Sale of Interest in Joint Venture
29 September 2023
Autins Group plc
("Autins" the "Company" or the "Group")
Sale of Interest in Joint Venture
Autins Group plc (AIM: AUTG), the UK and European based manufacturer of the patented Neptune melt-blown material and specialist in the design, manufacture, and supply of acoustic and thermal insulation solutions, is pleased to announce that it has restructured its approach to sourcing of foam products in the UK and as a result has sold its 50 per cent. interest in its joint venture, Indica Automotive Limited (the "Sale"), for a cash consideration of £300,000.
The Board believes the Sale to Autins JV partner Indica Industries PV ("JV Partner") represents a positive outcome for all parties, as the foam business is core to the JV Partner who will continue to supply and it allows Autins to release cash from this investment. Furthermore, a revised purchasing agreement provides surety on terms and conditions and product supply for existing fixed life programmes, whilst creating more optionality for future sourcing of products and solutions development. Indica Industries is headquartered in India and had a net worth of INR 2.6bn as at 31 March 2022. Autins currently remains Indica Automotive's most significant customer. The proceeds of the Sale will be used within the Group's general working capital and growth plan requirements.
Indica Automotive's operating loss for FY22 was £54,000 and Autins recorded a loss of £26,000 in FY22 in respect of its share of post-tax loss of Indica Automotive. Indica Automotive's reduced financial performance against prior profitable years reflected the volume impact of the semi-conductor supply constraints reducing end customer demand and some significant stock write-offs. In FY23 Indica's unaudited year to date financial statements show marginally positive profit before tax, and as at 31 March 2023, Autins investment in Indica Automotive was valued at £68,000, accordingly Autins will record a material profit from the Sale.
For further information please contact:
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Autins Group plc Gareth Kaminski-Cook, Chief Executive Kamran Munir, CFO
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Via SEC Newgate |
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Singer Capital Markets (Nominated Adviser and Broker) James Moat / Asha Chotai
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Tel: 020 7496 3000 |
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SEC Newgate (Financial PR) Bob Huxford / Molly Gretton
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Tel: 020 7653 9850
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About Autins
Autins is a UK and continental Europe based industrial materials technology business that specialises in the design, manufacture, and supply of acoustic and thermal products. Its key markets are automotive, flooring, and commercial vehicles where it supplies products and services to more than 160 customer locations across Europe.
Autins is the UK and European manufacturer of the patented Neptune melt-blown material and specialises in the design, manufacture, and supply of acoustic and thermal insulation solutions.
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