Avingtrans posts jump in half-year earnings

Avingtrans, which designs components for the aerospace, energy and medical sectors, saw profits rise in the last half of 2012 as the company made strategic acquisitions and shaved weak assets.

Avingtrans, which designs components for the aerospace, energy and medical sectors, saw profits rise in the last half of 2012 as the company made strategic acquisitions and shaved weak assets.

Profit after tax climbed to £6.5m for the six months to the end of November, compared to £0.7m in the first half.

However, the company said the figures were distorted by the sale of Jena Tec, a manufacturer and repairer of ballscrews, machine tool spindles and linear motion components.

Jena Tec was sold to Kuroda of Japan in November for a cash consideration of £12.4m.

The transaction reduced the company's net debt of £8.4m in May to £0.3m at the end of the second half. It also allowed the company to focus on its business in the aerospace, energy and medical sectors.

During the period the group acquired Aerotech Tubes, which manufactures pipework systems for aerospace, for £1.9m, net of cash. It contributed £56,000 to group revenues and £4,000 to profit after tax.

Overall revenue from continuing operations increased 19% to £16.9m as the order book remained at record levels boosted by aerospace business which saw revenues climb 25%.

Earnings before interest, tax, depreciation and amortisation grew slightly, from £1.0m in the first half to £1.1m.

Chairman, Roger McDowell, said: "Whilst the word transformation is overused in business terms it undoubtedly summarises the events at Avingtrans over the last few months.

"(...) As a result we have a market leading position in the aerospace pipes niche and have recently secured three key long term agreements with major clients worth £125m of revenue over the next 10 years.

"With this strength of visibility we have once again concluded that we can commit to the payment of an enhanced dividend with the final results this year, rewarding our loyal investors for their continued support."

The firm will reinstate an interim dividend of 0.7p per share compared to zero return in the previous period.

RD

Recommended

Should you buy Vodafone shares, or steer clear?
Share tips

Should you buy Vodafone shares, or steer clear?

Vodafone grew revenue by 4% and profit by 11% last year, and offers investors a 6.4% dividend yield. So should you buy Vodafone shares? Rupert Hargrea…
17 May 2022
Melrose Industries: a British manufacturer that is well-placed for recovery
Share tips

Melrose Industries: a British manufacturer that is well-placed for recovery

Melrose, the aerospace and automotive manufacturer, has been hit by the pandemic, but the shares are unduly cheap says David J Stevenson.
17 May 2022
Avoid easyJet shares – there are better airlines to invest in
Share tips

Avoid easyJet shares – there are better airlines to invest in

EasyJet used to be one of Europe’s most impressive airlines. But now it is facing challenges on all fronts and losing out to the competition. Rupert …
16 May 2022
Britain’s ten most-hated shares – w/e 13 May
Stocks and shares

Britain’s ten most-hated shares – w/e 13 May

Rupert Hargreaves looks at Britain's ten-most hated shares, and what short-sellers are looking right now.
16 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
High inflation will fade – here’s why
Inflation

High inflation will fade – here’s why

Many people expect high inflation to persist for a long time. But that might not be true, says Max King. Inflation may fall faster than expected – and…
13 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022