CEO Jim Griffins resigned with immediate effect, whilst a major contract revision hit revenues
Companies: Autins Group Plc
Shares in AIM-listed Autins Group fell more than 35% shortly after the markets opened on Wednesday, after the company announced that CEO Jim Griffin was resigning and told investors that it expected FY17 revenues to be "materially lower" than previously expected.
Unfortunately, the Group did not quantify the extent of the impact, so it is unsurprising to see the severe market reaction.
The Group's prelims for the year ending 30 September, due 7 March, are unchanged and in-line with expectations, whilst sales for Q1 of the financial year are also in-line.
However, a major Autins customer has recently revised its contract and as a result, revenues for the 2017 financial year will be "materially" lower than the market expects:
"The Board is currently evaluating the likely impact on the year to 30 September 2018 and will provide guidance at the time of the publication of the preliminary results for 2016."
Meanwhile, CEO Jim Griffin has resigned as CEO, and from the Board, with immediate effect for personal reasons, adding to today's unfortunate news. Mr Griffin was awarded Leader of the year 2014, by the Guardian.
The company sought to reassure investors for the longer term, saying its continuing strategic focus was to diversify its automotive customers, drive growth in non-automotive applications and expand the geographic footprint:
"The Board believes that the Group remains on track to become a leading provider of premium acoustic and thermal materials and components to a wide range of sectors and customers."
