Avingtrans plc (LON:AVG), which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, has announced a trading update regarding the financial year ended 31 May 2026.
The Board is pleased to report that profit for the Period will be in line with market expectations and the Group has continued to secure strategically significant contract awards across its core nuclear and infrastructure markets, while also making encouraging progress in expanding its presence in adjacent growth sectors.
Advanced Engineering Systems Division (AES)
AES enters the new financial year with a strong order book in expanding markets and continues to win orders post year end, with some recent examples noted below.
In South Korea, the Group secured a further US$4m contract with KHNP to supply spare parts in support of the Westinghouse-designed Pressurised Water Reactors at Hanbit Nuclear Power Station, one of the world’s largest nuclear generating facilities. This award strengthens the Group’s position within the global nuclear aftermarket and demonstrates its continued ability to support critical nuclear infrastructure internationally.
Meanwhile, in the United States, the Group secured its first order from BWX Technologies, valued at US$1.8m, for the supply of reactor components. The award represents an important milestone following investment to access the highly regulated US nuclear defence market and demonstrates the Group’s ability to penetrate attractive new customer segments with significant long-term potential.
These contracts and other recent wins underline the potential for Hayward Tyler to drive significant additional shareholder value in the coming years from its strong position in existing and next generation nuclear markets.
The Group has also been awarded a £2m contract to supply high-security and fire protection doors for the HS2 N1 and N2 tunnel service shafts and headhouses. This contract builds on Booth’s long-standing design and supply partnership with the HS2 programme, bringing the total contract award value to over £50m and further supports its presence within major UK infrastructure projects.
The Group continues to make strong progress within the data centre sector. During the first quarter of FY27, Ormandy is expected to ship its tenth data centre solution. Cumulative revenues from this emerging market have now reached approximately £4m, while the identified opportunity pipeline has grown to around £40m, providing encouraging visibility for future growth.
Medical & Industrial Imaging Division (MII)
The MII division made encouraging progress over the period, including the receipt of key regulatory clearances within Orthopaedics. The Adaptix Ortho350 was awarded both FDA 510(k) clearance in the USA and CE certification for the UK and Europe, marking a major milestone in its mission to transform radiology.
Revenues for the MII division were lower than had been intended, driven primarily by timing in the receipt of regulatory clearances. The Company is now focussed on building its UK and US reseller network with a number of distributors signed up and first use reimbursement data being generated. In the Non Destructive Testing market, Adaptix signed its first material contract in the Period and the Adaptix Vet product continued to make steady progress.
Although Magnetica does not yet have clearance to sell its compact MRI product in the USA, the team remains focused on achieving this goal. In parallel, Scientific Magnetics has now had over 30 orders for magnet and cryogenics packages for quantum computing applications.
With the appointment of Stuart Gall as head of MII in January, the division is now well positioned to accelerate its commercialisation drive across a number of markets.
Paycheck Protection Program
During the Covid-19 pandemic, Avingtrans’ US-based businesses received loans under the US Government’s Paycheck Protection Program (“PPP”), which were subsequently forgiven in full. It has since emerged that, due to the complexity of the Second Draw eligibility rules, particularly around the application of employee-count limits to foreign-owned groups with US subsidiaries, the Avingtrans businesses did not qualify for the Second Draw loans. At the time, there was considerable uncertainty around these criteria.
The US Government has required repayment of the Second Draw loans. The principal amount is approximately $3.1 million, with interest and penalties expected to bring the total to approximately $5.0 million. The repayment terms remain under discussion, but are currently expected to be spread over approximately 24 months. The Board has decided not to contest the matter, since this could be counter-productive, given the strong pipeline of prospects in the next generation nuclear and defence sectors and is working to conclude a settlement with the US Government.
This is a one-off historical matter with no impact on the Group’s current operations or strategy.
Notice of Results
Avingtrans expects to publish its audited results for the year ended 31 May 2026 on 30 September 2026, at which time it will provide a further performance update.
Steve McQuillan, CEO of Avingtrans, commented:
“We are pleased to have continued our positive momentum, securing a number of strategically important contract awards across our core markets. These awards reinforce our strong positions in the global nuclear and infrastructure sectors, while our first order from BWX Technologies demonstrates the success of our efforts to access attractive new markets. We are also encouraged by the progress being made in the data centre sector, where growing revenues and a strengthening opportunity pipeline provide increasing visibility of future growth opportunities.”
