# Avingtrans positive update and possible acquisition of Adaptix

- Link: https://www.directorstalkinterviews.com/avingtrans-positive-update-and-possible-acquisition-of-adaptix/4121123772
- Published: 2023-07-13T07:07:09+01:00
- Author: Emily Johnson

**[Avingtrans plc](https://www.directorstalkinterviews.com/company/avingtrans-plc/avg.l)**(
LON:AVG), the engineering technology group, has announced a trading update in respect
of the financial year ended 31 May 2023. The Board is pleased to report that the
results for the year ended 31 May 2023 are expected to be in line with market expectations*.
The momentum from FY23 has continued into FY24 and the current order book has continued
to strengthen leaving us with a record order book for this time of year.

The Group also announced that it has secured a number of positive contract wins 
throughout the period, notably in the nuclear sector, several of which have been
set out below.

Hayward Tyler Luton has secured a £3.3m follow-on order, for Forsmark nuclear power
station in Sweden to support the life extension programme there. This follow-on 
order is expected to be delivered in the next 18 months and comes after the initial
£10m order in 2019, which was completed in 2022.

A £1.6m order for Hayward Tyler Luton from a Polish nuclear power station, owned
by the energy group Enea, also for a life extension programme.

A $2.5m order for Hayward Tyler in Vermont from KHNP, ordered via Doosan in South
Korea, to support upgrades in relation to nuclear regulatory requirements.

Energy Steel in Michigan received its first order from TerraPower, for equipment
worth $1m. TerraPower is a next generation nuclear power company, backed by Bill
Gates, which is now building a demonstrator plant.

**Possible Acquisition of Adaptix**

Avingtrans plc has also announced that it has submitted a proposal in connection
with the conditional acquisition of the remaining issued share capital and to be
issued share capital of Adaptix Ltd, the emerging MedTech business based in Oxford,
for a total consideration of up to £3.0m (being up to 100 pence per ordinary share).

The Proposal has been accepted by the majority of Adaptix shareholders on a conditional
basis with Adaptix (in accordance with its obligations under its Articles) inviting
various other parties to submit a competing proposal for the entire business, or
its assets, by 21^(st) July. Should no superior competing offer be received at that
point, then the Proposal will be accepted and completion of the acquisition would
be subject to the satisfaction of certain conditions.

Should the Proposal be accepted, the Consideration is to be satisfied entirely through
the issue of Avingtrans shares, to be issued following the completion of the acquisition.

There can be no certainty that the Proposal will be accepted, even if the pre-conditions
are satisfied or waived, or a superior offer for Adaptix emerges. In addition, Avingtrans
has the ability to withdraw its offer at any time up to exchange of contracts, since
the offer remains subject to the approval of the Avingtrans Board.

_Background to Adaptix_

Since the Group first completed a minority investment in October 2021, Adaptix has
made successful progress towards its 3D X-ray technology, with over 28 patent families
and over 300 patents filed to date. Most recently, Adaptix was awarded 510k clearance
for its novel orthopaedic product by the US FDA in March 2023. The Board believes
that the potential acquisition will give the Group a market leading position in 
novel imaging products, as applied to (eg) veterinary and orthopaedic imaging at
the point of care, notably when considered in parallel with the Group’s existing
interest in novel MRI products, via Magnetica.

Avingtrans currently owns 667, 333 ordinary shares in Adaptix. The total issued 
share capital of Adaptix is currently 3,708, 044 ordinary shares.

Avingtrans will make further announcements in due course, as appropriate.

**Notice of Results**

Avingtrans expects to publish its results for the twelve months ended 31 May 2023
on Wednesday 27 September 2023.

The management team will be hosting a presentation for analysts on the day of results–
for more information please contact Zach Cohen at IFC Advisory on [zach.cohen@investor-focus.co.uk](https://www.directorstalkinterviews.com/avingtrans-positive-update-and-possible-acquisition-of-adaptix/zach.cohen@investor-focus.co.uk)

> **Steve McQuillan, CEO of Avingtrans, commented**:
> “We are delighted by the performance of the Group in what have been difficult 
> market conditions, including on-going supply chain disruptions, albeit that these
> have eased somewhat from their nadir. Despite the headwinds, order intake has 
> been robust, notably growth in Engineered Pumps and Motors (EPM) has been particularly
> strong. As a result, we are pleased that the Group is entering FY24 with the best
> order cover since prior to the pandemic which leads the Board to view the outlook
> for this year with confidence.”

_*Consensus FY23 Revenue, Adjusted EBITDA & Net Cash of £108.9m, £13.5m & £13.6m
respectively_

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