Avingtrans PLC (LON:AVG), which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, announces a proposed conditional placing of 3,309,000 new ordinary shares of 5 pence each in the capital of the Company at a price of 630 pence per Placing Share to raise gross proceeds of approximately £21 million.
Placing Highlights
· Placing to raise approximately £21 million (before fees and expenses) through the issue of the Placing Shares at a price of 630 pence per Placing Share;
· The Placing Shares will represent approximately 9.8 per cent. of the existing issued ordinary share capital of the Company;
· The Issue Price is equal to the closing mid-market price of 630 pence per Existing Ordinary Share on 9 July 2026, being the latest practicable date prior to the publication of this Announcement;
· The net proceeds of the Placing will be deployed principally to expand its nuclear capacity by building out its facility in Michigan, including acquisition of manufacturing equipment and expansion of its workforce, so as to be able to accommodate expanded demand from both existing client orders and prospective new projects;
· The expansion of this facility will enable the growth of the Company’s nuclear revenues from circa currently £35m to circa £90m from already known business from its existing customers over the next 5 years
· The Placing is not conditional upon the approval by the Company’s shareholders;
· The Placing is subject to the terms and conditions set out in the Appendix.
Background to and reasons for the Placing
The Company’s Advanced Engineering Systems (AES) division has to date seen strong growth prospects across its businesses, driven by a keen focus on emerging opportunities in global nuclear markets.
AES’s businesses operating across the nuclear sectors include: Booth Industries (nuclear new build); Hayward Tyler (nuclear new build, fusion and life extension); Energy Steel (nuclear new build and life extension); HT Fluid Handling (life extension and decommissioning); and Metalcraft (nuclear new build and decommissioning).
AES, which has a strong heritage and decades of experience in the nuclear power market, has seen a significant uptick in demand for its mission critical products, driven by a combination of influences including renewed global focus on energy security, decarbonisation, and the need to power the infrastructure behind AI and digital transformation. The division is now positioned to consolidate itself as a critical supplier to the next generation of nuclear deployment programmes, leveraging off of existing accreditation, expertise, and strong client relationships.
The Company considers its total addressable market for US nuclear to be circa $2.5bn, based on the total estimated demand for components it can and is qualified to make in support of major incumbents and other emerging players in the Advanced Nuclear market. Of this, the Company considers its serviceable obtainable market (“SOM”) to be circa $1.3bn over a ten-year period, reflecting continued access to chargeable development work for two existing significant US nuclear customers. This SOM excludes potential additional demand from aftermarket servicing.
Management believe there to be a significant opportunity to service growing demand from existing client orders and pipeline, as well potential new customers, driven by structural tailwinds to the nuclear sector. Additional capital expenditure will be required in order to be able to service the growing demand pipeline, particularly from certain key existing customers, from which management believe there is significant scope to grow revenues and EBITDA from its nuclear businesses over the medium term, particularly in the US.
With sufficient capital expenditure deployed, management believe that the Company has the weighted opportunity in its addressable market to grow annual revenues in nuclear by up to circa £90 million by 2031, from its current levels of circa £35 million. This investment approach is consistent with the Company’s P.I.E. strategy, by seeking to invest into a strong and visible growth trajectory from known demand, in order to return greater value to shareholders.
Use of Proceeds
As such, the Directors intend to use the net proceeds of the Placing, expected to be approximately £19.9 million, as follows:
· approximately £7 million towards the build-out of the Company’s new facility in Michigan, USA;
· approximately £4 million on manufacturing equipment;
· approximately £1 million on workforce expansion and training;
· approximately £3 million for general working capital purposes; and
· the balance of approximately £5 million retained as contingency,
so as to be able to accommodate expanded demand from both existing client orders and prospective new projects.
Management Projections
Management’s illustrative projections indicate that Hayward Tyler should be able to generate further revenue from this Nuclear investment of between £27m-£45m (subject to a number of assumptions) which, at its typical margin, could achieve additional EBITDA of between £9.6m-£17m in FY31, on the basis that the investment and Hayward Tyler continuing to grow its nuclear business in line with existing client opportunities and pipeline.[1]
Details of the Placing
The Company is proposing to raise approximately £21 million (before expenses) by means of the Placing. The aggregate net proceeds after costs related to the Placing are expected to be approximately £19.9 million.
Singer Capital Markets are acting as sole bookrunner in connection with the Placing and as Nominated Adviser to the Company.
The Placing will be effected by way of an accelerated bookbuild (the “Bookbuild“) at the Issue Price. The Bookbuild will open with immediate effect following the release of this Announcement in accordance with the terms and conditions set out in the Appendix.
The Placing is conditional upon, inter alia, the Placing Agreement between the Company and Singer Capital Markets not having been terminated in accordance with its terms.
The timing for the close of the Bookbuild and allocation of the Placing Shares shall be at the absolute discretion of Singer Capital Markets, in consultation with the Company. The final number of Placing Shares to be issued pursuant to the Placing will be agreed by Singer Capital Markets and the Company at the close of the Bookbuild. The result of the Placing will be announced as soon as practicable thereafter. The Placing is not being underwritten.
Director participation in the Placing
The Placing is also expected to include the participation of Roger McDowell, Chairman, who is expected to invest approximately £0.8 million, and such participation would also constitute a related party transaction under Rule 13 of the AIM Rules. Further details of this participation will be set on in the Result of Placing Announcement.
Cornerstone Participation
The Company has received a commitment from a blue-chip institutional investor, a recently established small holder in the Company, to act as cornerstone investor in the Placing for up to £11 million.
Admission, settlement and dealings
Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on the AIM market of the London Stock Exchange.
Settlement for the Placing Shares and Admission are expected to take place on or around 8.00 a.m. on 14 July 2026 or, in each case, such later time and/or date as Singer Capital Markets and the Company agree (being in any event no later than 8.00 a.m. on 21 July 2026).
The Placing Shares, when issued, will be credited as fully paid and will rank pari passu in all respects with the Existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid after the date of issue.
This Announcement should be read in its entirety. In particular, you should read and understand the information provided in the “Important Notices” section of this Announcement. The Appendix to this Announcement sets out further information relating to the terms and conditions of the Placing.
The person responsible for arranging the release of this Announcement on behalf of the Company is Steve McQuillan, Chief Executive Officer of the Company.
EXPECTED TIMETABLE OF PRINCIPAL EVENTS
| Announcement of the Placing | 10 July 2026 |
| Announcement of the results of the Placing | 10 July 2026 |
| Admission and commencement of dealings in the Placing Shares on AIM | 8.00 a.m. on 14 July 2026 |
| Where applicable, expected date for crediting of the New Ordinary Shares in uncertificated form to CREST accounts | As soon as possible following Admission |
