600,000
14,311
180,228
–
125,000
% of issued
ordinary
share capital
1.52
0.04
0.46
–
0.32
Directors’ interests – interests in share options
Details of options held by Directors who were in office at 30 September 2021 are set out below. The
Company’s option schemes are set out in more detail in notes 20 and 24 to the financial statements.
Kamran Munir
Gareth Kaminski-Cook
Date of Grant
Number
Exercise Price
Expiry Date
20 January
2021
20 January
2021
1,064,189
1,459,459
£nil
£nil
1 October
2025
1October
2025
The market price of the Company’s shares at 30 September 2021 was 22.5 pence. The range of market
prices during the year was 15.0 pence to 24.5 pence per share.
Contracts of service
The executive directors, Gareth Kaminski-Cook and Kamran Munir, each have a service agreement
containing one year’s and six months’ notice respectively, and claw back and malus clauses with regard
to any paid or unpaid bonuses.
The non-executive directors, Adam Attwood and Neil MacDonald, have a service agreement with a three-
month notice period.
Salaries and benefits
The Remuneration Committee meets at least twice per year in order to consider, review and set the
remuneration packages for the Executive Directors.
Remuneration is benchmarked annually to ensure it remains comparable and competitive with
companies of a similar size and complexity. Remuneration for the executive directors comprises
basic salary, pension contributions and benefits in kind (including healthcare, company cars and life
insurance). The non-executive directors’ remuneration consists of basic salaries but they are also
reimbursed for travel and other out-of-pocket expenses. Remuneration for executive directors also
includes share options as detailed above.
Year ended
30 September 2021
G Kaminski-Cook
K Munir
A Attwood
I Griffiths (resigned 12 March 2021)
N MacDonald
Salary
£000
240
187
60
20
45
552
Benefits
£000
Pension
£000
Total FY21
£000
Total FY20
£000
22
4
-
-
-
26
24
16
-
-
-
286
207
60
20
45
40
618
265
130*
54
41
41
531
* Part period payment, commencing 1st January 2020.
There were no pay rate awards to any of the Board during the year. The Board also took salary
payment deferrals in FY21, which ranged between 10% and 15%, for up to 7 months as part of a
package of measures to assist the company’s liquidity position. The aggregate value of the deferrals
was approximately £53k. These amounts remain unpaid although they are included in the FY21 salary
figures above as it is intended that these amounts will be repaid at a future date still to be determined.
The Board also took 6 months of permanent pay reductions at 20% during the peak pandemic period in
FY20, which lowered the cost for that year by approximately £57k.
By order of the Board
NEIL MACDONALD
Non-Executive Director and Chair of the Remuneration Committee
24 January 2022
76
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 77
AUDIT COMMITTEE REPORT
AUDIT COMMITTEE REPORT continued
Members of the Audit Committee
The Committee currently consists of all serving non-executive directors. The Committee was chaired by
Neil MacDonald during the year.
The Board is satisfied that as Chair of the Committee in the period, Neil MacDonald had relevant and
recent financial experience as well as being a Chartered Accountant who has served as Finance Director
and Chair of Audit Committees in other organisations.
Meetings of the Committee may, by invitation, be attended by the Chief Executive and the Chief Financial
Officer. The Committee met formally four times in the year. There were also several informal meetings
with the external auditors.
The Committee reports the outcome of its deliberations at the subsequent Board meeting and minutes
of each meeting are made available to all members of the Board.
Duties
The Audit Committee’s duties are set out in its terms of reference, which are available on the Company’s
website (www.autins.com/investors) and on request from the Company Secretary.
The normal items of business considered by the Audit Committee during the year included:
• Going concern review, including sensitivity assumptions;
• Review of the financial statements, Annual Report and investor presentation;
• Consideration of the external audit report and management representation letter;
• Review of the interim results and associated presentation for investors;
• Review of the FY21 audit plan and audit engagement letter;
• Meetings with the auditor with and without management present.
In addition, during the current year, the Committee spent time on the following
• Reviewing the terms and conditions of the loan from MEIF and the associated forecasts and covenants;
• Reviewing the terms and conditions of the CBILS loan from HSBC and the associated forecasts
and covenants; and
• Reviewing revised forecasts and projections necessitated by the Covid situation and supply
chain issues
Role of the Auditor
The Audit Committee monitors the relationship with the auditor, BDO LLP, to ensure that auditor
independence and objectivity is maintained.
The Committee monitors the provision of any non-audit services by the external auditor (if any). During
the year no non-audit services have been provided to the Company by the auditor.
The Audit Committee recommends BDO LLP be reappointed as auditor at the next AGM.
Audit process
The auditor prepares and presents a plan for the audit of the full year financial statements that
establishes the scope, areas of special focus and audit timetable. This plan is reviewed and agreed in
advance by the Audit Committee.
Following the audit of the annual financial statements the auditor presents its findings to the Audit
Committee for discussion. There were no major areas of concern highlighted by the auditor during
the year beyond those areas of significant risk and audit judgment that are routinely discussed and
disclosed in their report to the members of the Group.
Internal audit
The Committee considers that, taking account of the size and structure of the Group’s trading and assets,
an internal audit function is not required. The Committee will keep this under review to ensure that as
the Group develops and complexity increases appropriate resources are dedicated to the creation of an
internal audit function.
Risk management and internal controls
As described on pages 69 to 70 of the Corporate Governance Report, the Group has established a
framework of risk management and internal control systems, policies and procedures. The Audit
Committee is responsible for reviewing the risk management and internal control framework and
ensuring that it operates effectively. During the year, the Committee has reviewed the framework and
the Committee is satisfied that it is currently operating effectively.
Whistleblowing
As noted in the Corporate Governance Report, the Group has a formal whistleblowing policy which sets
out the process for any employee of the Group to raise, in confidence, any concerns about possible
improprieties in financial reporting or other governance matters. The Chairman of the Audit Committee
acts as the independent reviewer for any claims that are raised, with any relevant matters and actions
recorded at the next appropriate meeting. During the year, there have been no incidents recorded or
raised for consideration.
By order of the Board
NEIL MACDONALD
Non-Executive Director
24 January 2022
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Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 79
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AUTINS GROUP PLC
Opinion on the financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the Parent
Company’s affairs as at 30 September 2021 and of the Group’s loss for the year then ended;
• the Group financial statements have been properly prepared in accordance with International
Accounting Standards in conformity with the requirements of the Companies Act 2006;
• the parent company financial statements have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice, and
• the financial statements have been prepared in accordance with the requirements of the Companies
Act 2006.
We have audited the financial statements of Autins Group Plc (the ‘parent company’) and its subsidiaries
(the ‘Group’) for the year ended 30 September 2021 which comprise:
Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the
Consolidated and Parent Company Statements of Financial Position, the Consolidated and Parent
Company Statements of Changes in Equity, the Consolidated Statement of Cash Flows and notes to
the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and
International Accounting Standards in conformity with the requirements of the Companies Act 2006.
The financial reporting framework that has been applied in the preparation of the parent company
financial statements is applicable law and United Kingdom Accounting Standards, including Financial
Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted
Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))
and applicable law. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remain independent of the Group and the Parent Company in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s
Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
We have determined going concern to be a key audit matter because the COVID-19 pandemic and
semiconductor shortages has had a major effect on the Group, industry, and wider economy. The further
uncertainty created by the pandemic and resulting semiconductor supply chain impact has therefore
increased the level of estimation and judgement involved in relation to going concern assessments and
was a key area of focus during our audit. Going concern is disclosed in Note 1. Accounting policies
(pages 96 to 97).
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AUTINS GROUP PLC continued
Our evaluation of the Directors’ assessment of the Group and the Parent Company’s ability to continue
to adopt the going concern basis of accounting included:
• We critically assessed management’s trading and cash flow budgets and forecasts, which cover the
period to 31 January 2023. This included challenging the key estimates and judgements and the
evidence underpinning them. In doing so, we specifically considered the principal trading and cash
flow assumptions, the quantum of the banking facilities used in the calculation of the available
liquidity and the impact of the confirmed bank covenants waivers and repayment holidays on these
facilities. Our challenge of the revenue assumptions included consideration of customer enquiries,
current order levels and information from customers regarding expected future volumes and included
information available up to the date of issuance of our report;
• We tested the various scenarios and sensitivities performed by management in respect of the key
assumptions underpinning the budgets and forecasts and challenged the sensitivities to ensure they
reflected all reasonably foreseeable events and circumstances. We also reviewed the reverse stress-
testing performed by management and considered the headroom between the budgets and forecasts
and the reverse stress-test assumptions, together with considering the likelihood that unforeseen
events and circumstances might occur resulting in the reverse stress test becoming a reality;
• We have challenged management’s assessment of COVID-19 and semiconductor shortage impacts,
including consideration of external information, as part of our assessment of the trading and cash flow
budgets and forecasts, and
• In addition to the procedures referred to above, we have considered the information provided to
management by their major customers relating to future activity levels and the previous experience of
these activity levels being met.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the Group and the
Parent Company’s ability to continue as a going concern for a period of at least twelve months from
when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described
in the relevant sections of this report.
Overview
Coverage
Key audit matters
Materiality
99% (2020: 99%) of Group profit before tax
93% (2020: 92%) of Group revenue
87% (2020: 76%) of Group total assets
Impairment Risk
Going Concern
2021
✓
✓
2020
✓
✓
Group financial statements as a whole
£234k (2020: £215k) based on 1% (2020: 1%)
of Group turnover.
80
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AUTINS GROUP PLC continued
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AUTINS GROUP PLC continued
An overview of the scope of our audit
Our Group audit was scoped by obtaining an understanding of the Group and its environment, including
the Group’s system of internal control, and assessing the risks of material misstatement in the financial
statements. We also addressed the risk of management override of internal controls, including
assessing whether there was evidence of bias by the Directors that may have represented a risk of
material misstatement.
In establishing the overall approach to the Group audit, we assessed the audit significance of each
reporting unit in the Group by reference to both its financial significance and other indicators of
audit risk, such as the complexity of operations and the degree of estimation and judgement in the
financial results.
All of the Group’s three significant components (inclusive of Autins Group Plc) were subjected to full
scope audits for Group purposes. All significant components are located in the UK were audited by
the Group engagement team. The remaining component, Autins GmbH is located in Germany and was
audited by BDO Germany operating under the direction of the Group engagement team. This is the first
year that Autins GmbH has been considered a significant component. The remaining were not significant
and subject to analytical review procedures by the Group audit team.
The significant components within the scope of our work accounted for 93% of group revenues and 87%
of total assets.
Our involvement with component auditors
For the work performed by component auditors, we determined the level of involvement needed in
order to be able to conclude whether sufficient appropriate audit evidence has been obtained as a basis
for our opinion on the Group financial statements as a whole. Our involvement with component auditor
included the following:
• attending planning meetings with the component auditors;
• issuing detailed Group reporting instructions which set out key aspects of the audit such as
component materiality, significant audit and accounting issues from a Group perspective and the key
audit procedures to be performed in order to address these;
• reviewing the Group reporting documents submitted by the component auditor along with the work
performed on significant risk areas and detailed testing throughout their audit file to ensure the work
performed was sufficient for our purposes and consistent with Group instructions, and
• detailed discussion with the component team of the outcome of the work performed.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period and include the most significant assessed risks
of material misstatement (whether or not due to fraud) that we identified, including those which had
the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and directing
the efforts of the engagement team. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. In addition to the matter described in the “Conclusions relating to going
concern” section, we have determined the matter described below to be the key audit matters.
Key audit matter
How the scope of our audit addressed the key audit matter
Impairment risks
(Accounting policies and significant
judgements and estimates (note 1),
property plant and equipment (note 11)
and intangible assets (note 13)
The Group has goodwill, other
intangibles, property, plant and
equipment and right of use assets
of £18.4 million. In accordance with
accounting standards, goodwill is not
amortised but is subject to an annual
impairment review through assessment
of the value in use of the Automotive
Noise, Vibration and Harshness (“NVH”)
CGU to which it is attributable. The
existence of continuing operating
losses, the impact of the COVID-19
pandemic, semiconductor shortage and
the Group’s market capitalisation being
lower than the consolidated net assets,
provide indicators that impairments
may be present.
In addition, property, plant and
equipment within the NVH CGU includes
the Neptune production facility with
a net book value of £4.9 million. This
facility was completed and brought into
use in 2018 and whilst volumes continue
to increase, it is currently still operating
below full capacity and continued
to generate losses in the year ended
30 September 2021.
Therefore we consider there to be
a significant risk in relation to the
achievement of the forecast future
trading and cash flows used to
determine the value in use supporting
the carrying value of the goodwill, other
intangible assets, property, plant and
equipment and right of use assets in
the NVH CGU and the Neptune facility
within the NVH CGU.
No other CGU’s have any assets
which could be subject to material
impairment.
We have tested the judgements made by management
in undertaking the impairment tests. This included:
• The identification of the Cash Generating Units
(CGUs) and validating the assumptions and evidence
supporting the allocation of the associated revenue,
costs and assets to CGUs;
• Reconciling the information used in the value in use
models to the underlying accounting records and the
budgets and forecasts for the Group. It also included
considering whether the responses to the COVID-19
pandemic and semiconductor shortages impacted
any of the judgements and to confirm these were
appropriately modelled in the budgets and forecasts;
• The recalculation of the discount rate used to discount
the cash flows in each CGU and changes made to
incorporate the risks in the business and sector;
• Comparing the forecasts to the information used
to assess the going concern assumption and
challenging the robustness of the key assumptions.
These assumptions included the rate of securing
new customers for the Neptune facility and the
assessment of conversion rates in the enquiry pipeline
by reference to historic, other internal and third party
evidence;
• Considering the appropriateness of the sensitivities
applied by management, with specific consideration
of the impacts of the COVID-19 pandemic,
semiconductor shortages and the structural
changes in the automotive sector in the UK and
internationally. This also includes reviewing the
stress testing undertaken by management to assess
the appropriateness of the assumptions applied
for the relevant scenarios, assessing the level of
underperformance against management’s forecasts
required to eliminate the headroom for both the NVH
CGU and the Neptune facility and considering the
level of headroom after the application of the relevant
sensitivities;
• Engaging our internal valuation experts, working with
them to confirm the appropriateness of the models
used by management to calculate the value in use for
each CGU, and the calculation of the discount rates,
and
• Considering the outcomes achieved compared with
the prior year forecasts to understand the reasons for
the variations and challenged how the current year’s
Key observations:
Nothing has come to our attention as a result of performing the above procedures that causes us to
believe that the assumptions and judgements used as inputs in the impairment considerations were
inappropriately applied.
82
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AUTINS GROUP PLC continued
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AUTINS GROUP PLC continued
Our application of materiality
We apply the concept of materiality both in planning and performing our audit, and in evaluating the
effect of misstatements. We consider materiality to be the magnitude by which misstatements, including
omissions, could influence the economic decisions of reasonable users that are taken on the basis of the
financial statements.
In order to reduce to an appropriately low level the probability that any misstatements exceed
materiality, we use a lower materiality level, performance materiality, to determine the extent of testing
needed. Importantly, misstatements below these levels will not necessarily be evaluated as immaterial
as we also take account of the nature of identified misstatements, and the particular circumstances of
their occurrence, when evaluating their effect on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole
and performance materiality as follows:
Group financial statements
Parent company financial statements
Materiality
Basis for
determining
materiality
Rationale for
the benchmark
applied
Performance
materiality
Basis for
determining
performance
materiality
2021
£’000
234
2020
£’000
215
2021
£’000
210
1% of
Group turnover
1% of
Group turnover
1.5% of
Group net assets
2020
£’000
190
2% of
Group net assets
limited by 95% of
group materiality
Revenue is the
key driver of
the business
value and is the
underlying driver
for management’s
key measure of
performance
Revenue is the
key driver of
the business
value and is the
underlying driver
for management’s
key measure of
performance
Calculated as a
percentage of
Group materiality
for Group
reporting
purposes
Calculated as a
percentage of
Group materiality
for Group
reporting
purposes
175
151
158
133
Set 75% of
materiality after
having considered
a number of
factors including
the expected
total value of
known and likely
misstatements
and the level
of transactions
in the year
Set 70% of
materiality after
having considered
a number of
factors including
the expected
total value of
known and likely
misstatements
and the level
of transactions
in the year
Set 75% of
materiality after
having considered
a number of
factors including
the expected
total value of
known and likely
misstatements
and the level
of transactions
in the year
Set 70% of
materiality after
having considered
a number of
factors including
the expected
total value of
known and likely
misstatements
and the level
of transactions
in the year
Component materiality
We set materiality for each component of the Group which ranged from £112,000 to £210,000. In the
audit of each component, we further applied performance materiality levels of 75% of the component
materiality to our testing to ensure that the risk of errors exceeding component materiality was
appropriately mitigated.
Reporting threshold
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in
excess of £7,100 (2020: £10,750). We also agreed to report differences below this threshold that, in our
view, warranted reporting on qualitative grounds.
Other information
The directors are responsible for the other information. The other information comprises the
information included in the Annual Report and Accounts other than the financial statements and our
auditor’s report thereon. Our opinion on the financial statements does not cover the other information
and, except to the extent otherwise explicitly stated in our report, we do not express any form of
assurance conclusion thereon. Our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact.
We have nothing to report in this regard.
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course of the audit,
we are required by the Companies Act 2006 and ISAs (UK) to report on certain opinions and matters as
described below.
Strategic report and
Directors’ report
Matters on which we
are required to report
by exception
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic report and the Directors’ report
for the financial year for which the financial statements are prepared is
consistent with the financial statements; and
• the Strategic report and the Directors’ report have been prepared in
accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and Parent
Company and its environment obtained in the course of the audit, we
have not identified material misstatements in the strategic report or the
Directors’ report.
We have nothing to report in respect of the following matters in relation to
which the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company,
or returns adequate for our audit have not been received from branches not
visited by us; or
• the Parent Company financial statements are not in agreement with the
accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made, or
• we have not received all the information and explanations we require for
our audit.
Responsibilities of Directors
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for
the preparation of the financial statements and for being satisfied that they give a true and fair view, and
for such internal control as the directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the
Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the Directors either intend to
liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but
to do so.
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AUTINS GROUP PLC continued
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF AUTINS GROUP PLC continued
Our audit procedures were designed to respond to risks of material misstatement in the financial
statements, recognising that the risk of not detecting a material misstatement due to fraud is higher
than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment
by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the
audit procedures performed and the further removed non-compliance with laws and regulations is
from the events and transactions reflected in the financial statements, the less likely we are to become
aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Parent Company’s members, as a body, in accordance with Chapter 3
of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the
Parent Company’s members those matters we are required to state to them in an auditor’s report and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Parent Company and the Parent Company’s members as a body, for our audit
work, for this report, or for the opinions we have formed.
JONATHAN GILPIN (SENIOR STATUTORY AUDITOR)
For and on behalf of BDO LLP, Statutory Auditor
Birmingham
United Kingdom
24 January 2022
BDO LLP is a limited liability partnership registered in England and Wales (with registered number
OC305127).
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the Group and the
industry in which it operates and considered the risk of acts by the Group which were contrary to
applicable laws and regulations, including fraud. These included, but were not limited to compliance
with the Companies Act 2006, the AIM listing rules and accounting standards.
We focused on areas that could give rise to a material misstatement in the Group financial statements.
Our testing included, but was not limited to:
• enquiries of management;
• review of minutes of Board meetings throughout the year;
• obtaining an understanding of the control environment in monitoring compliance with laws
and regulations;
• challenge of key estimates and judgements, including those applied to key audit matters by
management in the financial statements to check that they are free from management bias;
• identifying and testing a sample of journal entries for the following journal types:
− any journals outside of the normal course of business or indicative of manipulation of the
financial statements;
− all journals posted to revenue to ascertain if any unusual transactions exist which are outside the
normal course of business; and
− any manual or late journals posted at a consolidated level
• performing the following revenue tests in response to the ISA240’s presumed fraud risk:
− review the revenue nominal accounts for any unusual transactions;
− test a sample of credit notes issued in the year and in October 2021;
− review the timing of revenue recognition, with a particular focus on tooling sales and the evidence of
customer acceptance; and
− review the revenue recognition policies and noted that these have been applied consistently
• consideration of management’s assessment of related parties and any other unusual transactions
and evaluating the process for identifying and monitoring any such transactions, and
• consideration of the total unadjusted audit differences for indications of bias or
deliberate misstatement.
86
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 87
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 September 2021
Loss after tax for the year
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Currency translation differences
Total comprehensive expense for the year
The notes on pages 96 to 124 form part of these financial statements.
2021
£000
2020
£000
(1,084)
(1,723)
2
18
(1,082)
(1,705)
CONSOLIDATED INCOME STATEMENT
for the year ended 30 September 2021
Revenue
Cost of sales excluding exceptional costs
Exceptional cost of sales
Total cost of sales
Gross profit
Other operating income
Distribution expenses
Administrative expenses excluding exceptional costs and amortisation
Exceptional administrative expenses
Amortisation of acquired intangible assets
Total administrative expenses
Operating loss
Finance expense
Share of post-tax profit of equity accounted joint ventures
Loss before tax
Tax credit
Loss after tax for the year
Earnings per share for loss attributable to the owners of the parent
during the year
Basic (pence)
Diluted (pence)
All amounts relate to continuing operations.
The notes on pages 96 to 124 form part of these financial statements.
Note
2021
£000
2020
£000
4
5
5
5
5
5
8
14
9
10
10
23,431
21,517
(17,103)
(15,472)
–
(164)
(17,103)
(15,636)
6,328
649
(604)
5,881
787
(650)
(6,890)
(6,780)
–
(173)
(7,063)
(690)
(542)
53
(292)
(238)
(7,310)
(1,292)
(523)
55
(1,179)
(1,760)
95
37
(1,084)
(1,723)
(2.74)p
(2.74)p
(4.35)p
(4.35)p
88
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 89
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2021
PARENT COMPANY STATEMENT OF FINANCIAL POSITION
As at 30 September 2021
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Investments in equity-accounted
joint ventures
Deferred tax asset
Total non-current assets
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets
Current liabilities
Trade and other payables
Loans and borrowings
Lease liabilities
Total current liabilities
Non-current liabilities
Trade and other payables
Loans and borrowings
Lease liabilities
Deferred tax liability
Total non-current liabilities
Total liabilities
Net assets
Equity attributable to equity holders of the company
Share capital
Share premium account
Other reserves
Currency differences reserve
Profit and loss account
Total equity
Note
2021
£000
2020
£000
11
12
13
14
19
15
16
17
18
12
17
18
12
19
9,636
4,876
3,059
120
95
10,082
5,001
3,322
147
149
17,786
18,701
2,433
3,630
1,262
7,325
1,938
4,339
2,974
9,251
25,111
27,952
2,584
719
842
4,145
111
3,248
4,794
46
8,199
12,344
12,767
3,151
1,027
917
5,095
117
3,847
4,970
74
9,008
14,103
13,849
20
22
22
22
22
792
792
15,866
15,866
1,886
(125)
1,886
(127)
(5,652)
(4,568)
12,767
13,849
Non-current assets
Property, plant and equipment
Intangible assets
Investments
Total non-current assets
Current assets
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets
Current liabilities
Trade and other payables
Loans and borrowings
Total current liabilities
Non-current liabilities
Loans and borrowings
Total non-current liabilities
Total liabilities
Net assets
Equity attributable to equity holders of the company
Share capital
Share premium account
Other reserves
Profit and loss account
Total equity
Note
11
13
14
2021
£000
2
57
2020
£000
–
57
16,239
16,298
16,239
16,296
16
9,359
10,031
155
9,514
25,812
1,390
11,421
27,717
17
18
18
20
22
22
22
8,354
600
8,954
2,855
2,855
11,809
14,003
8,389
729
9,118
3,378
3,378
12,496
15,221
792
792
15,866
15,866
1,886
1,886
(4,541)
(3,323)
14,003
15,221
The Company has elected to take the exemption under section 408 of the Companies Act not to
present the parent Company profit and loss account. The loss for the parent Company for the year was
£1,218,000 (2020: loss of £1,996,000).
The notes on pages 96 to 124 form part of these financial statements.
The financial statements were approved and authorised for issue by the Board and were signed on its
behalf on 24 January 2022.
The notes on pages 96 to 124 form part of these financial statements.
The financial statements were approved and authorised for issue by the Board and were signed on its
behalf on 24 January 2022.
KAMRAN MUNIR
Group Chief Financial Officer
Autins Group plc
Registered number: 08958960
KAMRAN MUNIR
Group Chief Financial Officer
Autins Group plc
Registered number: 08958960
90
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 91
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2021
Share
capital
£000
Share
premium
account
£000
Other
reserves
£000
Cumulative
currency
differences
reserve
£000
Profit and
loss
£000
Total
equity
£000
At 30 September 2020
792
15,866
1,886
(127)
(4,568)
13,849
Comprehensive income for the year
Loss for the year
Other comprehensive income
Total comprehensive expense
for the year
–
–
–
–
–
–
–
–
–
(1,084)
(1,084)
–
2
(1,084)
(1,082)
2
2
At 30 September 2021
792
15,866
1,886
(125)
(5,652)
12,767
At 30 September 2019
Effect of adoption of IFRS 16 (note 1)
Comprehensive income for the year
Loss for the year
Other comprehensive income
Total comprehensive expense
for the year
Contributions by and distributions
to owners
Share issue expenses
(re August 2019 placing)
Share based payment
Total contributions by and
distributions to owners
At 30 September 2020
Share
capital
£000
Share
premium
account
£000
792
15,883
Other
reserves
£000
1,886
Cumulative
currency
differences
reserve
£000
Profit and
loss
£000
Total
equity
£000
(145)
(2,313)
16,103
–
–
–
–
–
–
–
–
–
–
–
(17)
–
(17)
–
–
–
–
–
–
–
–
–
18
18
–
–
–
(517)
(517)
(1,723)
(1,723)
–
18
(1,723)
(1,705)
–
(15)
(15)
(17)
(15)
(32)
792
15,866
1,886
(127)
(4,568)
13,849
The cumulative currency differences reserve may be reclassified subsequently to profit and loss.
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2021
Share
capital
£000
Share
premium
account
£000
Other
reserves
£000
Profit and
loss account
£000
Total
equity
£000
792
15,883
1,886
(1,312)
17,249
–
–
–
–
–
–
–
(17)
–
(17)
–
–
–
–
–
(1,996)
(1,996)
(1,996)
(1,996)
–
(15)
(15)
(17)
(15)
(32)
792
15,866
1,886
(3,323)
15,221
At 30 September 2019
Comprehensive income for the year
Loss for the year and total comprehensive expense
Total comprehensive expense for the year
Contributions by and distributions to owners
Shares issued
Share issue expenses
Share based payment
Total contributions by and distributions to owners
At 30 September 2020
Comprehensive income for the year
Loss for the year and total comprehensive expense
Total comprehensive expense for the year
At 30 September 2021
–
–
–
–
–
–
(1,218)
(1,218)
(1,218)
(1,218)
792
15,866
1,886
(4,541)
14,003
92
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 93
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 September 2021
Operating activities
Loss after tax
Adjustments for:
Income tax
Finance expense
Employee share based payment (credit)/charge
Non-cash element of other income
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
Loss on disposal of tangible fixed assets
Amortisation and impairment of intangible assets
Share of post-tax profit of equity accounted joint ventures
Decrease in trade and other receivables
(Increase)/decrease in inventories
Decrease in trade and other payables
Cash generated from operations
Income taxes received/(paid)
Net cash flows from operating activities
Investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from disposal of tangible fixed assets
Dividend received from equity-accounted for joint venture
Net cash used in investing activities
Financing activities
Interest paid
Share issue expenses paid
Bank loans advanced
Loan issue expenses paid
Bank loans repaid
Principal paid on lease liabilities
Hire purchase agreements repaid
Decrease in invoice discounting
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Foreign exchange movements
Cash and cash equivalents at end of year
Cash and cash equivalents comprise:
Cash balances
Bank overdrafts
2021
£000
2020
£000
(1,084)
(1,723)
(95)
542
–
–
788
825
25
282
(53)
1,230
725
(515)
(538)
(328)
902
92
994
(405)
(30)
8
80
(347)
(380)
–
–
–
(753)
(951)
(108)
–
(2,192)
(1,545)
2,820
(37)
1,238
(37)
523
(15)
(109)
836
851
–
317
(55)
588
2,296
23
(1,426)
893
1,481
(5)
1,476
(154)
(125)
–
125
(154)
(421)
(17)
4,523
(66)
(213)
(549)
(168)
(3,716)
(627)
695
2,125
–
2,820
2021
£000
2020
£000
1,262
(24)
1,238
2,974
(154)
2,820
Reconciliation of movements in net cash/financing liabilities
CONSOLIDATED STATEMENT OF CASH FLOWS continued
for the year ended 30 September 2021
Year ended 30 September 2021
Cash and cash equivalents
Cash balances
Bank overdrafts
Financing liabilities
Bank loans
Hire purchase liabilities
Lease liabilities
Year ended 30 September 2020
Cash and cash equivalents
Cash balances
Bank overdrafts
Financing liabilities
Invoice discounting
Bank loans
Hire purchase liabilities
Lease liabilities
Opening
£000
Cash flows
£000
Non-cash
movements
£000
2,974
(154)
2,820
(4,383)
(337)
(5,887)
(10,607)
(7,787)
(1,675)
130
(1,545)
753
108
1,221
2,082
537
(37)
–
(37)
(84)
–
(970)
(1,054)
(1,091)
Opening
£000
Cash flows
£000
Non–cash
movements
£000
3,132
(1,007)
2,125
(3,716)
(216)
(505)
–
(4,437)
(2,312)
(158)
853
695
3,716
(4,244)
168
854
494
1,189
–
–
–
–
77
–
(6,741)
(6,664)
(6,664)
Closing
£000
1,262
(24)
1,238
(3,714)
(229)
(5,636)
(9,579)
(8,341)
Closing
£000
2,974
(154)
2,820
–
(4,383)
(337)
(5,887)
(10,607)
(7,787)
Material non cash transactions
Financing liabilities now include lease liabilities, primarily in respect of property leases, following
the adoption of IFRS 16 from 1 October 2019. Additions of £705,000 net of foreign exchange
movements of £5,000 are shown in non cash movements together with financing charges of £270,000
(2020: The discounted liability at the transition date of 1 October 2019 of £6,422,000 is shown in
non-cash movements together with a £14,000 foreign exchange movement and financing charges
of £305,000).
94
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 95
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS continued
1. Accounting policies
Description of business
Autins Group is a public limited company (Plc) registered and domiciled in England and Wales and
listed on AIM, a market operated by the London Stock Exchange. The principal activity of the Group
is the supply of Noise Vibration and Harshness (NVH) insulating materials. Supply is primarily to the
automotive industry but, more recently, the Group has diversified supply into other industries such as
commercial vehicles, flooring, office pods and building applications. The address of the registered office
is Central Point One, Central Park Drive, Rugby, Warwickshire, CV23 0WE.
Accounting convention and basis of preparation
The financial statements have been prepared in accordance with the historical cost convention and
International Accounting Standards in conformity with the requirements of the Companies Act 2006.
The stated accounting policies have been consistently applied to all periods presented.
The parent company financial statements have been prepared under applicable United Kingdom
Accounting Standards (FRS101) in order to apply International Accounting Standards in conformity with
the requirements of the Companies Act 2006. The following FRS 101 disclosure exemptions have been
taken in respect of the parent company only information:
• IAS 7 Statement of cash flows;
• IFRS 7 Financial instruments disclosures and;
• IAS 24 Key management remuneration.
The consolidated financial statements are drawn up in sterling, the functional currency of Autins
Group plc. The level of rounding for the financial statements is the nearest thousand pounds.
Going concern
The Board have concluded, on the basis of current and forecast trading and related expected cash flows
and available sources of finance, that it remains appropriate to prepare these financial statements on
the basis of a Going Concern.
The Group completed an equity placing with gross proceeds of £3.0 million (£2.8m net of costs) in
December 2021, primarily with the participation and support of its existing shareholders. In addition
dual lender support has been agreed in the form of covenant waivers with testing to resume at the end
of March 2023. The waivers are coupled with a minimum 6-month capital deferment holiday on both
the outstanding CBILS and MEIF term loans. As at the reporting date in January 2022 the prevailing cash
headroom for the Group is in excess of £5.0 million (FY20: £5.6 million). This includes undrawn balances
on the UK invoice financing facility which has in excess of £2.0 million headroom available, with its
operational limit currently agreed at £3.5 million against relevant trade receivables. Despite the Covid
trading backdrop, the Group reported positive operating cash flows of £0.9 million, and £0.75 million of
CBILS loans were repaid during the year.
Whilst the operating cash flows benefit from a combination of improved working capital and cost
management, they are also impacted by significant decreases in revenues as a result of the pandemic
and semiconductor disruption. The Group has also made further operational and overhead cost
improvements, including significant carefully considered headcount reductions which improve the
cost structure by more than £0.7 million per annum, with continuing programmes in place to make
additional cost and profit improvements.
In undertaking their assessment of the future prospects for the Group, the Directors have prepared
trading and cash flow forecasts for the period to 30 September 2026. These take into consideration the
current and expected future impacts of the pandemic and semiconductor supply recovery timelines,
diversification and development of customer product ranges and also have regard to the committed
business and enquiry levels from existing customers. The Directors have also considered the impact of
current and future demand levels for new vehicles, the migration to EV’s and publicly available forward
looking market information regarding market sizes and dynamics. These forecasts have been compared,
together with considering a range of material but plausible downside sensitivities, to the available bank
facilities and the related covenant requirements.
Notwithstanding the agreed deferments, the loan repayments and interest costs are expected to be
adequately covered by operating cash generation over the period and the Group has significant liquidity
headroom within its facilities to accommodate all reasonably foreseeable cash flow requirements in
the event of changes to its demand as a result of prevailing supply chain conditions, or other economic
factors, with further flexibility also available to favourably manage the cost base in respect of operating
costs, should the need arise, or flex other payment structures to increase cash headroom.
The most sensitive factor impacting the forecast period, and the continued availability of the current
facilities, is ensuring that liquidity remains reliably positive (above £0) for the Group, albeit the Board
has set a minimum target of £0.5 million. In the next financial year, achievement of this minimum
required UK (and group) liquidity target, without significant further unplanned cost or efficiency
improvements, is predicated on minimum UK revenue levels of £9.4 million in FY22 and £14.4 million in
FY23. This compares with UK revenues of £14.3 million in FY21, £16.8 million in FY20 and £21.5 million
in FY19. New business continues to be won and, accordingly, the Board are confident that the sales and
liquidity targets will be met, especially having regard to further additional mitigating actions which
remain available to the Group.
The Board continues to review the Group’s banking and funding arrangements with a view to ensuring
that they remain appropriate for the planned growth within mainland Europe and to allow for the more
volatile demand pattern in the current economic environment.
Composition of the Group
A list of the subsidiary undertakings and joint ventures is given in note 14 to the financial statements.
Changes in accounting policies
These financial statements have been prepared in accordance with International Accounting Standards
in conformity with the requirements of the Companies Act 2006 for periods beginning on or after
1 October 2020 with no new standards adopted in these financial statements
New accounting standards applicable to future periods
There are no new standards, interpretations and amendments which are not yet effective in these
financial statements, expected to have a material effect on the Group’s future financial statements.
After Brexit, the UK continues to apply International Accounting Standards in conformity with the
requirements of the Companies Act 2006.
Basis of consolidation
The consolidated financial statements incorporate the results of business combinations using the
acquisition method. In the statement of financial position, the acquiree’s identifiable assets (both
tangible and intangible), liabilities and contingent liabilities are initially recognised at their fair values
at the acquisition date.
The consolidated financial statements present the results of the Company and its subsidiaries
(“the Group”) as if they formed a single entity. Intercompany transactions and balances between
Group companies are therefore eliminated in full.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability
to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group and cease to be consolidated from the date on which
control is transferred out of the Group. Any non-controlling interest in a subsidiary entity is recognised
at a proportionate share of the subsidiary’s net assets or liabilities. On acquisition of a non-controlling
interest, the difference between the consideration paid and the non-controlling interest at that date is
taken to equity reserves.
96
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 97
NOTES TO THE FINANCIAL STATEMENTS continued
NOTES TO THE FINANCIAL STATEMENTS continued
1. Accounting policies continued
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable when performance
obligations are satisfied and represents the amount receivable for goods supplied, net of returns,
discounts and rebates allowed by the Group and value added taxes.
Revenue from the sale of goods is recognised when the customer has taken control of the goods and is
able to benefit from or direct the use of the goods, which is usually when the goods have been accepted
by the customer.
The Group recognises revenue from the sale of tooling when the obligation for it to be capable of the
specified production use are satisfied which is considered to be when the specific tool has passed pre-
production assessment and sign off by the relevant customer engineer.
Where the costs of developing a specific automotive tooling component for a customer do not result
in a product that will enter volume production, the revenue arising from cost recovery for obsolete
materials, tooling and design and development work is recognised at the point of customer acceptance
of the claim.
Expenditure
Expenditure is recognised in respect of goods and services received when supplied in accordance with
contractual terms. Provision is made when a present obligation exists for a future liability relating to a
past event and where the amount of the obligation can be reliably estimated.
Exceptional expenses
The Group classifies certain one-off charges or credits that have a material impact on the financial
results, and which are largely non-trading or not expected to reoccur as ‘exceptional items’. These are
disclosed separately to provide further understanding of the financial performance of the Group, and
are explained in note 5.
Goodwill
Goodwill arising on acquisitions is the excess of the fair value of the cost of acquisition, over the fair
value of identifiable net assets acquired. Any direct costs are expensed in the income statement.
Goodwill on acquisition is recorded as an intangible fixed asset and represents the residual amount
remaining after taking account of the fair values attributed to the identifiable assets, liabilities and
contingent liabilities that existed at the date of acquisition, reflecting their condition at that date.
Adjustments are also made to align the accounting policies of acquired businesses with those of
the Group. This is applied either on initial acquisition or where control is gained over a previously
equity accounted interest in an entity. A fair value is measured for the entire holding on taking control
and in respect of all assets and liabilities resulting in a gain or loss on a previously held and equity
accounted investment.
Goodwill is assigned an indefinite useful economic life. Impairment reviews are performed annually,
or more frequently if events or changes in circumstances indicate that the carrying value may not
be recoverable.
Impairment of non-financial assets
Impairment tests on goodwill are undertaken annually at the financial year end. All other individual
non-financial assets or cash-generating units are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the carrying value exceeds the recoverable
amount of the asset or cash-generating unit. The recoverable amount is the higher of fair value,
reflecting market conditions less costs to sell, and value in use based on an internal discounted cash
flow evaluation.
Impairment charges are included in profit or loss, except to the extent they reverse gains previously
recognised in other comprehensive income. An impairment loss recognised for goodwill is not reversed.
Intangible assets acquired as part of a business combination
Intangible assets acquired in a business combination are identified and recognised separately from
goodwill where they are separable from the acquired entity or give rise to other contractual/legal rights.
Amounts assigned to intangibles acquired as part of a business combination are arrived at by using an
appropriate valuation technique for the asset concerned.
All intangible assets acquired through a business combination are amortised on a straight line basis over
their estimated useful lives.
The intangibles currently recognised by the Group; their useful economic lives and the methods used to
determine the separable cost of the intangibles acquired in business combinations are as follows:
Intangible asset
Useful economic life
Valuation method
Tooling intellectual property
10 years
Key customer relationships
7 years
Estimated discounted cash flow
of post tax royalty earnings
potential
Estimated discounted cash flow
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at
cost less accumulated amortisation and impairment losses.
Property, plant and equipment
Items of property, plant and equipment are initially recognised at cost. As well as the purchase price,
cost includes directly attributable costs, pre-production plant commissioning costs and interest incurred
during the course of construction.
Depreciation is provided on all items of property, plant and equipment so as to write off their cost, less
expected residual value over the expected useful economic lives. It is provided at the following rates:
Plant and machinery
Leasehold improvements
Fixtures and fittings
–
–
–
5–20 years straight line or units of production (see below)
Period of the lease
3–15 years straight line
Depreciation of the Group’s Neptune material production line has been provided based on a fixed unit of
production method since the commencement of commercial production.
The unit of production has been calculated based on the original equipment manufacturer’s warranted
minimum annual capacity, adjusted for management’s recent experience, and management’s
assessment of expected life. Any re-assessment of this lifetime capacity will affect the depreciation
rate prospectively.
Right-of-use assets
Assets and liabilities arising from a lease are initially measured at the present value of the lease
payments and payments to be made under reasonably certain extension options are also included in the
measurement of the liability. The lease payments are discounted using the interest rate implicit in the
lease or the incremental borrowing rate that the individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment
with similar terms, security and conditions.
Lease payments are allocated between principal, presented as a separate category within liabilities,
and finance cost. The finance cost is charged to the statement of comprehensive income over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for
each period. Right-of-use assets are measured at cost comprising the amount of the initial measurement
of lease liability, any lease payments made at or before the commencement date less any lease
incentives received and any initial direct costs. Depreciation is charged on a straight line basis over the
period of the lease and assets are subject to impairment reviews where circumstances indicate their
value may not be recoverable or if they are not being utilised.
98
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 99
NOTES TO THE FINANCIAL STATEMENTS continued
NOTES TO THE FINANCIAL STATEMENTS continued
1. Accounting policies continued
Profit/loss on disposal of property, plant and equipment and intangible assets
Profits and losses on the disposal of property, plant and equipment and intangible assets represent the
difference between the net proceeds and net book value at the date of sale. Disposals are accounted for
when the relevant transaction becomes unconditional.
Inventories
Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable
value. Cost comprises all costs of purchase, costs of conversion and an appropriate proportion of fixed
and variable overheads incurred in bringing the inventories to their present location and condition.
Net realisable value being the estimated selling price less costs to complete and sell. Where necessary,
provision is made to reduce cost to no more than net realisable value having regard to the nature and
condition of inventory, as well as its anticipated utilisation and saleability.
Tooling for resale – contract assets
Where a customer project or component is secured, the Group may be required to source and test
production tooling in advance of volume production. Tooling sourced for a customer is recognised at
cost and held as a contract asset in receivables when the Group has a documented commitment from
the customer and is valued at the lower of cost and net realisable value. The cost is expensed when the
revenue is recognised and where the Group has no customer commitment to meet the costs of tooling
production, the costs are expensed within cost of sales as incurred.
Research and development
An internally generated intangible asset arising from development (or the development phase) of an
internal project is recognised if, and only if, all of the following have been demonstrated:
• It is technically feasible to complete the development such that it will be available for use, sale or
licence;
• There is an intention to complete the development;
• The method by which probable future economic benefits will be generated is known;
• There are adequate technical, financial and other resources required to complete the
development and;
• There are reliable measures that can identify the expenditure directly attributable to the project
during its development.
The amount recognised is the expenditure incurred from the date when the project first meets
the recognition criteria listed above. Expenses capitalised consist of employee costs incurred on
development and an apportionment of appropriate overheads.
Where the above criteria are not met, development expenditure is charged to the consolidated income
statement in the period in which it is incurred. The expected life of internally generated intangible assets
varies based on the anticipated useful life, currently ranging from five to ten years.
Subsequent to initial recognition, internally generated intangible assets are reported at cost less
accumulated amortisation and impairment losses.
Amortisation is charged on a straight-line basis over the estimated period in which the intangible
asset has economic benefit from the commencement of related product sales and is reported within
administrative expenses in the consolidated statement of comprehensive income.
Research expenditure is recognised as an expense in the period in which it is incurred.
Revenue based grants
Revenue based grants, including those related to government coronavirus job and business support
schemes, are recognised as income based on the specific terms related to them as follows:
• A grant is recognised in other operating income when the grant proceeds are received (or receivable)
provided that the terms of the grant do not impose future performance-related conditions;
• If the terms of a grant do impose performance-related conditions then the grant is only recognised in
income when the performance-related conditions are met; and
• Any grants that are received before the revenue recognition criteria are met are recognised in the
statement of financial position as an other creditor within liabilities.
Capital grants
Grants received relating to tangible fixed assets are treated as deferred income and released to the
income statement over the expected useful lives of the assets concerned.
Foreign currencies
Transactions entered into by Group entities in a currency other than the currency of the primary
economic environment in which they operate (their ‘functional currency’) are recorded at the rates
ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at
the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled
monetary assets and liabilities are recognised immediately in the consolidated income statement.
Translation of the results of overseas businesses
The results of overseas subsidiaries and joint ventures are translated into the Group’s presentational
currency of sterling each month at the weighted average exchange rate for the month. The weighted
average exchange rate is used, as it is considered to approximate the actual exchange rates on the
date of the transactions. The assets and liabilities of such undertakings are translated at the year-end
exchange rate. Exchange differences arising on translating the opening net assets at opening rate and
the results of overseas operations at actual rate are recognised in other comprehensive income and
accumulated in a separate equity reserve.
Hire purchase liabilities
Hire purchase agreements where the Group has substantially all the risks and rewards of ownership and
retains the asset at the end of the payment term are classified as hire purchase liabilities within loans
and borrowings. Assets are capitalised at the agreement’s commencement at the lower of the fair value
of the related asset and the present value of the minimum lease payments.
Each payment is allocated between the liability and finance charges. The remaining future rental
obligations, net of finance charges, are included in hire purchase obligations in current or non-
current liabilities. The finance cost is charged to the income statement over the lease period so as to
produce a constant periodic rate of interest on the remaining balance of the liability for each period.
The property, plant and equipment acquired under hire purchase contracts is depreciated over the
useful life of the asset.
Borrowing costs
Borrowings are recognised initially at fair value, net of transaction costs incurred. They are subsequently
carried at amortised cost and the difference between the proceeds (net of transaction costs) and the
total redemption value is recognised in the income statement over the period of the borrowings using
the effective interest method.
100
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NOTES TO THE FINANCIAL STATEMENTS continued
NOTES TO THE FINANCIAL STATEMENTS continued
1. Accounting policies continued
Operating leases
From 1 October 2019 IFRS 16 was applied with additional right-of-use-assets and related liabilities
recognised as set out in the policy above. Payments associated with short-term leases of property,
plant and equipment and leases of low-value assets continue to be recognised on a straight-line basis
as an expense. Short-term leases are leases with a lease term of 12 months or less.
Employee benefit costs
The Group operates a defined contribution pension scheme. Contributions payable to the pension
scheme are charged to the consolidated statement of comprehensive income in the period to which
they relate.
Share based payment
The Group operates an equity-settled share based compensation plan in which the Group receives
services from directors and certain employees as consideration for share options. The fair value of the
services is recognised as an expense, determined by reference to the fair value of the options granted.
Invoice discounting
The Group has an agreement with HSBC whereby its trade receivables are discounted, with recourse
after 120 days. On the basis that the benefits and risks attaching to the debts remained with the Group,
the gross debts are included as an asset within trade receivables (net of any provisions and discounts)
and the proceeds received are included within current liabilities as short-term borrowings under invoice
discounting facilities. The net cash advances or repayments are presented as financing cash flows.
Charges and interest are recognised in the finance expense in the consolidated statement of
comprehensive income as they accrue.
Investments in subsidiaries
Investments in subsidiaries are stated at cost or at the fair value of shares issued as consideration less
provision for any impairment.
Investments in joint ventures
A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights
to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require unanimous consent of the parties sharing control.
The Group accounts for its interests in joint ventures using the equity method. Under the equity method,
an investment in a joint venture is initially recognised in the consolidated statement of financial
position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other
comprehensive income of the joint venture.
When the Group’s share of losses of a joint venture exceeds the Group’s interest in that joint venture
(which includes any long-term interests that, in substance, form part of the Group’s net investment in
the joint venture), the Group discontinues recognising its share of further losses, unless and only to the
extent that the Group has incurred legal or constructive obligations or made payments on behalf of the
joint venture for those losses.
Any premium paid for an investment in a joint venture above the fair value of the Group’s share of
the identifiable assets, liabilities and contingent liabilities acquired is capitalised and included in the
carrying amount of the investment in the joint venture. Where there is objective evidence that the
investment in a joint venture has been impaired the carrying amount of the investment is tested for
impairment in the same way as other non-financial assets.
Financial assets
The Group classifies its financial assets based upon the purpose for which the asset was acquired. The
Group has not classified any of its financial assets as held at fair value through profit and loss or through
other comprehensive income.
The classes of financial assets are commented upon further below:
(a) Receivables
These assets are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. They arise principally through the provision of goods to customers
(e.g. trade receivables and contract balances). They are initially recognised at fair value plus
transaction costs that are directly attributable to their acquisition or issue, and are subsequently
carried at amortised cost using the effective interest method.
The Group’s receivables comprise trade and other receivables included within the consolidated
statement of financial position.
The Group applies the simplified IFRS 9 approach and recognises loss allowances for expected credit
losses (ECLs) on financial assets measured at amortised cost to the extent that these are experienced
and significant for assets subject to similar credit risks and ageing. The group measures loss allowances
for trade receivables and contract assets at an amount equal to lifetime ECL and the expected loss
rates are based on a three year period adjusted where required for current and forward looking
information on the group’s customers. The potential default of receivables from other group companies
is measured using a 12-month ECL and assessment for any significant changes in risk related to changes
in underlying trading or prospects. The gross carrying amount of a financial asset is written off (either
partially or in full) against the allowance to the extent that there is no realistic prospect of recovery.
(b) Cash and cash equivalents
Cash and cash equivalents comprise cash held at bank which is available on demand.
Financial liabilities
The Group classifies its financial liabilities as other financial liabilities and does not enter into any
financial liabilities which are held at fair value through profit or loss or through other comprehensive
income. This reflects the purpose for which the liabilities were acquired.
Other financial liabilities comprise:
• Trade payables, amounts owed to equity accounted joint ventures, accruals and other creditors
are initially recognised at fair value, and subsequently carried at amortised cost using the effective
interest method.
• Bank loans, bank overdrafts, invoice discounting, lease liabilities and hire purchase agreements are
initially recognised at fair value net of any transaction costs directly attributable to the issue of the
instrument. Such interest bearing liabilities are subsequently measured at amortised cost ensuring
the interest (effective rate) element of the borrowing is expensed over the repayment period at a
constant rate.
Share capital
Financial instruments issued by the Group are treated as equity only to the extent that they do not meet
the definition of a financial liability. The Group’s ordinary shares are classified as equity instruments.
Dividends
Dividend distributions to the Group’s shareholders are recognised as a liability in the period in which the
dividend becomes a committed obligation.
Final dividends are recognised when they are approved by the shareholders. Interim dividends are
recognised when paid.
Taxation
Current taxes are based on the results and are calculated according to local tax rules, using tax rates
enacted or substantively enacted by the date of the statement of financial position.
102
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NOTES TO THE FINANCIAL STATEMENTS continued
NOTES TO THE FINANCIAL STATEMENTS continued
1. Accounting policies continued
Deferred taxation
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the
consolidated statement of financial position differs from its tax base, except for differences arising on:
• the initial recognition of goodwill;
• the initial recognition of an asset or liability in a transaction which is not a business combination and
at the time of the transaction affects neither accounting or taxable profit; and
• investments in subsidiaries and jointly controlled entities where the Group is able to control the
timing of the reversal of the difference and it is probable that the difference will not reverse in the
foreseeable future.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit
will be available against which the difference can be utilised.
The amount of the asset or liability is determined using tax rates that have been enacted or substantively
enacted by the date of the statement of financial position and are expected to apply when the deferred
tax liabilities or assets are settled or recovered. Deferred tax balances are not discounted.
Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset
current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the
same tax authority on either:
• the same taxable Group company; or
• different entities which intend either to settle current tax assets and liabilities on a net basis, or to
realise the assets and settle the liabilities simultaneously, in each future period in which significant
amounts of deferred tax assets and liabilities are expected to be settled or recovered.
Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision-maker. The chief operating decision maker has been identified as the
management team including the Chief Executive Officer, Chief Financial Officer and Chairman.
The Board considers that the Group’s activity constitutes one primary operating and one separable
reporting segment as defined under IFRS 8. Management consider the reportable segment to be
Automotive Noise, Vibration and Harshness (NVH). Revenue and profit before tax primarily arises from
the principal activity based in the UK. Management reviews the performance of the Group by reference
to total results against budget.
The total profit measure is operating profit as disclosed on the face of the consolidated income
statement. No differences exist between the basis of preparation of the performance measures used by
management and the figures in the Group financial statements.
2. Critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future. Estimates and judgements
are continually evaluated based on historical experience and other factors, including the expectations
of future events that are believed to be reasonable under the circumstances and any further evidence
that arises relevant to judgements taken. In the future, actual experience may differ from these
estimates and assumptions. The estimates and judgements that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed below.
Property, plant and equipment and right-of-use assets (Notes 11 and 12)
Judgement
Depreciation commences once an asset is considered to be capable of operating in the manner
intended and to the specification set by management when ordering the equipment. Judgement is
applied based on testing of the equipment and trial products which impacts the commencement and
charge in a period. Depreciation on right-of-use property assets commences from the start of the lease.
Estimates
Property, plant and equipment are depreciated over the estimated useful lives of the assets. Useful lives
are based on management’s estimates of the period that the assets will generate revenue, which are
reviewed annually for continued appropriateness and events which may cause the estimate to be revised.
The key areas of estimation uncertainty regarding depreciation is the use of the unit of production
method for the Neptune assets and the determination of the lifetime capacity; risk of obsolescence
from technological and regulatory changes; and required future capital expenditure (refurbishment or
replacement of key components). The lifetime capacity has initially been assessed using an assumed
2.7 million linear metres production per annum (based on a weighted average of the original equipment
manufacturer’s warranted minimum annual production capacity for each of three primary material grades
produced) and fifteen years use at full line speed when refurbishment and replacement of key components
would be considered likely. Management will continue to monitor the position for future periods.
In respect of right-of-use leased assets a key estimate is the incremental borrowing rate used to
discount the total cash flows and derive both the opening asset value and lease liability as well as the
consequential depreciation and financing charges. Assessment of the rate, particularly for property,
takes account of the group’s borrowing rates, financial position and factors specific to leases, including
property yields. If the rate applied had been 1% lower at 4%, it would have increased the transition asset
by £350,000, the transition liability by £280,000 and reduced the debit to retained earnings by £70,000.
The depreciation charge for the year ended 30 September 2021 would have been £35,000 higher and
financing charges £38,000 lower with a net £3,000 impact on the profit and loss account.
The carrying values are tested for impairment when there is an indication that the value of the assets
might not be realisable or impaired. When carrying out impairment tests these are based upon future cash
flow forecasts and these forecasts include management estimates for sales pricing and volumes informed
by external market forecasts and experience. Future events or changes in the market could cause the
assumptions to change, therefore this could have an adverse effect on the future results of the Group.
Other intangible assets (Note 13)
As set out in the policy in note 1, intangible assets acquired in a business combination are capitalised
and amortised over their estimated useful lives which may be impacted by future events.
Estimate
Both initial valuations and subsequent impairment tests for intangible assets are based on risk adjusted
future cash flows discounted using appropriate discount rates. These future cash flows will be based
on forecasts for the individual assets or, where the specific cash flows cannot be separately identified,
the CGU to which the assets are attributable which include estimated factors and are inherently
judgemental. Future events could cause the assumptions to change which could have an adverse effect
on the future results of the Group.
Judgement
The capitalisation of development costs is also subject to a degree of judgement in respect of the
viability of new products, supported by the results of testing and customer trials, and by forecasts for the
overall value and timing of sales which may be impacted by other future factors which could impact the
assumptions made.
Trade receivables (Note 15)
Estimate Trade receivables are initially recognised at invoiced value. Where specific amounts remain
outstanding or disputed beyond their agreed settlement date management, having reviewed all
commercial documentation, proof of delivery and credit risk of the customer, apply judgement as to
the likelihood of the future settlement. This judgement will be influenced by the passage of time, the
documentation available and previous experience of collection of past due invoices with that customer
and the Group’s customer base in general.
In addition, where the Group has historic experience of a rate of loss against a specific group of
receivables (or where circumstances are indicative of a likely future change in the rate of estimated loss)
then a change in that estimated loss rate would alter the impairment provision recognised.
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NOTES TO THE FINANCIAL STATEMENTS continued
NOTES TO THE FINANCIAL STATEMENTS continued
3. Financial instruments – risk management
The Board has overall responsibility for the determination of the Group’s risk management objectives
and policies. The overall objective of the Board is to set policies that seek to reduce risk as far as possible
without unduly affecting the Group’s competitiveness and flexibility. All funding requirements and
financial risks are managed based on policies and procedures adopted by the Board of Directors.
The Group is exposed to the following financial risks:
• Credit risk
• Liquidity risk
• Foreign exchange risk
• Interest rate risk
In common with all other businesses, the Group is exposed to risks that arise from its use of financial
instruments. The principal financial instruments used by the Group, from which financial instrument risk
arises, are as follows:
• Trade and other receivables
• Cash and cash equivalents
• Trade and other payables
• Fixed and floating rate bank loans
• Floating rate overdrafts
• Fixed rate hire purchase agreements
• Fixed rate lease liabilities
• Floating rate invoice discounting facilities
Group financial instruments by category
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial liabilities
Trade and other payables
Borrowings
Lease liabilities
Total financial liabilities
Financial assets
at amortised cost
2021
£000
1,262
2,793
4,055
2020
£000
2,974
4,078
7,052
Financial liabilities
at amortised cost
2021
£000
2,355
3,967
5,636
2020
£000
2,620
4,874
5,887
11,958
13,381
All financial instruments are carried at amortised cost and the carrying value of the Group’s financial
assets and liabilities is considered to approximate to their fair value at the current reporting date.
Cash and cash equivalents are held in Sterlng, Euro and Krona and placed on deposit in UK, German and
Swedish banks.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations. The Group is mainly exposed to credit risk from credit sales.
At 30 September 2021, the Group has net trade receivables of £2,640,000 (2020: £3,925,000).
The Group is exposed to credit risk in respect of these balances such that, if one or more customers
encounter financial difficulties, this could materially and adversely affect the Group’s financial results.
The Group attempts to mitigate credit risk by assessing the creditworthiness of customers and closely
monitoring payment history.
The ageing of debtors past due and not impaired is included in note 15. Having assessed the
recoverability of past due invoices, including consideration of time elapsed and associated commercial
documents, the directors have made provision, using the Expected Credit Loss methodology, of £48,000
at 30 September 2021 (2020: £144,000) for doubtful debts.
Credit risk on cash and cash equivalents is considered to be minimal as the counterparties are all
substantial banks with high credit ratings.
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the continued availability
of its other funding facilities. It is the risk that the Group will encounter difficulty in meeting its
financial obligations as they fall due. The Group actively manages its cash generation and maintains
sufficient cash holdings to cover its immediate obligations. Cash and cash equivalents at the year
end were £1.3 million (2020: £2.8 million). There was an unutilised invoice discounting facility at
30 September 2021 of up to £6.0 million subject to eligible receivables, and an unutilised £0.3 million
import loan facility (2020: £6.0 million discounting facility and £0.3 million import loan facility)
together with the existing undrawn hire purchase facilities of £0.4 million (2020: £0.4 million) for
capex. The parent company has drawn down on term loan facilities of £3.5 million in order to improve
the overall liquidity and has loaned this to subsidiary companies where required for their working
capital requirements.
The tables below set out the maturities of the Group’s financial liabilities, including interest payments as
at the year end dates:
At 30 September 2021
Overdrafts
Trade and other payables
Bank loans
Hire purchase liabilities
Lease liabilities
Total
At 30 September 2020
Overdrafts
Trade and other payables
Bank loans
Hire purchase liabilities
Lease liabilities
Total
Up to
1 year
£000
24
2,355
825
105
1,102
4,411
Up to
1 year
£000
154
2,620
835
167
1,192
4,968
1 to 2
years
£000
2 to 5
years
£000
Over 5
years
£000
1,015
2,312
105
962
2,082
1 to 2
years
£000
–
–
983
105
925
2,013
54
2,506
4,872
2 to 5
years
£000
–
–
2,574
87
2,106
4,767
125
–
2,192
2,317
Over 5
years
£000
–
–
572
–
2,993
3,565
Subsequent to the year end, the company has raised a further £3.0 million gross in an equity placing
and UK bank loan terms have been amended to defer repayments. The first two quarterly repayments
of £100,000 and half yearly repayment of £205,000 commencing in FY22 have been deferred to the final
repayment dates in 2026 and 2027.
106
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NOTES TO THE FINANCIAL STATEMENTS continued
NOTES TO THE FINANCIAL STATEMENTS continued
3. Financial instruments – risk management continued
Foreign exchange risk
Foreign exchange risk is the risk that movements in exchange rates adversely affect the profitability or
cash flows of the business.
The majority of the Group’s financial assets are held in Sterling but movements in the exchange rate of
the Euro, the US Dollar and the Swedish Krona against Sterling have an impact on both the result for
the year and equity. The Group considers its most significant exposure is to movements in the Euro,
although there are no material net foreign currency denominated assets/liabilities in the Group other
than the Swedish Krona denominated goodwill in respect of Autins AB at 30 September 2021.
Interest rate risk
The Group’s exposure to market risk for changes in interest rates relates primarily to cash and external
borrowings (including overdrafts and invoice discounting arrangements).
The Group is exposed to cash flow interest rate risk on its import and capital asset backed loans and on
the floating rate invoice discounting and overdrafts where the cost of borrowing in all cases is calculated
by a fixed margin over Bank of England base rate, ranging from 1.75% to 3.99%.
Overdrafts
CBIL term bank loan
Asset backed bank loans
Total floating rate debt
2021
£000
24
2020
£000
154
1,982
1,913
–
3
2,006
2,070
Borrowings under asset finance/hire purchase arrangements are at a fixed interest rate over their term,
a fixed rate of 7.5% applies to the £1.5 million MEIF growth funding loan and 1.03% to a German bank
loan of £0.3 million both advanced in the prior year. Lease liabilities have been derived by applying an
incremental borrowing rate of 5%.
The interest rates applicable to the fixed rate borrowings are equivalent to current market rates and
therefore there is no material difference between their carrying value and fair value.
All borrowing is approved by the Board of Directors to ensure that it is conducted at the most
competitive rates available to it.
The Group has not entered into interest rate derivatives to mitigate the interest rate risk and a 1%
increase in base rates would impact the annual results by approximately £20,000.
Capital management
The Group is financed by a mixture of equity, term loans and invoice discounting facilities as required for
working capital purposes and with hire purchase finance used for certain capital projects. The capital
comprises all components of equity which includes share capital, retained earnings and other reserves.
The Company’s and Group’s objectives when maintaining capital are to safeguard the entity’s ability to
continue as a going concern, so that it can continue to provide returns for shareholders and benefits for
other stakeholders; and to provide an adequate return to shareholders by pricing products and services
commensurately with the level of risk.
4. Revenue and segmental information
Revenue analysis
Revenue, recognised at a point in time, arises from:
Sales of components
Sales of tooling
2021
£000
2020
£000
23,084
20,192
347
1,325
23,431
21,517
Segmental information
The Group currently has one main reportable segment in each year, namely Automotive (NVH) which
involves provision of insulation materials to reduce noise, vibration and harshness to automotive
manufacturing. Turnover and operating profit are disclosed for other segments in aggregate, mainly
flooring sales together with Personal Protective Equipment (‘PPE’) in the prior year, as they individually
do not have a significant impact on the Group result. These segments have no material identifiable
assets or liabilities.
Factors that management used to identify the Group’s reportable segments
The Group’s reportable segments are strategic business units that offer different products and services.
Measurement of operating segment profit or loss
The accounting policies of the operating segments are the same as those described in the summary of
significant accounting policies.
The Group evaluates performance on the basis of operating profit/(loss). Automotive remained
the only significant segment in the year although there has been investment and costs incurred in
the development and commissioning of equipment which can manufacture both automotive and
other products.
The Group’s non-automotive revenues, including acoustic flooring and personal protective equipment
in FY20 are included within the others segment.
Segmental analysis for the year ended 30 September 2021
Group’s revenue per consolidated statement of comprehensive income
Depreciation
Amortisation
Segment operating (loss)/profit
Finance expense
Share of post-tax profit of equity accounted joint ventures
Group loss before tax
Additions to non-current assets
Reportable segment assets
Investment in joint ventures
Automotive
NVH
£000
18,659
1,613
235
(971)
Others
£000
4,772
–
47
281
1,140
24,991
–
–
2021
Total
£000
23,431
(690)
(542)
53
(1,179)
1,140
24,991
120
25,111
12,344
All working capital requirements are financed from existing cash and invoice discounting resources.
Reportable segment assets/total Group assets
The Company and Group sets the amount of capital it requires in proportion to risk. The Group manages
its capital structure and makes adjustments to it in the light of changes in economic conditions and
the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the
Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue
new shares, or sell assets to reduce debt.
Reportable segment liabilities/total Group liabilities
12,344
108
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Autins Group PLC Annual Report 2021 109
NOTES TO THE FINANCIAL STATEMENTS continued
4. Revenue and segmental information continued
Segmental analysis for the year ended 30 September 2020
Group’s revenue per consolidated statement of comprehensive income
Depreciation
Amortisation
Segment operating (loss)/profit
Finance expense
Share of post-tax profit of equity accounted joint ventures
Group loss before tax
Additions to non-current assets
Reportable segment assets
Investment in joint ventures
Reportable segment assets/total Group assets
Reportable segment liabilities/total Group liabilities
Automotive
NVH
£000
18,446
1,600
301
Others
£000
3,071
–
16
2020
Total
£000
21,517
(1,504)
212
(1,292)
(523)
55
(1,760)
279
27,805
147
27,952
14,103
–
–
–
–
279
27,805
14,103
Revenues from one UK customer in 2021 total £9,991,000 and £2,968,000 of revenue arose from another
European customer (2020: one customer £10,895,000). This largest customer purchases goods from
Autins Limited in the United Kingdom and there are no other customers which account for more than
10% of total revenue.
External revenues by location of customers
United Kingdom
Sweden
Germany
Other European
Rest of the World
2021
£000
2020
£000
13,680
16,063
680
6,753
2,318
–
322
3,197
1,913
22
23,431
21,517
The only material non-current assets in any location outside of the United Kingdom are £900,000
(2020: £899,000) of fixed assets and £540,000 (2020: £551,000) of goodwill in respect of the Swedish
subsidiary. £233,000 (2020: £775,000) of cash balances were held in Germany which has been partly
utilised to repay intercompany debt owed to a UK group company.
5. Loss from operations
The operating loss is stated after charging/(crediting):
NOTES TO THE FINANCIAL STATEMENTS continued
Foreign exchange losses
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
Amortisation of intangible assets
Cost of inventory sold
Impairment of trade receivables
Government job retention scheme income
Other government assistance and grants
Employee benefit expenses (see note 6)
Lease payments (short term leases only)
Auditors’ remuneration:
Fees for audit of the Group
Exceptional inventory provisions
Exceptional restructuring costs in respect of:
Restructuring programme, inc severance costs
Change of Chief Financial Officer
2021
£000
105
788
825
282
2020
£000
11
836
851
317
15,663
14,573
(83)
(649)
–
6,499
109
90
–
–
–
–
17
(672)
(115)
6,822
120
85
164
132
160
292
Prior year exceptional costs
Overhead and operational restructuring programme
Following a detailed operational review initiated by the change of Chief Financial Officer and in
preparation for the rationalisation of the UK premises, the Group reviewed its inventory and identified
£164,000, primarily in respect of materials that were being held for development or aftermarket service
purposes, which are to be scrapped to allow floor space rationalisation and an associated reduction in
future premises costs.
The Group also incurred exceptional administrative costs of £160,000 in the year in respect of the change
of CFO, including recruitment fees and compensation costs. As part of the operational review initiated
by the new CFO and in response to Covid, which necessitated further operational changes and cost
reductions, the Group incurred a further £132,000 of severance related costs.
110
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 111
NOTES TO THE FINANCIAL STATEMENTS continued
NOTES TO THE FINANCIAL STATEMENTS continued
6. Staff costs
Wages and salaries
Social security costs
Share based payments
Other pension costs
Group
Company
2021
£000
2020
£000
5,574
5,932
767
–
158
754
(15)
151
2021
£000
1,271
161
–
45
2020
£000
1,287
148
(15)
44
6,499
6,822
1,477
1,464
The average monthly number of employees during each year was as follows:
Directors
Administrative and development
Production
2021
Number
2020
Number
2021
Number
2020
Number
4
53
125
182
5
60
147
212
4
13
–
17
5
13
–
18
Group key personnel are considered to be the directors and senior management team of Autins Group
plc and Autins Limited which is the largest trading entity in the Group. The remuneration of Group key
personnel is disclosed in note 24.
7. Directors remuneration
Year ended 30 September 2021
A Attwood
G Kaminski-Cook
K Munir
I Griffiths (resigned 12 March 2021)
N MacDonald
Salary
£000
Benefits
£000
Pension
£000
60
240
187
20
45
552
–
22
4
–
–
26
–
24
16
–
–
40
The remuneration above includes £53,000 of salary where payment has been deferred.
Year ended 30 September 2020
A Attwood
G Kaminski-Cook
K Munir
J Larner
I Griffiths
N MacDonald
8. Finance expense
Bank interest
Amortisation of loan issue costs
Right-of-use asset financing charges
Interest element of hire purchase agreements
Salary
£000
Benefits
£000
Pension
£000
Compensation
£000
54
230
116
41
41
41
523
–
25
4
4
–
–
33
–
10
10
3
–
–
23
–
–
–
105
–
–
105
2021
£000
236
14
270
22
542
Total
£000
60
286
207
20
45
618
Total
£000
54
265
130
153
41
41
684
2020
£000
180
7
305
31
523
9. Income tax
(i) Tax credit in income statement excluding share of tax of equity accounted for joint ventures
Current tax expense
Current tax on loss for the period
Prior year adjustments
Total current tax
Deferred tax credit
Origination and reversal of timing differences
Prior year adjustments
Total deferred tax
Total tax credit
(ii) Total tax credit
Tax credit excluding share of tax of equity accounted for joint ventures
(as stated above)
Share of tax (credit)/expense of equity accounted joint ventures
(2021: including £19,000 prior year adjustment)
2021
£000
2020
£000
29
(150)
(121)
22
4
26
(95)
2021
£000
(95)
(3)
(98)
–
–
–
(37)
(37)
(37)
2020
£000
(37)
16
(21)
No tax arises in respect of other comprehensive income.
The reasons for the difference between the actual tax charge for the year and the standard rate of
corporation tax in the United Kingdom applied to the loss for the year are as follows:
Loss for the year
Income tax credit (including tax on joint ventures)
Loss before income taxes
Expected tax credit based on corporation tax rate of 19% in 2021 (2020: 19%)
Expenses not deductible for tax purposes
Enhanced R&D tax relief
Impact of different tax rates
Tax losses not recognised
Prior year adjustments
Total tax including joint ventures
2021
£000
2020
£000
(1,079)
(1,723)
(99)
(21)
(1,178)
(1,744)
(224)
(331)
17
(19)
36
257
(165)
(98)
3
(19)
63
263
–
(21)
In March 2020, the Finance Bill 2020 was substantively enacted which maintained the corporation
tax rate at 19% and in May 2021 the rate was increased to 25% in the Finance Bill 2021, effective from
April 2023. Deferred taxes at the balance sheet date have been measured using the enacted tax rates and
the expected timing of reversals. The rate of 19% is accordingly applied to UK deferred taxation balances
at 30 September 2021 (2020: 19%).
The current rate of corporation tax in Sweden is 21.4% and the current rate of corporation tax in
Germany is 30–33%. The Group’s Swedish subsidiary did not have taxable profits during the years under
review and the German subsidiary profits are partly offset by losses brought forward.
112
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 113
NOTES TO THE FINANCIAL STATEMENTS continued
10. Earnings per share
Loss used in calculating basic and diluted EPS
Number of shares
Weighted average number of £0.02 shares for the purpose of basic earnings
per share (‘000s)
Weighted average number of £0.02 shares for the purpose of diluted earnings
per share (‘000s)
Earnings per share (pence)
Diluted earnings per share (pence)
2021
£000
2020
£000
(1,084)
(1,723)
39,601
39,601
39,601
39,601
(2.74)p
(2.74)p
(4.35)p
(4.35)p
Earnings per share have been calculated based on the share capital of Autins Group plc and the earnings
of the Group for both years. There are options in place over 2,523,648 (2020: 524,204) shares that were
anti-dilutive at the year end but which may dilute future earnings per share.
11. Property, plant and equipment
Plant and
machinery
£000
Leasehold
improvements
£000
Fixtures and
fittings
£000
Total
£000
Group
COST
At 1 October 2019
Additions
Foreign exchange movement
At 30 September 2020
Additions
Foreign exchange movement
Disposals
At 30 September 2021
DEPRECIATION
At 1 October 2019
Charge for year
Foreign exchange movement
At 30 September 2020
Charge for year
Foreign exchange movement
Disposals
At 30 September 2021
NET BOOK VALUE
At 30 September 2021
At 30 September 2020
At 30 September 2019
13,450
144
56
13,650
398
(56)
(77)
13,915
3,194
778
19
3,991
740
(26)
(44)
4,661
9,254
9,659
10,256
178
3
–
181
1
–
(11)
171
44
12
–
56
12
–
(11)
57
114
125
134
565
14,193
7
–
154
56
572
14,403
6
–
(7)
405
(56)
(95)
571
14,657
228
46
–
274
36
–
(7)
3,466
836
19
4,321
788
(26)
(62)
303
5,021
268
298
337
9,636
10,082
10,727
Plant and
Machinery
£000
386
612
Net book value of assets held under hire purchase contracts are as follows:
At 30 September 2021
At 30 September 2020
Depreciation of £56,000 was charged on these assets in the year (2020: £55,000).
NOTES TO THE FINANCIAL STATEMENTS continued
The Neptune plant and equipment represents £4.8 million (2020: £5.0 million) of the net book value.
The Directors, having prepared both a discounted cash flow assessment for the NVH segment within
which the goodwill is allocated (note13) and the Neptune facility as a standalone cash generating unit,
are satisfied that the carrying values remain appropriate. Whilst losses continued in the current year,
with results materially impacted by the Covid pandemic and the associated global semiconductor
supply disruption, these were reduced and £2.6 million of revenue was earned in this unpredictable
economic environment. The cost actions already taken and prevailing margins mean that the overall
carrying value of the Neptune plant and equipment is supported at an annual revenue level of £4.0
million, with our current annualised sales volumes already at a value of £6 million. Latest sales enquiry
levels and actual conversion into orders indicate that even a slow recovery provides opportunities to
exceed £5.0 million sales per annum. Accordingly, the achievement of profitable trading is expected in
the foreseeable future.
The Company has fixed assets with a cost from additions to office equipment of £3,000 in the year, less
£1,000 of depreciation and a net book value of £2,000.
12. Right-of-use assets
The right-of-use assets are as follows:
Group
At 1 October 2020
Additions
Foreign exchange movements
Depreciation charge for the year
At 30 September 2021
Group
On transition at 1 October 2019
Foreign exchange movements
Depreciation charge for the year
At 30 September 2020
The lease liabilities relating to these are:
Group
At 1 October 2020
Additions
Foreign exchange movements
Lease payments
Financing charge for the year
At 30 September 2021
Current
Non-current
Group
On transition at 1 October 2019
Foreign exchange movements
Lease payments
Financing charge for the year
At 30 September 2020
Current
Non-current
Property
£’000
4,888
612
(5)
(727)
4,768
Property
£’000
5,651
14
(777)
4,888
Plant and
machinery
£’000
113
93
–
(98)
108
Plant and
machinery
£’000
187
–
(74)
113
Total
£’000
5,001
705
(5)
(825)
4,876
Total
£’000
5,838
14
(851)
5,001
£000
5,887
705
(5)
(1,221)
270
5,636
842
4,794
£000
6,422
14
(854)
305
5,887
917
4,970
114
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 115
NOTES TO THE FINANCIAL STATEMENTS continued
NOTES TO THE FINANCIAL STATEMENTS continued
13. Intangible assets
Group
COST
At 1 October 2019
Additions
Foreign currency differences
At 30 September 2020
Additions
Foreign currency differences
At 30 September 2021
AMORTISATION AND IMPAIRMENT
At 1 October 2019
Charge for the year
At 30 September 2020
Charge for the year
At 30 September 2021
NET BOOK VALUE
At 30 September 2021
At 30 September 2020
At 30 September 2019
Goodwill
£000
Development
costs
£000
Customer
relationships
£000
Tooling
intellectual
property
£000
Total
£000
2,196
–
21
2,217
–
(11)
814
125
–
939
30
1,079
830
4,919
–
–
–
–
125
21
1,079
830
5,065
–
–
–
–
30
(11)
2,206
969
1,079
830
5,084
–
–
–
–
–
2,206
2,217
2,196
142
79
221
109
330
639
718
672
834
155
989
90
1,079
–
90
245
450
83
533
83
616
214
297
380
1,426
317
1,743
282
2,025
3,059
3,322
3,493
The Group tests goodwill for impairment annually or where there is an indication that goodwill might be
impaired. The Directors have, in considering impairment of goodwill, reviewed the operating activities
and structure of the Group and considers the goodwill is attributable to a single cash generating unit
related to the existing established products of the automotive NVH segment.
The recoverable amount of that cash generating unit has been determined on a value-in-use basis.
Value-in-use calculations for the cash generating unit are based on projected three-year (2020:
three-year) discounted cash flows, together with a terminal value which assumes a 1% (2020: 1%) long
term growth rate. The cash flows have been discounted at pre-tax rates of 11.0% (2020: 11.2%) reflecting
the Group’s weighted average cost of capital adjusted for country-specific tax rates and risks.
Whilst acknowledging the loss in the current year, the Directors have reviewed a range of reasonably
foreseeable trading forecasts for future periods, as described further under “going concern” in note 1.
The key assumption which underpins these forecasts relates to the rate of revenue growth and reflects
trading experience, as adjusted for the expected recovery from global pandemic effects. Prior to Covid
pandemic effects, we had secured new contracts with strong growth potential, and we have continued
to reduce the cost base, and improve operational efficiency over the last 2 years. Revenue had shown
some recovery in the first half of FY21 as lockdown initially eased, before being materially impacted
by the semiconductor shortage in the automotive industry. Revenue, supported by demand for new
vehicles, is expected to show some initial recovery in FY22 and continue improving into FY23, aided
by the continued diversification of the customer base and product range, a return to profitability and
cash generation is expected in the foreseeable future. Recurring revenues from automotive NVH need
to recover to a level of some £28 million a year, lower than is budgeted, in order to support the carrying
value of the goodwill. These revenues were at £25 million in FY19 including the impact of shut down
periods at the major customer and £27 million in FY18. The key sensitivity in the forecasts is the level of
revenue. A 15% fall in revenue would reduce the headroom from £5.5 million to £1.9 million.
The Company had a closing net book value of £50,000 (2020: £50,000) for goodwill and £7,000
(2020: £7,000) for development costs in intangible assets.
14. Fixed asset investments
Company
COST AND NET BOOK VALUE
At 30 September 2020 and 2021
Investments in
subsidiaries
£000
16,239
The Directors have considered the carrying value of the investments and consider that this remains
supported by the projections and impairment tests referred to in notes 11 and 13 in respect of the
trading prospects and value in use of the subsidiaries.
The subsidiaries of the Company, which have all been included in the consolidated financial statements
based on their results to 30 September 2021, are as follows:
Name
UK subsidiaries:
Autins Limited
Principal activity
Supply of insulating materials
Automotive Insulations Limited
Dormant
Solar Nonwovens Limited
Supply of insulating materials
Autins Technical Centre Limited
Development of insulating materials
Acoustic Insulations Limited
Dormant
European subsidiaries:
Autins GmbH
Autins AB
DBX Acoustics AB
Supply of insulating materials
Supply of insulating materials
Supply of insulating materials
30 Sept 2021
and 2020
Ownership %
100
100
100
100
100
100
100
100
The Group has agreed to guarantee the liabilities of Solar Nonwovens Limited and Autins Technical
Centre Limited, thereby allowing these companies to take the exemption from an audit under
Section 479A of the Companies Act 2006.
All UK companies are incorporated in England with a registered office at Central Point One, Central Park
Drive, Rugby, Warwickshire, CV23 0WE.
Autins AB and DBX Acoustics AB operate in and are incorporated in Sweden with a registered office at
Hamneviksvägen 12, SE-418 79 Gothenburg. Autins GmbH operates in and is incorporated in Germany
with a registered office at Hilden Amtsgericht, Düsseldorf HRB 70344. They are held by Autins Limited.
Interests in joint ventures comprise the following:
Name
Principal activity
Indica Automotive Limited
Supply of insulating materials
30 Sept 2021
and 2020
Ownership %
50
The joint venture is incorporated in England with a registered office at Central Point One, Central Park
Drive, Rugby, Warwickshire, CV23 0WE. The group has a 50% shareholding and joint management is
exercised through the right to appoint two of the four directors.
116
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 117
NOTES TO THE FINANCIAL STATEMENTS continued
14. Fixed asset investments continued
Group
COST AND NET BOOK VALUE
At 30 September 2019
Share of profit for the year
Dividend paid by JV
Net book value at 30 September 2020
Share of profit for the year
Dividend paid by JV
Net book value at 30 September 2021
The Group’s share of joint venture profit in each year was as follows:
Profit before tax
Taxation
Profit after tax
2021
£000
50
3
53
Summarised aggregated financial information in relation to the joint ventures is presented below
and includes the impact of IFRS16 transition in 2020 with the addition of right-of-use assets and
lease liabilities:
As at 30 September
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Included in the above amounts are:
Cash and cash equivalents
Current financial liabilities (excluding trade payables)
Non-current financial liabilities (excluding trade payables)
Net assets (100%)
Group share of net assets
Year ended 30 September
Revenues
Profit after tax
Total comprehensive income (100%)
Group share of total comprehensive income
Included in the above amounts are:
Depreciation and amortisation
Right-of-use asset depreciation
Interest expense
Income tax (credit)/expense
Interest in
joint ventures
£000
217
55
(125)
147
53
(80)
120
2020
£000
71
(16)
55
2020
£000
1,097
335
(653)
(485)
373
(352)
(475)
294
147
2021
£000
893
317
(445)
(525)
405
(84)
(517)
240
120
2021
£000
2020
£000
2,402
2,104
106
106
53
18
81
20
(3)
110
110
55
38
81
16
30
15. Inventories
Group
Raw materials
Work in progress
Finished goods
NOTES TO THE FINANCIAL STATEMENTS continued
2021
£000
2020
£000
1,985
1,525
77
371
47
366
2,433
1,938
Inventory is stated net of impairment provisions of £125,000 (2020: £331,000). The Company has
no inventories.
16. Trade and other receivables
Trade receivables
Provisions for impairment
Trade receivables net
Amounts owed by subsidiaries undertakings
Amount owed by equity-accounted joint venture
controlled entities
Tooling contract balances
Other receivables
Total financial assets other than cash and cash
equivalents classified as loans and receivables
Corporation tax debtor
Other receivables
Prepayments
Total trade and other receivables
The analysis of trade receivables is as follows:
Not yet due gross amount
Past due gross amount
Past due impairment loss allowance
Group
2021
£000
2,688
(48)
2,640
–
96
–
57
Group
2020
£000
4,069
(144)
3,925
Company
2021
£000
Company
2020
£000
–
–
–
–
–
–
–
9,158
10,012
10
53
90
45
14
10
–
–
2,793
4,078
9,217
10,022
87
485
265
3,630
29
–
232
4,339
–
–
142
–
––
9
9,359
10,031
2,549
3,852
139
(48)
217
(144)
2,640
3,925
–
–
–
–
–
–
–
–
With the exception of one customer which accounts for 44% (2020: 53%) of the net trade receivable
balance at the year end, credit risk with respect to accounts receivable is dispersed due to the number of
customers. An impairment allowance of £86,000 has been reversed and credited (2020: £17,000 charged)
in respect of specific trade receivables for the year ended 30 September 2021. The expected credit loss in
respect of debt not due and past due is otherwise considered immaterial.
The Group has financing agreements whereby certain trade debts can be subject to an invoice
discounting agreement which is secured against the associated trade receivables. The amounts
outstanding at 30 September 2021 were £nil (2020: £nil).
The movement in the provision for trade receivables is as follows:
Group
At 1 October
(Credited)/charged in year
Receivables written off in year
At 30 September
2021
£000
144
(86)
(10)
48
2020
£000
218
17
(91)
144
118
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 119
NOTES TO THE FINANCIAL STATEMENTS continued
16. Trade and other receivables continued
The movement in the tooling contract assets balances are as follows:
Brought forward at 1 October
Additions during the year
Recognised as cost of sales in the year
Assets as at 30 September
Revenue yet to be recognised on tooling contract balances
17. Trade and other payables
2021
£’000
53
183
2020
£’000
276
790
(236)
(1,013)
–
–
53
68
Current
Trade payables
Amounts owed to subsidiaries
Amount owed to equity-accounted joint venture
controlled entities
Accruals
Total financial liabilities, excluding loans borrowings,
classified as financial liabilities measured at amortised cost
Corporation tax payable
Social security and other taxes
Deferred income
Group
2021
£000
Group
2020
£000
Company
2021
£000
Company
2020
£000
1,263
1,366
–
410
844
216
876
181
7,841
–
281
166
7,850
–
203
2,355
2,620
8,303
8,219
29
194
6
–
525
6
–
51
–
170
–
Total current trade and other payables
2,584
3,151
8,354
8,389
Non-current liabilities
Deferred income
111
117
–
–
No interest is payable on the amounts owed to the company or by the company to its subsidiaries.
18. Borrowings
Bank loans and overdrafts
Unamortised issue costs
Hire purchase liabilities
Total borrowings
Bank overdrafts
Bank loans
Hire purchase liabilities
Current
Bank loans – instalments due in 2 to 5 years
Bank loans – instalments due in more than 5 years
Hire purchase liabilities due in 2 to 5 years
Group
2021
£000
3,783
(45)
229
Group
2020
£000
4,596
(59)
337
Company
2021
£000
Company
2020
£000
3,500
4,166
(45)
–
(59)
–
3,967
4,874
3,455
4,107
24
608
87
719
3,106
–
142
154
732
141
1,027
3,090
562
196
–
600
–
600
–
729
–
729
2,855
2,978
–
–
400
–
Non-current
3,248
3,847
2,855
3,378
Bank loans and overdrafts are secured by fixed and floating charges over the Group’s assets.
NOTES TO THE FINANCIAL STATEMENTS continued
Principal terms and the debt repayment schedule of the Group’s bank borrowings are as follows:
Nominal
Currency
Conditions
Bank term CBIL
MEIF term loan
GBP Secured Repayable by quarterly instalments
GBP Secured Repayable by instalments
German bank loan
Euro
Repayable by instalments
Rate %
Year of
Maturity
Base rate +
3.99%
7.50% fixed rate
1.03% fixed rate
2026
2024
2030
The CBIL loan terms include no interest being payable for a year as part of the government assistance.
This is recognised in other income with the loans stated net of this amount at draw down and a financing
charge made in the income statement over the first year.
Net obligations under hire purchase contracts are denominated in sterling and secured on the assets to
which they relate.
Details of financing facilities are also included in note 3, liquidity risk.
Subsequent to the year end, the company has raised a further £3.0 million gross in an equity placing,
and UK bank loan terms have been amended to defer repayments. The first two quarterly CBILS
repayments of £100,000 and half yearly MEIF loan repayment of £205,000 commencing in FY22 have
been deferred to the final repayment dates in 2026 and 2027.
Hire purchase liabilities
The future minimum lease payments in respect of hire purchase liabilities are as follows:
Group
Less than one year
Between one and five years
Total gross payments
Less: interest charge allocated to future periods
Carrying amount of liability
2021
£000
105
160
265
(36)
229
19. Deferred tax
Deferred tax is calculated in full on temporary differences under the liability method using a tax
rate of 19% (2020:19%) for the UK, 21% (2020: 21%) for Sweden and 30% for Germany (2020: 30%).
The movement on the deferred tax account is as shown below:
Opening net asset
Total credit recognised in profit and loss
Closing net balance
2021
£000
(75)
26
(49)
2020
£000
167
192
359
(22)
337
2020
£000
(38)
(37)
(75)
120
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 121
NOTES TO THE FINANCIAL STATEMENTS continued
19. Deferred tax continued
Group
Details of the deferred tax (asset) and liability are as follows:
Deferred tax (asset)
Accelerated capital allowances
Losses
Other temporary differences
Closing asset
Deferred tax liability
Deferred tax on intangible assets
Closing liability
2021
£000
2020
£000
612
(745)
38
(95)
46
46
460
(709)
100
(149)
74
74
The Group’s deferred tax balances have arisen primarily due to the timing differences on accelerated
capital allowances, recognition of intangible assets on acquisition or development costs and tax losses
carried forward.
The Company deferred tax asset recognised is £nil (2020: £nil). The company has an unrecognised
deferred tax asset of approximately £755,000 (2020: £540,000) in respect of losses carried forward.
The Group has an unrecognised deferred tax asset of approximately £980,000 at 30 September 2021
(2020: £800,000) in respect of losses carried forward as it is, as yet, uncertain when these will be utilised.
Group tax losses have been recognised where there is capacity to utilise them against specific group or
joint venture profits or where budgets and forecasts indicate that they can be used to offset overseas
trading profits within the next two years, supported by the trend in trading results and order books in
these entities.
20. Share capital
Allotted, issued and fully paid ordinary shares of £0.02 each
At 30 September 2020 and 2021
Number
39,600,984
£’000
792
21. Share based payment (company and group)
Share options are granted to directors and selected employees. All options granted in prior years have
now lapsed.
2,858,107 share options were granted in January 2021 with an effective nil cost exercise price. These are
exercisable in 3 tranches subject to meeting EBITDA targets for the 3 years ending 30 September 2023
and with 1,587,837 of them also dependent on growth in the share price. The fair value of the options
issued was primarily determined using a Black Scholes model and was calculated at 20p pence per
share option for the EBITDA performance only options and 15p per share option for those subject to
both conditions.
334,459 options lapsed prior to the year end and at 30 September 2021 following difficult trading
conditions through 2021, no options are currently expected to vest. The cumulative share based
payment charge is therefore nil.
There were 2,523,648 of unexpired options in place at 30 September 2021 with an average exercise price
of £nil (2020: 524,204 and £0.22) and a remaining average exercise period of 3 years (2020: 5.3 years).
NOTES TO THE FINANCIAL STATEMENTS continued
22. Reserves
Retained earnings are the cumulative net profits in the consolidated statement of comprehensive
income. Movements on these reserves are set out in the consolidated statement of changes in equity.
The cumulative currency differences reserve represents translation differences in respect of the net
assets of overseas subsidiaries.
Other reserves of £1,391,000 arose from the difference between the fair value and nominal value of
shares issued in partial satisfaction of the acquisition of 100% of the equity of Autins Limited (formerly
Automotive Insulations Limited) in April 2014 and £495,000 from the difference between the fair value of
shares issued and the existing cost of investment in order to acquire the remaining 50% of Autins AB and
10% of Autins Gmbh in April 2016.
The share premium account represents the amount by which the issue price of shares exceeds the nominal
value of the shares less any share issue expenses. A share premium of £3,150,000 arose on the shares
issued in the prior year and £205,000 of issue expenses were deducted from this balance. A further £17,000
of late costs relating to these shares was deducted from this account in the current year.
23. Commitments
The Group leases all its office and manufacturing properties as well as a number of vehicles and
forklifts used by the business. The lease terms vary from 3 years for vehicles, property rentals with an
annual rolling renewal for certain overseas properties through to 15 year terms for the principal UK
manufacturing sites, which are subject to three yearly rent reviews.
The Group had capital commitments at 30 September 2021 of £nil (2020: £nil).
The Company had no lease or capital commitments.
24. Related party transactions
Share options
Directors and other key management members hold the following unexpired share options (see note 20)
which are all subject to meeting EPS targets.
At 30 September 2021
G Kaminski-Cook
K Munir
At 30 September 2020
G Kaminski-Cook
Other senior management
Number
1,459,459
1,064,189
2,523,648
Number
279,070
215,967
495,037
122
Autins Group PLC Annual Report 2021
Autins Group PLC Annual Report 2021 123
NOTES TO THE FINANCIAL STATEMENTS continued
DIRECTORS, SECRETARY, REGISTERED OFFICE AND ADVISORS
24. Related party transactions continued
Transactions with related parties and key management personnel
Group key management personnel costs
Group aggregate salaries and short term benefits
Post employment benefits
Share based payments
2021
£000
2020
£000
1,335
1,516
37
–
40
(15)
1,372
1,541
Indica Automotive Limited is a joint venture undertaking in which the Group has joint control.
Transactions:
Sales and costs recharged to joint venture
Purchases from joint venture
Balance at the year end owed to the Group
Balance at the year end (owed by) the Group
25. Control
In the opinion of the Directors there is no one ultimate controlling party.
2021
£000
2020
£000
177
1,895
96
(216)
86
1,775
10
(420)
Directors
Adam Attwood, Non-Executive Chairman
Ian Griffiths, Non-Executive Director
(resigned 12 March 2021)
Gareth Kaminski-Cook, Chief Executive Officer
Neil MacDonald, Non-Executive Director
Kamran Munir, Chief Financial Officer
Company Secretary
Kamran Munir
Registered Office
Telephone Number
Website
Nominated Advisor and Broker
Solicitors to the Company
Auditors
Public Relations
Registrars
Central Point One
Central Park Drive
Rugby
Warwickshire
CV23 0WE
+44(0)1788 578 300
www.autins.com
Singer Capital Markets
1 Bartholomew Lane
London
EC2N 2AX
Freeths LLP
1 Vine Street
Mayfair
London
W1J 0AH
BDO LLP
Two Snowhill
Birmingham
B4 6GA
Newgate Communications
50 Basinghall Street
London
EC2V 5DE
Link Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
124
Autins Group PLC Annual Report 2021
Design and production: Navig8 www.navig8.co.uk
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Autins Group plc
Central Point One
Central Park Drive
Rugby
Warwickshire
CV23 0WE
+44 (0)1788 578 300
www.autins.com
Autins Group PLC Annual Report 2021 126