Avingtrans PLC – Final Results

Avingtrans PLC – Final Results

Avingtrans plc, which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, is pleased to announce its preliminary results for the twelve months ended 31 May 2019. 

 

Financial Highlights

·      Revenue from continuing operations increased by 34% to £105.5m (20181: £78.9m)

Reflecting the full year impact of FY18 HTG acquisition and 11% underlying organic growth

·      Gross Margin improved to 26.7% (20181: 25.5%)

·      Adjusted2 EBITDA from continuing operations increased by 65% to £9.4m (20181: £5.7m)

·      Adjusted2 PBT £5.3m (20181: £2.4m)

·      Adjusted2 Diluted earnings per share were boosted to 14.9p (20181: 8.4p)

·      Cash inflow from operating activities £9.0m (2018: £6.9m outflow)

·      Net Debt £2.0m (31 May 2018: £7.1m)

·     Increased final dividend of 2.4p per share (2018: 2.3p). Full year 3.8p (2018: 3.6p)

 

1 2018 not restated for IFRS15

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

 

Operational Highlights

Energy

·     Revenues up 36% to £93.4m (2018: £68.4m) including first full year of HTG results

·     Ormandy acquisition made a profit in its first full year

·     Acquisitions of Booth and Energy Steel post-period end are proceeding to plan

·     Sellafield 3M3 boxes now in serial production

·     £10m nuclear life extension contract with Vattenfall for Forsmark

·     £10m steam turbine contract for floating production vessel

·     Exited Whiteley Read and Maloney sites, to rationalise oil and gas assets

·     New Hayward Tyler Chinese factory in Kunshan (China) fully operational

·     Aftermarket performance continuing to improve across all business units

Medical

·     Revenues up to £12.1m (2018: £10.4m), transition to new markets continues

·     Acquisition of Tecmag Inc, for £0.1m including costs, providing system capability

·     Scientific Magnetics MRI system developments progressing broadly to plan

·     Siemens shipments remained steady in the UK and China

·     Composite Products had another solid year

 

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

“It has been a record year for the Group, in terms of orders, revenue and profit, reinforced by the deft execution of our now well-proven Pinpoint-Invest-Exit strategy (PIE). The former Hayward Tyler Group (HTG) businesses performed very well in their first full year with the Group and the Ormandy turnaround produced a solid, if modest profit in its first full year since acquisition in February 2018. The recent, tactical acquisitions of Tecmag, Texas; Booth, Bolton, UK; and Energy Steel, Michigan are all integrating well thus far. The Energy divisions and their management teams have proven themselves to be commercially astute and we continue to focus on profitable growth, to build valuable, enduring businesses. Our budding medical division continues to make slow, but steady progress, as it seeks to develop new technologies, to break through into new sectors.

We continue to concentrate on aftermarket opportunities, servicing end-user customers with comprehensive solutions, resulting in good growth and strong prospects. The nuclear life extension and decommissioning arenas are fertile ground for us, as demonstrated by contract wins in the period worldwide. Other market areas are also proving fruitful – such as renewable energy – and a more stable oil and gas environment has seen us win important contracts in that sector. Brexit and tariff wars are unwelcome distractions for the Group, but they will not cause us to deviate from our well-planned course. Despite the chill in the macroeconomic air, we remain quietly confident about our prospects in both Energy and Medical, with our strong Balance Sheet allowing us to be both agile and resilient. Recent order wins and our pipeline of opportunities underpin that outlook.”

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