(Alliance News) - Avingtrans PLC on Wednesday said higher order intake drove revenue growth for the first half of its financial year ending May 31.
The Cambridgeshire, England-based company which designs and supplies components and services to the energy, medical and industrial sectors said revenue jumped 30% to GBP65.2 million in the half-year ended November 30, from GBP50.0 million the year before, in line with expectations.
Its Advanced Engineering Systems division was the main driver in revenue growth to its strong order intake and strategic acquisitions, Avingtrans said.
Pretax profit rose 3.0% to GBP3.4 million from GBP3.3 million in the first half of financial 2023.
The company's interim dividend was reduced by 5.3% to 1.8 pence per share from 1.9p in the corresponding six months a year ago.
Looking ahead, Avingtrans said that whilst ongoing disruptions in supply chains "remain a primary uncertainty", it believes that the situation will "gradually ease looking forward."
"Inflationary pressures continue to impact our businesses, but we are actively working to mitigate these risks, maintaining stable margins through considerable proactive efforts by our business units," it added.
Chair Roger McDowell said: "We have solid visibility over [second half of financial 2024] revenue and profits, thanks to a strong order intake and timely contract revenue recognition. Additionally, there are no destocking issues, since group products are "make to order". Thus, the board continues to be confident about our expectations for the full year and views the future positively."
Shares in Avingtrans rose 5.1% at 362.75 pence each in London on Wednesday morning.
By Sabrina Penty, Alliance News reporter
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