Avingtrans reports record revenue and earnings growth in FY25

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 its preliminary results for the year ended 31 May 2025.

Financial Highlights

·      Revenue from continuing operations increased by 14.5% to a record £156.4m (2024: £136.6m)

·      Gross Margin was stable at 31.7% (2024: 32.2%)

·      Adjusted¹ EBITDA from continuing operations was slightly ahead of the previously upgraded market expectations at £16.7m (2024: £14.0m). AES recorded a 20% uplift in adjusted EBITDA across the division to £21.5m, offset by a smaller than forecast investment in the MII division

·      Adjusted¹ PBT from continuing operations was £8.6m (2024: £7.3m), reflecting strong underlying growth in AES results alongside lower restructuring costs

·      Adjusted¹ Diluted earnings per share from continuing operations was 23.7p (2024: 18.5p)

·      Net Debt (excluding IFRS16) at 31 May 2025 of £12.3m (31 May 2024: £6.1m), ahead of market expectations

·      Final dividend of 3.0p per share proposed, resulting in a total dividend of 4.9p per share (2024: 4.7p)

¹ Adjusted to add back amortisation of intangibles from business combinations, acquisition costs and exceptional items 

Operational Highlights 

Energy (AES)

·      Revenue increased by 13.9% to a record £151.5m (2024: £132.9m)

·      Adjusted¹ EBITDA up 20% to £21.5m (2024: £17.9m)

·      Strong performance by Hayward Tyler, driven by rapid global growth in AI and data centre infrastructure, electrification of transport and links to new nuclear power requirements

·      Positive progress made in the HT Inc with a $10.0m contract from TerraPower, for novel nuclear pumps

·      Ormandy reported record results, benefitting from growth in energy demanding AI and data centres

·      Metalcraft continues to ramp-up 3M3 box output in serial production phase for Sellafield

·      Booth completed tests of HS2 doors and won additional HS2 contracts worth £12m (£7.5m post-period end)

·      S&P recovery continues, with improved year on year result

·      Post period end, HTI secured $16m of nuclear equipment and spares orders from Korea Hydro & Nuclear Power (KHNP) in S. Korea

Medical (MII)

·      Revenue increased to £4.9m (2024: £3.7m), pending build-up of new MRI and X-ray products

·      LBITDA increased to £3.6m (2024: £2.8m) as new MRI and X-ray products progress to market

·      Adaptix appointed multiple initial distributors in the UK and the USA, across three addressable market sectors, with potential EU distributors also identified

·      Encouraging customer reactions at Radiological Society of North America, London Vet Show and Farnborough International Airshow. Customers overwhelmingly commend high quality of images

·      Adaptix’s NDT product, recognised for its high image quality, was awarded “Innovation of the Year” by the Aerospace Technologies Institute, UK, highlighting its groundbreaking impact on aerospace inspection

·      Magnetica expects to submit 510(k) approval to the FDA during H2 FY26

·      In the period, Magnetica started work on a new MRI guided therapy product concept for ViewRay® Inc

Current Trading & Outlook

·      In the quarter since 31 May 2025, the Group has performed in line with management expectations, with the strong momentum of FY25 continuing into FY26, bolstered by a series of contract wins in AES

·      The Board remains confident about the current strategic direction and potential future opportunities across both the AES & MII divisions, whilst continually monitoring market conditions

·      We will continue to refine our business by pinpointing specific additional acquisitions as the opportunities arise, to generate superior shareholder value, whilst maintaining a conservative approach to debt

Commenting on the results, Roger McDowell, Avingtrans Chairman, said:

“We are very pleased to present investors with another enhanced set of results. In challenging global markets, Avingtrans has again performed robustly as a group and exceeded market expectations. During the year, we made good use of our resources, to continue with the Investment phase of our PIE strategy at Slack and Parr, Adaptix and Magnetica. This activity was, in turn, supported by a record set of results in the AES division. With several of our businesses now benefitting from positive global trends in AI, data centres and, relatedly, new nuclear power, we have a strong order book moving into FY26 and, therefore, we anticipate further organic growth as a Group this year.”