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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021