REG - Avingtrans PLC - Trading Update and Notice of Results

AvingtransAnnouncement

19/06/2024 07:00

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RNS Number : 9429S  Avingtrans PLC  19 June 2024

19 June 2024

Avingtrans Plc

("Avingtrans", the "Company", or the "Group")

Trading Update and Notice of Results

 

Avingtrans PLC (AIM: AVG), which designs, manufactures and supplies critical
components, modules, systems and associated services to the energy, medical
and industrial sectors, announces a positive trading update in respect of the
financial year ended 31 May 2024.

The Board is pleased to report revenue from continuing operations has reached
a record level and aligned with market expectations. Adjusted EBITDA from
continuing operations is materially ahead of market expectations* and is
expected to be in the range of £13-14m. This was in part due to lower than
budgeted commercialisation costs in the Medical Division, some of which have
been delayed in to FY25. Net debt at £6.1m, excluding IFRS16, was better than
anticipated*, with the completion of several key projects contributing to
enhanced cash receipts and lower-than-expected spending on medical
developments.

Advanced Engineering Systems Division (AES)

The AES division delivered strong underlying results and maintained its
momentum into the new financial year, reflecting its robust performance and
growth potential. Ormandy achieved its best results since its acquisition,
showcasing the successful integration and operational improvements within the
division. Similarly, Slack & Parr completed a successful integration
following the acquisition of its assets in August, marking a significant
milestone. In its first year with the Group, Slack & Parr recorded a
positive EBIT, demonstrating its helpful contribution to the overall
performance. Hayward Tyler also achieved its best results since acquisition,
further underscoring the group's effective acquisition strategy and
operational quality across its divisions.

Medical & Industrial Imaging Division (MII)

The medical businesses showed significant progress during the period, with
advancements in both novel 3D X-ray products and helium-free MRI systems. Both
products received encouraging market feedback at recent trade shows,
indicating strong market interest and potential. Adaptix, following its
acquisition in September, has been successfully integrated and is now
equipping its Scottish facility to manufacture key system components for
veterinary and orthopaedic products. The Group has initiated sales of
veterinary and non-destructive evaluation (NDE) products in the UK and USA,
though the sales buildup has been slower than initially forecasted. However, a
volume increase is anticipated in the current financial year.

Magnetica has transitioned into larger premises in Brisbane and Houston,
investing in these facilities to enable volume production of MRI systems
starting in FY25. While Magnetica has made substantial progress in finalising
the system's development, the increased cyber security scrutiny required by
the FDA in the USA has required additional time and effort. Consequently, it
is now expected to obtain 510(k) approval in the first half of 2025.
Thereafter, Magnetica will be ready to immediately commence sales in the USA.
Both Magnetica and Adaptix have appointed initial distributor partners in the
UK and the USA, further strengthening their market presence and distribution
capabilities.

Notice of Results

Avingtrans expects to publish its audited results for the year ended 31 May
2024 on 25 September 2024, at which time it will provide a further performance
update.

Steve McQuillan, CEO of Avingtrans, commented:

"We are very pleased with the Group's performance reporting record revenue
with Adjusted EBITDA ahead of market expectations. Lower commercialisation
costs in the Medical Division, some of which have been delayed in to FY25,
have contributed to this performance but we are pleased that the Group is
entering FY25 with record-level revenue from continuing operations, leading
the Board to view the outlook for this year with confidence."

 

*Prior to today's announcement, the Company understands that market
expectations were: Adjusted EBITDA of £10.0m and Net Debt (exc. IFRS 16) of
£7.1m

Enquiries:

 Avingtrans plc                                          01354 692 391
 Roger McDowell, Chairman

 Steve McQuillan, Chief Executive Officer

 Stephen King, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser and Broker)   020 7496 3000
 Shaun Dobson

 Alex Bond

 Oliver Platts

 IFC Advisory (Financial PR)                             020 3934 6630
 Graham Herring

 Tim Metcalfe

 Zach Cohen

 

About Avingtrans plc:

Avingtrans designs, manufactures and supplies original equipment, systems and
associated aftermarket services to the energy, medical and industrial markets
worldwide.

Business units

 Hayward Tyler - Luton, East Kilbride & Nottingham, UK, USA, China and
 India

 Specialises in the design, manufacture and servicing of performance-critical
 motors and pumps for challenging environments.

 Energy Steel, Inc - Rochester Hills, Michigan, USA

 Provider of custom fabrications for the nuclear industry, specialising in: OEM
 parts obsolescence; custom fabrications; engineering design solutions; product
 refurbishment; on-site technical support.

 Stainless Metalcraft Ltd - Chatteris, UK

 Provider of safety-critical equipment for the energy, medical, science and
 research communities, worldwide, specialising in precision pressure and vacuum
 vessels and associated fabrications, sub-assemblies and systems.

 Booth Industries - Bolton, UK

 Designs, manufactures, installs and services doors and walls which can be
 tailored to be: blast and explosion proof; fireproof; acoustically shielded;
 high security/safety; or combinations of the above.

 Ormandy Group - Bradford, UK

 Design, manufacturers and servicing of off-site plant, heat exchangers and
 other HVAC (heating, ventilation and air conditioning) products.

 Composite Products Ltd - Buckingham, UK

 Centre for composite technology, parts and assemblies, serving customers in
 industrial markets.

 Adaptix Ltd - Oxford, UK

 Adaptix has developed novel 3D X-ray for Orthopaedic and Veterinary
 applications amongst others. Commercialisation of this system (and others) is
 on-going.

 Magnetica Ltd - Brisbane, Australia

 Magnetica Limited specialises in the development of next generation MRI
 technologies, including dedicated extremity MRI systems and MRI system
 components. Magnetica has successfully built and tested a compact, integrated
 3 Tesla orthopaedic MRI system, demonstrating clinical-quality imaging.
 Commercialisation of this system (and others) is on-going. Magnetica's
 structure now includes two other business units:

 Scientific Magnetics - Abingdon, UK

 Designs and manufactures superconducting magnet systems and associated
 cryogenics for a variety of markets including MRI and provides services for
 Nuclear Magnetic Resonance instruments.

 Tecmag Inc - Houston, USA

 Designs, manufactures and installs instrumentation, including consoles, system
 upgrades, and probes, mainly for Magnetic Resonance Imaging (MRI) and Nuclear
 Magnetic Resonance (NMR) systems.

 

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