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LONDON (Alliance News) - Avingtrans PLC on Wednesday said its pretax profit fell in the year to the end of May due to customer destocking in its aerospace arm in the first half which hit revenue in combination with lower oil and gas sector orders, though the company did hike its dividend payout.
The company, which makes components and modules for the aerospace, energy and medical sectors, said its pretax profit fell to GBP1.9 million from GBP2.5 million in the year to the end of May, primarily due to lower revenue and a weaker gross margin.
Revenue fell to GBP57.8 million from GBP60.3 million in the financial year, hit by customer destocking in its aerospace business in the first half, which stabilised in the second. The group has completed the restructuring of its aerospace business and closed down its site in Derby, but in the half did win contracts from Airbus and Sonaca.
It has also completed the restructuring of its energy and medical divisions, where revenue was flat due to weaker oil and gas sector orders. The group said its losses before interest and tax in energy and medical were reduced significantly in the year.
Avingtrans said it will pay a final dividend of 2.0 pence per share, bringing its total dividend for the year up to 3.0p, up from 2.7p a year earlier.
"As previously communicated, the oil price collapse took its toll on group results and we were further buffeted by aerospace customer destocking in our first half," said Chairman Roger McDowell.
Shares in Avingtrans were up 6.5% to 112.925 pence on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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