Avingtrans PLC (LON:AVG), the international engineering group which designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy, medical and industrial sectors, today announced its interim results for the six months ended 30 November 2021.
Financial Highlights
| • | Group Revenue of £45.1m (2021 H1: £48.7m) in line with management expectations |
| • | Gross Margin improved by 190 bps to 33.6% (2021 H1: 31.7%) as a result of planned cost reductions and improvements in project margins |
| • | Adj.*EBITDA at £5.8m, on lower revenues (2021 H1: £5.8m) |
| • | Adj.*EBITDA margin increased to 12.9% (2021 H1: 12.0%) |
| • | Adj. Profit before tax £3.6m (2021 H1: £3.7m) |
| • | Adj. Diluted Earnings Per Share from continuing operations was slightly down to 10.0p (2021 H1:10.8p) |
| • | Cash inflow from operating activities of £4.0m (2021 H1: £1.1m) |
| • | Net cash excluding IFRS16 debt was £22.7m, (31 May 2021: £23.3m) despite investments in Magnetica, Adaptix and various capex projects. |
| • | Reinstated interim Dividend of 1.6 pence per share (2021 H1: Nil) |
*Adjusted to add back amortisation of intangibles from business combinations, acquisition costs and exceptional items.
Operational highlights
| • | Revitalisation of Hayward Tyler, Energy Steel and Booth remains on plan |
| • | Order book: robust notwithstanding some contract delays |
| – Significant Nuclear sector contract wins in the UK and USA. | |
| – Sellafield 3M3 box project now worth £70m and moves to volume production phase | |
| – Exciting potential for Medical in compact, helium-free MRI system applications | |
| • | PIE strategy (Pinpoint-Invest-Exit) for organic growth and added value through M&A |
| – Magnetica integration proceeding to plan | |
| – £4.0m investment in Adaptix 3D X-ray completed | |
| – Exit of HT Luton site hampered by Covid-19, but continuing to pursue |
Commenting on the results, Roger McDowell, Avingtrans Chairman, said:
“Our proven Pinpoint-Invest-Exit (“PIE”) strategy continues to deliver robust results, exhibited by an increased gross margin, to deliver a stable adjusted EBITDA.
“The Group continues to invest across its three divisions, with a focus on the global energy and medical markets, to position them for maximum shareholder value via eventual exits in the years to come. The MRI system development at Magnetica is proceeding to plan and we are seeing on-going improvements in other business units, such as at Booth, as demonstrated by the first half results. Our value creation targets continue to be accomplished as anticipated and are underpinned by a conservative approach to debt, which is important during the on-going crisis.
“Our markets continue to evolve and strategic M&A opportunities remain a priority for us. Businesses like ours can command high valuations at the point of exit. Whilst the Board remains vigilant, we are confident about the current direction and potential future opportunities across our markets.
“Timing of contract revenue recognition has provided management with good visibility over H2 2022 revenue, despite some Covid-19 induced order delays and the Board is therefore cautiously optimistic in achieving full year market expectations.”
