Avingtrans revenue growth pumps up full-year profits

Energy and medical sector critical components engineering firm Avingtrans plc (LON: AVG) has seen progress across its fundamentals for the full-year ended 31 May 2019.

Owing to its acquisition of Hayward Tyler Group during FY18 and 11% underlying organic growth, the Company’s revenues jumped 34% year-on-year to £105.5 million. This pushed up the Group’s gross margin by 1.2%, to 26.7%, and led a 65% surge in adjusted EBITDA, to £9.4 million.

Additionally, its cash inflow from operating activities increased to £9.0 million, up from a £6.9 million outflow during FY18. Further, its net debt contracted considerably, from £7.1 million, to £2.0 million.

The situation was similarly peachy for Avingtrans shareholders, with their adjusted diluted EPS hiking from 8.4p to 14.9p and their full year dividend rising from 3.6p to 3.8p per share.

Avingtrans comments

Roger McDowell, Chairman, said,

“It has been a record year for the Group, in terms of orders, revenue and profit, reinforced by the deft execution of our now well-proven Pinpoint-Invest-Exit strategy (PIE). The former Hayward Tyler Group (HTG) businesses performed very well in their first full year with the Group and the Ormandy turnaround produced a solid, if modest profit in its first full year since acquisition in February 2018. The recent, tactical acquisitions of Tecmag, Texas; Booth, Bolton, UK; and Energy Steel, Michigan are all integrating well thus far. The Energy divisions and their management teams have proven themselves to be commercially astute and we continue to focus on profitable growth, to build valuable, enduring businesses. Our budding medical division continues to make slow, but steady progress, as it seeks to develop new technologies, to break through into new sectors.”

“We continue to concentrate on aftermarket opportunities, servicing end-user customers with comprehensive solutions, resulting in good growth and strong prospects. The nuclear life extension and decommissioning arenas are fertile ground for us, as demonstrated by contract wins in the period worldwide. Other market areas are also proving fruitful – such as renewable energy – and a more stable oil and gas environment has seen us win important contracts in that sector. Brexit and tariff wars are unwelcome distractions for the Group, but they will not cause us to deviate from our well-planned course. Despite the chill in the macroeconomic air, we remain quietly confident about our prospects in both Energy and Medical, with our strong Balance Sheet allowing us to be both agile and resilient. Recent order wins and our pipeline of opportunities underpin that outlook.”

Investor notes

The Company’s shares were up 0.79% or 1.90p to 241.90p per share 18/09/19 15:07 BST. Analysts from finnCap reiterated their ‘Corporate’ stance on Avingtrans stock.

Elsewhere in energy and medical news, there have been updates from;  AFC Energy plc (LON: AFC), John Laing Environmental Assets Group Ltd PLC (LON: JLEN), IGAS Energy PLC (LON: IGAS), Trinity Exploration & Production PLC (LON: TRIN),  Integumen PLC (LON: SKIN), Medica Group PLC (LON: MGP) and EMIS Group (LON: EMIS).

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Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.