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 2024.
Financial Highlights
· Revenue from continuing operations increased by 17.3% to a record £136.6m (2023: £116.4m)
· Gross Margin was stable at 32.2% (2023: 32.9%)
· Adjusted EBITDA from continuing operations was slightly ahead of the upgraded market expectations at £14.0m (2023: £13.7m), following planned strategic investments in Adaptix and Magnetica, Underlying Adjusted EBITDA (excluding acquisitions) was £16.0m
· Adjusted PBT from continuing operations was £7.3m (2023: £9.0m), excluding acquisitions was £12.0m
· Adjusted Diluted earnings per share from continuing operations was 18.5p (2023: 23.4p)
· Net Debt (excluding IFRS16) as of 31st May 2024 of £6.1m (Net Cash 31 May 2023: £13.0m)
· Final dividend of 2.9p per share proposed, resulting in a total dividend of 4.7p per share (2023: 4.5p)
Operational Highlights
Energy (AES)
· Revenue increased by 17.8% to £132.9m (2023 £112.8m)
· Improved result with Adjusted EBITDA up 13.5% to £17.9m (2023: £15.5m)
· Metalcraft contract to supply the Sellafield 3M3 boxes continues, in phase two of the programme
· Booth commenced manufacture of HS2 door frames. Aftermarket sales increasing strongly
· Ormandy records best result since acquisition, following successful integration of HES/HEVAC in 2023
· Acquisition of the assets of S&P in August 2023 for £4.1m. S&P records creditable first year result
· Two new nuclear decommissioning contracts won by Metalcraft, worth £14.5m combined
· HT Luton won £2.5m defence contracts from Rolls Royce and a further £3.0m from Forsmark
· HT Inc won $10.0m pumps contract from TerraPower, for next generation nuclear power station
Medical (MII)
· Revenue stable year on year at £3.7m, pending the volume build-up of new MRI and X-ray products
· As anticipated, LBITDA increased to (£2.8m), vs 2023: (£0.6m) as MRI and X-ray development projects progress
· Acquisition of the remaining interest in Adaptix for a total combined consideration of £7.2m, including absorbed and repaid debts
· Magnetica and Adaptix both appointed first US distributor, Televere Systems
· Strong market pull for both businesses at trade shows, supported by compelling sales propositions
· Adaptix equipping Scottish facility to manufacture key system components for Vet and Ortho products
· Magnetica expanded into a bigger factory, to facilitate volume MRI system production, starting in 2025
· Tecmag moved into improved premises, to gear up for Magnetica and Adaptix product sales in the USA
· Adaptix commenced sales of Vet products in the UK and USA. Volume build-up expected in next FY
1 Adjusted to add back amortisation of intangibles from business combinations, acquisition costs and exceptional items
Current Trading & Outlook
· In the quarter since 31 May 2024, the Group has performed in line with management expectations with the momentum of FY24 continuing into FY25
· The Board remains confident about the current strategic direction and potential future opportunities across our markets, though we are mindful of turbulent 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 prudent level of financial headroom.
Commenting on the results, Roger McDowell, Chairman, said:
“We are pleased to present another solid set of results. In many aspects, this year has been challenging, but Avingtrans has once again performed very well as a group and exceeded market expectations. During the year, we made prudent use of our robust balance sheet by purchasing Slack & Parr and Adaptix, to strengthen our positions in specialist pumps and medical imaging. We also increased our investment in Magnetica’s cutting-edge MRI systems. We have a strong order book going into FY25, and we anticipate growing as a Group this year thanks to favourable macro conditions in the energy, infrastructure, and healthcare sectors.”
