Avingtrans plc, which designs, manufactures and supplies critical components and associated services to the medical, energy, industrial and global aerospace sectors, today announces its interim results for the six months ended 30 November 2011.
- Revenue increased by 20% to £20.2m (H1 2011: £16.9m)
- Order book remains close to record levels
- EBITDA improved by 26% to £1.8m (H1 2011: £1.5m)
- Fully diluted, adjusted1 EPS of 3.0 pence per share (H1 2011: 1.8 pence per share)
- As anticipated, cash generated from operations decreased to £0.1m (H1 2011: £0.9m)
- Gearing increased to 34% (2011 year end: 29%)
- Commitment to an enhanced dividend on achieving final results this year
1 - fully diluted earnings per share adjusted to add back amortisation and exceptional items
The Group businesses produced a string of highlights, including the following:
- Sigma produced strong growth in the first half, with the Aerospace division growing 30%;
- Sigma's recent new long term contract win with Goodrich (£3m) promises further long term key account development in civil aerospace
- C&H grew robustly and added a further Rolls Royce site as a key customer in the period
- Sigma Composites agreed an acquisition in the Aerospace composites market, augmenting existing competencies and product set
- Metalcraft saw revenue expand by 14% in the first half
- Crown's markets remained difficult and further cost cutting is underway to minimise harmful effects pending market restart.
- Jena Tec has seen on-going strength in Europe despite the economic uncertainty and robust growth in the USA, achieving record turnover and profits in H1, with revenue up 22%.
Commenting on the results, Roger McDowell, Chairman, said: "Aldous Huxley once said that "the only completely consistent people are the dead". Nevertheless, Chairmen of smaller quoted companies crave a degree of consistency on behalf of shareholders. Therefore, it is pleasing to report on a largely consistent first half, in line with market expectations. Steadily building on the improving position of last year, we continued to see the majority of our markets being reasonably resilient. This is particularly pleasing given the volatile economic backdrop we have been working against. We have built on the existing customer base and signed up important new customers - eg Goodrich - from whom we foresee substantial new business emerging. Therefore, our consistent strategic direction is producing the expected returns and we expect this to continue for the rest of the year.
In consequence, we have concluded that we can commit to the payment of an enhanced dividend with the final results this year. Our loyal band of steadfast investors will, we hope, cheer this steady progress."