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Hi poole, hope you're well. You were right in that not much else happened here throughout the summer. The announcement today of a £3m contract is encouraging and should boost confidence that long time customers will buy elsewhere. I tend to agree with your analysis that the market is really only interested in one thing and that's details of the trading results for the year. With net debt under control, the banks satisfied as far as can be determined and HAYT able to flourish with ample supply of cash-flow I would hope to see further gains in the lead up to results.
Hi the_shareminator - New work for Peter Brotherhood is encouraging (but with no detail wonder whether it is navy related) as is also the speed with which the integration of acquisitions has been completed .I agree that the shares are undervalued but 250p we may have to wait a further update with the annual results in early October. Otherwise the next leg up may be occasioned by some positive news on box project deliveries from Metalcraft to Sellafield.
Incredibly undervalued, compared to where HAYT before and following the acquisition of Ormandy into the larger AVG group and the new contract win and notice of further tenders. This is making all the right signals and 250p should come any time now IMO
Mon, 25th Jun 2018 07:00
Notice of Full Year Results, Contract Win and Trading Update
Avingtrans (AIM: AVG), which designs, manufactures and supplies critical components, modules and associated services to the energy and medical sectors provides an update in respect of its financial year ended 31 May 2018.
The Group maintained the positive performance of the first half in the second half of the financial year and is pleased to report that full year results will be in-line with market forecasts.
Trading remains strong. The Group maintains a robust order book and order cover, including run rate business, as at 31st May is at 72% of revenue expectation for FY2019.
Net debt is marginally higher than previously anticipated, due to the investment of additional working capital following the acquisition of certain assets of Ormandy Group Limited, as reported in the Group's interim results.
Following the successful integrations of Hayward Tyler Group and Ormandy, the Company is pleased to report an improved margin mix and, as such, expects its profit in FY2019 to exceed previous expectations.
Contract Win
The Company is pleased to announce that it has been awarded a contract with a UK Government agency, worth circa £5m. The project is scheduled for completion during FY2020, split evenly over the next two years.
The UK Government agency, which is a new customer for Peter Brotherhood, has signalled that access to our large scale, world-class facility will give Avingtrans the opportunity to tender for further business.
The contract's implementation will utilise a combination of resources from both Peter Brotherhood and Metalcraft. The Board views this win as further justification for acquiring Hayward Tyler Group and demonstrates its successful integration.
Commentating on the contract win, Austen Adams, Managing Director of the Process Solutions division, said:
"We are delighted to secure a new and significant contract for Peter Brotherhood which, following the Hayward Tyler acquisition, is an important part of the Avingtrans group and gives the group significant opportunities to tender for new business in new markets."
Commentating on the contract and the trading update, Steve McQuillan, CEO, said:
"This is an excellent contract win for Austen and his team and it demonstrates the leverage that the group can exercise, by coordinating the efforts of the teams in different business units with complimentary capabilities. The Hayward Tyler and Ormandy integrations are going well and we look forward to updating shareholders at the time of the results in October."
Notice of Results
Avingtrans will publish results for the twelve months ended 31 May 2018 on 3 October 2018.
The management team will be hosting a presentation for analysts on the day of results at 9:30am at the offices of Newgate Communications, Sky Light City Tower, 50 Basinghall Street, London, EC2V 5DE.
Thanks for sharing AP-Invest! Plenty of patience needed with this one but sooner or later this will attract the market's attention
Ex-dividend tomorrow. Coming so long after the Interim results it may be a surprise to new holders to learn and with Final Results due in September there's a good chance of seeing an update or two in the summer months. I think we are overdue. The price of oil has strengthened and this should translate into increased demand for AVG's oil and gas service and equipment, courtesy of the HAYT acquisition. The new factory in Kunshan China is due to complete by the end of the financial year, May 31 next week. The expanded manufacturing and repair capability is expected to support "new product" introduction plans. Obviously the experience AVG acquired through Hayward Tyler will transition it into a market leader in this particular niche of engineering and extending life of nuclear facilities is only going to see increased demand going forward.
can't work this share out. Everytime it appears in Simon's column it nosedives!
*Continued* So, with the energy division�s cash profit margins on the rise � finance director Stephen King revealed to me that he sees potential to target a mid-teens margin in the longer term � I feel that an enterprise valuation to cash profit multiple of 10 times, representing a 20% discount to the sector average, is attractive. I have a target price of 275p. Buy. No position here, as of yet, but looks interesting. Thought I would post for shareholders to read...
Investor's Chronicle ' Playing by the New Rules' 09/03/2018 - 15/03/2018 Simon Thompson posts the following; 'Avingtrans on course' "The shrewd management team at Aim-traded Avingtrans (AVG:230p), a maker of critical components and services to energy, medical and industrial sectors and a constituent of my 2017 Bargain Shares portfolio, has been working its magic on last autumn�s acquisition of heavily indebted specialist engineer Hayward Tyler, a supplier of motors and pumps to customers in the nuclear, power generation and oil and gas sectors. They have already made �2.5m of annualized cost savings by removing duplicated head-office costs, restructuring the business and through natural wastage, and a further �1m of savings in the supply chain. This explains why analyst David Buxton at broking house FinnCap expects a sharp turnaround in Hayward Tyler�s performance, penciling in a second-half operating profit of �2.4m, a marked improvement on the �1.1m loss in the first half to end-November 2017. There is substance to his forecasts as Hayward Tyler has profitable operations in Vermont, in the US. There it is a top-rated supplier to the nuclear industry, providing a new geographic location for Avingtrans, which has a strong position at Sellafield where it has a lucrative 10-year contract worth �47m to provide waste storage containers for the Cumbrian nuclear power station. It�s been winning new business too, including $10m-worth (�7.2m) of contracts from Korea Hydro & Nuclear Power since the autumn. Moreover, the full benefits of cost savings will be seen in the 2018-19 financial year, when Mr. Buxton predicts Hayward Tyler can add an extra �2.3m in operating profit on annual sales of �64m. The US business will pay less tax too following the US government�s cuts in corporation tax rates. The contribution from Hayward Tyler and a solid performance from Avingtrans� existing businesses, which increased revenues by almost 15% in the first half, meaning that the company is on course to produce adjusted cash profits of �5.7m on revenues of �80m in the 12 months to end-May 2018 to lift pre-tax profits sevenfold to �2.2m. Moreover, after factoring in a sensible-looking 20% hike in revenues in the 2018-19 financial year, and taking into account further efficiency gains, FinnCap predicts cash profits could hit �8.1m next financial year to deliver pre-tax profits of �3.8m, about �400,000 higher than previous estimates. In other words, expect EPS to more than double from 4p to 9p. Shareholders can also expect a full-year dividend per share of 3.6p, rising to 3.8p in the 2018-19 financial year. So, with the energy division�s cash profit margins on the rise � finance director Stephen King revealed to me that he sees potential to target a mid-teens margin in the longer term � I feel tha
What an astute acquisition HT was for AVG. I guess this is one of those contracts that had been "shifted to the right" now taking centre stage.
Big contract win. No further details regarding HT's performance but presumably solid given the anticipated revenue for the latter half of the year.
Shareminator I am in agreement with your assessment but returning to 2.4-2.5 may have to be preceded by an encouraging statement with the Interim figures due next month. My earlier suggestion as to December 2017 SP proved too optimistic but it was made before the Final Results in September 2017 when the Chairman chose to add some words of caution as to the task ahead of them. In that respect the recent trading statement as to progress with integration and an improved trading outlook was welcome news.
Looked oversold a couple weeks back, no reason why it drifted as low as it did. The only reason I can see why there was such large selling would be an overhang following the HAYT acquisition. Perhaps a large shareholder wanted to cash in and take the loss on the chin? It doesn't look to have been a very smart move whatever the reason and now as you mention with the Interims due shortly plenty of attention is focused on AVG. We should be back to 2.4 - 2.5 following the first official news we've had in a long time. Expecting the debt issues which hungover HAYT throughout 2017 to have been addressed, banking covenants relaxed and the debt held significantly lower. The business will have grown throughout the second half of 2017 and AVG shareholders will no doubt benefit when they announce a strong outlook this year.
Being taken before interims
We have the Final Dividend payment to look forward to on the 8 December 2017. Interim results will be out end of February. It's been pretty quiet since HAYT was acquired, not one update concerning the lenders so presumably they have struck a new deal and paid the sums that were owed from the group cash balance. Expecting positive EBITDA in the first half boosted by the payments that were due to HAYT but had been delayed.
Hopefully your right!!!! The shareminator as my original shares have fallen over a cliff, following ELB'S??? joining him in Southbank to Specialist engineering[to join aim market] to Hayt backed up by finncap;s inflated values & hopefully not into Avg????
That was a well judged prediction poole and you have been proven correct thus far. The reaction to the Final Results and Dividend announcement were as perhaps expected muted. The excitement post period end with the acquisition of Hayward Tyler is the future organic growth of this company, especially considering the size of AVG's core remaining businesses and with oil prices remaining low. I was hoping to read more details about the combined synergies and the continuing growth during and since the acquisition was completed. We will need to be patient for that, here's my thoughts anyway The final dividend of 2.2 pence per share will be paid to holders up to 27 October 2017 and hit our accounts around the 8th December 2017, an early Christmas present but not if the share price continues to bob along at this level. Revenue from continuing operations was £22.7m and EBITDA was £0.7m Now these two figures alone did not justify AVG's market value pre-HAYT bid, they had released value through the disposal of Sigma returning value to shareholders and retaining cash on the books. The company's 'finger in many pies' policy does seem to be a strategically successful one and their current plays are exciting for a variety of reasons mentioned in the FY report. I won't add to speculation as to how well these will perform in the coming year or their perceived value to a rival looking to make acquisitions. The direction the company is taking looks well thought through. Valuing these ventures at such an early stage on their revenue isn't meaningful I believe, rather their growth potential and niche within the sector. However Hayward Tyler brings a list of impressive assets, not least the workforce and it's ongoing revenue generation which will significantly boost Group earnings by the Interims. On a PE ratio we don't appear to be trading on forward earning forecasts
Possible that the shares will remain volatile while weak former holders of HAYT look to exit. Avingtrans got a good business at a bargain price largely because the HAYT management during the last 18 months or so was cack handed and left the business exposed. There will inevitably be both exceptional merger and integration costs to come followed by some cost savings. As to where the AVG share price heads from here; important will be both what is said at the time of the AVG Prelims due towards the end of this month and likely to be followed by brokers reports which ought to be supportive as to the medium term. As to predicting share price I think on anticipation of future progress 270p is possible by Christmas with a further leg up once they start to deliver the goods. Any other thoughts?
Nice to hear from you guys, my shares popped up 2 days ago and I bought my first tranche of AVG today. Pretty volatile at the moment but expect once newsflow trickles in, refinancing here, more contracts secured there then value will be added. HAYT are being steered out of rough waters under the command of a better helm. Christmas predictions what do we think, too early? Bah humbug let's hear them :)
Powers to be at the respective companies, would make sure that this set of results is outstanding?? To show what a great move it was to become one. Will buy some more from my profits ready for the results AFC.💰
I forgot to ask as i had a right ding dong with them as i'm locked out of my phone banking because i haven't used it for so long, probably 10+ years . Might have to top up at this rate , why are we falling, is it the new shares.
Gosh, does that mean you can't trade till Fri? Not even by phone? Such a difference between the various platforms - almost a whole week
the_shareminator , i called barx today and they said the shares would be in my account Friday.
Hi Shareminator Mine are now showing (HL platform today). I'm going to hold AVG for the time being BTW. I didn't vote in the end in HTG, mainly because of the recapitalisation commentary in the Scheme doc.
Have any of the old HAYT shareholders received their AVG stock yet?