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Automotive supplier Autins Group swung to a first-half loss and warned that margin recovery would be slower than initially anticipated as cancelled orders and plant shutdowns continued to weigh on performance.
For the six months ended 31 March, the company reported a pre-tax loss of £0.98m compared with a profit of £54,000 a year earlier.
The loss comes as the automotive industry continued to experience challenging trading conditions due to a combination of factors, including OEM factory shutdowns due to Brexit, uncertainty over the future of diesel engine vehicles and a sharp decline in global demand, especially in China, the company said,.
This company said it expected that margins would increase at a slower pace in the second half of the year than initially anticipated due to the 'challenging market conditions.'
The company decided against paying an interim dividend. 'The Board continues to believe that during the current period of general market uncertainty a suspension in dividend payments remains appropriate,' the company said.
Looking ahead, the company said operational efficiencies and cost mitigation measures remained a key priority for the financial year and beyond.
'The Board anticipates that margin improvement will continue, albeit at a slower pace in H2 than initially anticipated due to the challenging market conditions and despite the actions taken by the Group in the year to date,' Autins said.
'The Board anticipates that the Group's EBITDA, as a result of the delay in margin recovery, will be close to break-even for the full year.'
At 8:08am: (LON:AUTG) Autins Group Plc share price was -2p at 26p