(Alliance News) - Avingtrans PLC on Wednesday reported a "record" annual performance, while the outlook remains confident despite macroeconomic headwinds.
Avingtrans designs, makes and supplies equipment and services to the energy, medical and industrial markets.
Revenue for the year to May 31 came in at GBP105.5 million, up 34% on the year before. This came from 11% organic growth, and a full-year impact from Hayward Tyler Group PLC, which was bought in September 2017 for GBP29.5 million.
Avingtrans posted pretax profit of GBP3.1 million for the year, swung from a GBP4.5 million loss the year before. The prior year was hit by a rise in amortisation as well as restructuring and acquisitions costs related to the Hayward Tyler deal.
On an adjusted basis, stripping out exceptional costs, Avingtrans' pretax profit more than doubled, to GBP5.3 million from GBP2.4 million.
The final dividend is 2.4 pence per share, taking the year's total to 3.8p, up 5.6% from the 3.6p paid a year before.
"It has been a record year for the group, in terms of orders, revenue and profit, reinforced by the deft execution of our now well-proven Pinpoint-Invest-Exit strategy," said Chair Roger McDowell.
"The former Hayward Tyler Group businesses performed very well in their first full year with the group and the Ormandy turnaround produced a solid, if modest profit in its first full year since acquisition in February 2018."
Energy revenue was up 36% to GBP93.4 million, boosted by both Ormandy and HTG, and Avingtrans said aftermarket performance is continuing to improve across all areas. In Medical, revenue climbed 16% to GBP12.1 million, as Avingtrans looks to new markets.
"We continue to concentrate on aftermarket opportunities, servicing end-user customers with comprehensive solutions, resulting in good growth and strong prospects. The nuclear life extension and decommissioning arenas are fertile ground for us, as demonstrated by contract wins in the period worldwide," continued McDowell.
"Other market areas are also proving fruitful, such as renewable energy, and a more stable oil and gas environment has seen us win important contracts in that sector. Brexit and tariff wars are unwelcome distractions for the group, but they will not cause us to deviate from our well-planned course."
"Despite the chill in the macroeconomic air, we remain quietly confident about our prospects in both Energy and Medical, with our strong balance sheet allowing us to be both agile and resilient. Recent order wins and our pipeline of opportunities underpin that outlook," he concluded.
Avingtrans shares were 0.6% lower on Wednesday morning in London at 238.50 pence each.
Avingtrans (AVG)