Avingtrans PLC – AVG – Interim Results

Avingtrans PLC – AVG – Interim Results

Avingtrans PLC (AIM: AVG), the international engineering group which designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy and medical sectors, today announces its interim results for the six months ended 30 November 2020. 

 

Financial Highlights

·    Revenue was stable at £54.1m (2020 H1: £54.3m)

·    Gross Margin improved to 30.9% (2020 H1: 25.6%)

·    Adjusted* EBITDA increased by 36.6% to £6.3m (2020 H1: £4.6m)

·    Profit before Tax was £1.4m (2020 H1 £0.4m)

Adjusted* Profit Before Tax increased to £3.5m (2020 H1: £1.8m)

·    Adjusted* Diluted earnings per share doubled to 10.0p (2020 H1: 5.1p)

·    Cash inflow from operating activities was £1.1m (2020 H1: £2.1m outflow)

·    Net Debt (pre IFRS16) increased slightly to £7.8m (31 May 2020: £7.4m)

·    Dividend to be reinstated at Full Year (2020 H1: suspended)

 

* Adjusted to add back amortisation of intangibles from business combinations, acquisition costs and exceptional items

·    Energy revenues decreased by 1.3%, driven by Covid-19 delays

·    Profits in the Energy divisions increased by 34.6%, driven by a recovery in EPM

·    Aftermarket margin performance continuing to improve across all business units

·    Sellafield 3M3 (three-metre-cubed box) steady - meeting customer expectations

·    Expanding orders in nuclear sector in the UK, USA and Asia

·    Ormandy Group performance steadily improving despite Covid-19 induced delays

·    Hydrocarbons - sales impacted by Covid-19 and targeted restructuring implemented

·    Booth and Energy Steel results are improved year on year and recovering as anticipated

·    In the period, Booth secured a contract for safety doors for HS2, worth £36m and, post period end, secured an extension to another government contract, worth £2.9m

·    The process to sell the HT Luton site is underway

Medical

·    Divisional revenues and margins were flat, as the planned transition to new markets continues

·    Post period end, we completed the merger of SciMag and Tecmag with Magnetica of Australia

·    Work on compact MRI systems is now expanding, with new investment planned

·    In parallel, we are now planning to exit third-party MRI component manufacture at Metalcraft

·    Composite Products performance improved in the period, with customers expanding

ommenting on the results, Roger McDowell, Chairman, said:

 

"Avingtrans continues to make good progress during the pandemic and has proven to be resilient. Following our PIE strategy, both Booth Industries and Energy Steel are continuing to improve since acquisition and the potentially transformational deal with Magnetica (post period end) is an exciting prospect for the medical division. The period result shows improving profits against flat revenues, once more demonstrating our agility, even in adversity."

 

"Although we face new challenges, we will also keep converting opportunities and we remain confident about our outlook in both the Energy and Medical sectors."

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