Autins Group plc (LON:AUTG) Neptune technology and attractive risk-reward ratio is discussed by Co-fund manager, Gervais Williams of Miton UK Microcap Trust plc (LON:MINI) as part of a wide-ranging interview on the UK investment trust.
DirectorsTalk asked:
Autins are a leading industry specialist in acoustic and thermal insulation for the automotive industry, they have bounced back strongly in 2023 from a couple of years of supply chain disruptions. In their last trading update for the year, group sales were up 20%, and gross profits improved by around 55% to £6.4 million. What’s your view on them?
Gervais Williams commented:
What is interesting about many of these microcaps is that they have strong management teams with strong technology. I think the Neptune technology, their mouldable insulation, is really interesting, particularly useful in the automotive industries as well as for other applications as well, particularly in electric vehicles.
Electric vehicles need to be insulated, but they also need to be very, very light, and if you do warm them up, you don’t want to spend a lot of energy warming them up because you want that energy mainly to be used in driving the car. By having this kind of Neptune insulation, Autins hope to extend the ranges of some of these electric vehicles.
So, really interesting company, market cap £5.5 million, doing £20 million of sales. Where they’re getting the opportunity to really scale up this technology, it will generate lots of cash going forward.
This is the nature of the opportunity, it’s not so much just in one industry, it’s across a wide range of different industries, and I think, in a way, Autins are just another example in a different industry of this attractive risk-reward ratio, as we see it.
Autins Group plc (LON:AUTG) is an industry-leading designer, manufacturer and supplier of acoustic and thermal insulation solutions for the automotive industry and other sectors.
