Avingtrans PLC – Notice of Results, Contract Win and Trading Update
Avingtrans (AIM: AVG), which designs, manufactures and supplies critical components, modules and associated services to the energy and medical sectors provides an update in respect of its financial year ended 31 May 2018.
The Group maintained the positive performance of the first half in the second half of the financial year and is pleased to report that full year results will be in-line with market forecasts.
Trading remains strong. The Group maintains a robust order book and order cover, including run rate business, as at 31st May is at 72% of revenue expectation for FY2019.
Net debt is marginally higher than previously anticipated, due to the investment of additional working capital following the acquisition of certain assets of Ormandy Group Limited, as reported in the Group’s interim results.
Following the successful integrations of Hayward Tyler Group and Ormandy, the Company is pleased to report an improved margin mix and, as such, expects its profit in FY2019 to exceed previous expectations.
The Company is pleased to announce that it has been awarded a contract with a UK Government agency, worth circa £5m. The project is scheduled for completion during FY2020, split evenly over the next two years.
The UK Government agency, which is a new customer for Peter Brotherhood, has signalled that access to our large scale, world-class facility will give Avingtrans the opportunity to tender for further business.
The contract’s implementation will utilise a combination of resources from both Peter Brotherhood and Metalcraft. The Board views this win as further justification for acquiring Hayward Tyler Group and demonstrates its successful integration.
Commentating on the contract win, Austen Adams, Managing Director of the Process Solutions division, said: “We are delighted to secure a new and significant contract for Peter Brotherhood which, following the Hayward Tyler acquisition, is an important part of the Avingtrans group and gives the group significant opportunities to tender for new business in new markets.”
Commentating on the contract and the trading update, Steve McQuillan, CEO, said: “This is an excellent contract win for Austen and his team and it demonstrates the leverage that the group can exercise, by coordinating the efforts of the teams in different business units with complimentary capabilities. The Hayward Tyler and Ormandy integrations are going well and we look forward to updating shareholders at the time of the results in October.”
Notice of Results
Avingtrans will publish results for the twelve months ended 31 May 2018 on 3 October 2018.