(Alliance News) - Avingtrans PLC on Wednesday reported a swing to pretax profit based on a lift in revenue during its recent financial year.
Shares in the company were trading up 2.6% at 449.00 pence each in London on Wednesday morning.
Avingtrans is an engineering company that provides components and systems for the energy, medical and industrial sectors. It operates a "pinpoint-invest-exit" strategy, improving undervalued assets in highly regulated global engineering markets before selling them to new parents.
In the year ended May 31, revenue hit GBP98.5 million, up 7.1% from GBP92.0 million the year prior.
The company swung to a pretax profit of GBP5.4 million in its recent financial year, from a GBP69,000 loss a year earlier.
Adjusted earnings before interest, tax, depreciation and amortisation jumped 79% year-on-year to GBP12.5 million from GBP7.0 million.
The company restated its figures for its previous financial year to account for its discontinued Peter Brotherhood Ltd business.
In March, Avingtrans sold the Peterborough, England-based turbine maker for GBP35.0 million, receiving net proceeds of GBP30.6 million before transaction costs. It initially purchased Peter Brotherhood in 2017, buying the company for GBP9 million from Hayward Tyler Group PLC.
UK-based safety company Booth Industries and Michigan, US-based Energy Steel Inc contributed "strongly" to the results, the company said. It noted a record order book for Booth, including the GBP36 million HS2 contract awarded in the period. Meanwhile, Avingtrans said nuclear engineering focused Energy Steel continues to "recover positively", recording a small profit for the full year.
After suspending distributions last year, due to the pandemic, the company reinstated payouts with a 4.0 pence per share dividend.
Avingtrans said it expects to declare interim and final dividends in financial 2022, as it re-commits to long-term shareholder returns.
Chair Roger McDowell said: "The group forged ahead despite continuing adverse impact from Covid-19 and we ended the year with record adjusted profits and a solid cash position. Once again, our pinpoint-invest-exit strategy has proved its worth with the successful sale of Peter Brotherhood delivering excellent returns for our shareholders."
By Scarlett Butler; scarlettbutler@alliancenews.com
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Avingtrans (AVG)