Last checked at 8 Sep 2010 07:00
8 September 2010 Avingtrans plc ("Avingtrans" or the "Group") Final Results for the Year Ended 31 May 2010
Avingtrans plc (AIM:AVG), which designs, manufactures and supplies critical components and associated services to the energy, medical, industrial and global aerospace sectors, today announces its results for the twelve months ended 31 May 2010.
Financial Highlights
* Turnover decreased by 24% to £28.6m (2009: £37.6m)
* Gross profit margin largely maintained at 26% (2009: 27%)
* PBT (pre warranty claim and amortisation of intangibles from business
combinations) decreased to a loss of £0.3m (2009: £2.0m profit)
* EBITDA decreased to £2.5m (2009: £4.1m)
* Fully diluted, adjusted1 EPS of 3.0 pence per share (2009: 6.2 pence per
share)
* Cash generated from operations, at £3.8m (2009: £0.4m)
* Net debt reduced to £7.8m (2009: £10.1m)
* Gearing reduced to 36% (2009: 48%)
1 -fully diluted earnings per share adjusted to add back amortisation of intangibles from business combinations and exceptional items
Operating highlights * Aerospace: * + Multiple long term agreements signed - eg: Eaton (£8m), Meggitt (£2m), Moog (£1m) + Sigma UK formed as B&D's transition is now complete - Sigma is now one business + Sigma China performance significantly improved over prior year + Warranty claim settled with former owners of B&D Patterns for £0.9m (net of costs) * Energy and Medical * + Metalcraft signed £8m, 3 year contract with Cummins for supply of generator frames + New contract signed with Siemens Healthcare for MRI equipment, including new products + Sellafield long term contract signed for £1.5m for vitrification plant + Metalcraft China established and commenced operations + Crown completed £1.25m delivery of new motorway signage products to Balfour Beatty * Industrial Products * + Jena-Tec successfully installed £0.5m initial actuation package to a major European Utilities Group + New contract signed for specialist production support services worth £ 0.6m + Cyclic recovery well underway in all markets, especially noticeable in Germany + Jena-Tec China office established
Commenting on the results, Roger McDowell, Chairman, said:
"At the half year, I said that I believed we had reached a nadir in our fortunes and this has proven to be the case. Our last financial year was distressed, though the second half was stronger - albeit well below peak performance - and I am able to report a result in line with revised market expectations. Our strategic direction has been confirmed by recent business wins with a variety of blue chip customers and we expect this new business to underpin an improving performance over the next 12 months, whilst cautioning that major customers' supply chains are not yet restored to full capacity."
Contacts:Avingtrans plc Tel. 01159 499 020 Steve McQuillan, CEO Stephen King, Finance Director FinnCap Ltd Tel. 020 7600 1658 Marc Young/ Henrik Persson - Corporate Finance Brian Patient / Steve Norcross - Corporate Broking Hansard Communications Tel. 020 7245 1100 John Bick Guy McDougall About Avingtrans plc:
Avingtrans has become a significant organisation in the design, manufacture and supply of critical components and associated services to global industrial markets from three divisions: aerospace, energy and medical and industrial products.
Aerospace
Sigma Precision Components- UK and China
Sigma UK (formerly B&D Patterns) is a market leader in rigid and flexible pipe assemblies and components for prestigious aerospace customers such as Rolls Royce, Messier Dowty and Meggitt. Sigma China manufactures precision prismatic components for the aerospace industry from its purpose-built facility in Chengdu, China. With offices in the UK and China, the business offers a range of services to the global aerospace market.
C&H Precision Finishers Ltd - UK
C&H provides final polishing and specialist finishing on aeroengine turbine blades, compressor blades and vanes for the power generation industries. Operating from two strategically located centres to offer a local service to the UK aerospace industry.
Energy and MedicalMetalcraft - UKand China
Provider of safety-critical equipment for the energy, medical, science and research communities worldwide, specialising in precision pressure and vacuum vessels and associated sub-assemblies and systems.
Crown International- UK
Design and manufacture of market leading pole and enclosure systems, known as the `Crown Pole' for roadside safety cameras, as well as rail track signalling gantries and roadside signage poles for motorways and major trunk roads.
Industrial products
Jena-Tec - Germany, UK and USA
Jenaer Gewindetechnik designs and manufactures precision ballscrews and related products from its plant in Jena, Germany. Ballscrews are critical in the operation and precise movement of (CNC) computer controlled machine tools and precision instrumentation.
Jena Rotary Technologymarkets the Jena-Tec product range of precision ballscrews and operates a rapid repair service for UK ballscrew users. JRT designs and manufactures the Boneham & Turner (B&T) range of spindles and acts as the UK sales and service centre for GMN (Spindles) and a range of other OEMs.
Jena-TecInc providesa sales and support operation for the Jena-Tec product range throughout North America.
2010 Preliminary statementChairman's statement
Our 2010 financial year coincided with the biggest downturn in engineering in decades and component manufacturing businesses such as Avingtrans bore the brunt of the squeeze. Unsurprisingly, therefore, we had a very poor year, though we have met revised (albeit modest) market expectations. As previously advised our second half performance showed improvement and provides a platform to build on for the new financial year.
With the recession adversely affecting all of our markets, our on-going programme of cost reduction and control was vital in sustaining the business through difficult times. We believe that we have effectively preserved the skills needed to capitalise on the upturn and to meet the needs of our OEM partners as they restore volume through their global supply chains. Our positive efforts in improving our capabilities have been evidenced by the renewal or initiation of contracts with blue chip businesses like Siemens (MRI imaging), Eaton (aerospace components and pipes) and Cummins (generator frames). Our order book is showing a consistently improving trend and gives us more confidence about the current financial year. However, this is not to suggest that markets have fully recovered. Our new business wins are the key to improving our performance and our greatly improved relationships with major customers will continue to bear fruit as we grow once again. The recovery cycle will continue to be variable across our three divisions and will be dependent on the activity of our customer base. The quality of this base continues to give us confidence that we are well-placed to take advantage any upturn in economic activity.
As noted above, our second half performance was substantially better than in the first half, though Group revenues are down £9m year on year, due to the marked slowdown in orders in the period. Our manufacturing and design capability enhancements stood us in good stead, bringing new business in the Energy, Aerospace and Transport markets, for example. Headcount was trimmed a little further in the second half, though the bulk of the reductions were completed earlier and employee costs were held under tight control, including on-going salary reductions at a senior management and Board level.
The hard work performed on organisational efficiency over the last two years meant the difference between crisis and catastrophe, so we are pleased to have come through this very severe recession bloodied, but unbowed and with cautious optimism about our strong market positions and brands. Despite the downturn, we have invested in new business locations for Metalcraft and Jena-Tec in China and completed the transition of B&D Patterns to become Sigma UK, with the newly integrated precision aerospace component and pipe supplier being increasingly recognised as a strategic choice for top tier OEMs. As poor as the last year was, it would have been far worse if we had not pushed forward with new and enhanced customer relationships that have already begun to bear fruit and will further blossom in the coming years. In particular, our work on quality and delivery excellence and vertical integration activities has allowed us to win contracts that would previously have been out of reach - for example the power station actuation package win at Jena-Tec.
In summary, we are targeting the right growth markets and developing excellent supply partnerships with the market leaders in those sectors. This allows us to bring broader products and services to those customers from our specialist niches, which, coupled with our deeper manufacturing and design skills, means we are ready to take maximum advantage of positive market indicators, as they arise.
Thoughts of M&A activity were naturally muted by the downturn, but we continue to believe that opportunities for complementary acquisitions will present themselves as the economy rejuvenates. Our strategy should enable us to enhance shareholder value and our market positions will allow us to come out of the current cycle stronger than many of our competitors, as we develop businesses in new markets with enhanced value due to widening design and integration capabilities. We are determined to bring a renewed focus to the group over the next 18 months, intending to favour the development of our core businesses over others.
Our performance throughout this difficult period depended heavily upon our people and it is their dedication, skill and hard work that have brought us safely through the downturn. I would like to express my heartfelt thanks to them for their continuing commitment to Avingtrans.
R S McDowellChairman8 September 2010Business ReviewGroup Performance
Revenue: Full year Group revenue was 24% less than the prior year, coming in at £28.6m (2009: £37.6m). The revenue reduction was across the board, all main markets having seen some impact of the downturn. Only Crown bucked the downward trend due to the significant contract for variable motorway signage for Balfour Beatty. However, the second half Group revenue did show improvement from the first half, up by £1.6m to £15.1m.
Profit: Despite the severe reduction in revenue, gross profit margins were largely maintained at 26% (2009: 27%) whilst operating profit was significantly down at £0.8m (2009: £2.4m). Tight cost control continued throughout the year in response to demand reductions. Loss before tax and amortisation (and the Sigma UK warranty claim which had a positive impact of £0.9m) was £0.3m (2009: £2.0m profit) and EBITDA was eroded to £2.5m (2009: £4.1m).
Earnings Per Share (EPS): Adjusted diluted earnings per share, for the period ended 31 May 2010, was 3.0p (2009: 6.2p) based on 25.5m (diluted weighted average) shares. Basic and diluted EPS were 2.4p (2009: 5.1p).
Funding and Liquidity: The net cash flow from operations was significantly better at £3.8m (2009: £0.4m). Net indebtedness at year end was £7.8m, significantly lower than at the prior year end (2009: £10.1m). Balance sheet gearing was 36.1%, down from 48.2% at 31 May 2009. In addition, continued investment in the business of £1.2m shows that whilst we did not come to a stop during the recession, capital investment was curtailed.
Taxation: The effective rate of tax was 29.7% (2009: 38.3%) after taking account of the Sigma UK warranty claim.
Dividend: The Board continues to support a progressive dividend policy, but we still believe that it is prudent to preserve cash in the business at present and, consequently, recommend that no final dividend should be paid (2009: Nil p per share). Looking forward, the Board will keep the dividend position under review, taking account of the on-going changes in trading position in our markets.
Strategy
Avingtrans is a precision engineering group, operating in differentiated, specialist niches in the supply chains of many of the world's best known engineering OEMs, for example: Rolls Royce, Siemens, Cummins, E.ON, etc. Our strategy is to build market-leading niche positions in our defined sectors, namely, the medical, energy, aerospace and environmental markets. The three strategic thrusts remain unchanged:
* Customers: developing our key accounts and partnering or acquiring assets to provide customers with integrated product and service offerings * Channels: developing new channel partners in new territories and markets with existing product capabilities * Capabilities: strengthening core group know-how in design and manufacturing to reduce costs and deepen our value added to our customers.
Each of the three main group businesses - Metalcraft, Jena-Tec and Sigma - now has the capability to engineer products in Europe and produce those products partly or wholly in China, allowing us to access low cost sourcing at low risk for our customers, as well as positioning us robustly in the development of the Chinese and Asian markets for our products. Despite the recession, during the last year we have established Metalcraft and Jena-Tec businesses in China and integrated Sigma UK in the UK and Sigma in China into one business unit. Strong performances by the smaller group businesses - C&H and Crown - have supported our global aims.
We have increased our capability to manage outsourced manufacturing programmes of increasing complexity with the likes of Eaton, E.ON and Cummins, thus accessing business of greater duration and value, with the prospect of higher sales and reduced annual volatility.
Operations
Aerospace Division
The second half stabilised in the Aerospace Division, following the first half reduction year on year, as Sigma China continued to make progress towards overall breakeven, periodically making profit and producing a more consistent monthly output pattern. B&D (renamed Sigma UK) also began to see initial returns from recent new business wins. C&H also saw some modest new business wins supporting the second half, with the promise of improving sales in the new financial year. Overall civil aerospace market conditions improved remarkably, with the global airline industry now expecting to make a profit in 2010, according to IATA and this has already fed into some increased confidence in the manufacturing supply base. Nevertheless, our Aerospace division revenue declined by 10% in the year on the back of the weaker order intake in the first half.
As previously advised, the decline in global aerospace curtailed our investment activities in Sigma China, though some smaller capital expenditure cases have now been approved as the picture brightens once more. Sigma China, although not quite break-even for the whole year, improved its performance markedly and should continue to improve as capacity expands further and now that we have attained critical mass, efficiencies naturally follow. The £1m long term agreement signed with Moog earlier in the year is expected to be the first of a number with key aerospace customers.
After the year end, B&D Patterns formally changed its name to Sigma Precision Components UK Ltd (Sigma UK, for short). This change was made in recognition of the fact that B&D has now completed its transition to become a strategic supplier to aerospace OEMs in our chosen niche sectors and that the UK and Chinese businesses are increasingly operating as one international unit. Our customers tell us that the emerging unified business is working in exactly the way they want, to create a global "derisked" low cost supply chain for them. Recent long term agreements signed with the likes of Eaton and Meggitt (worth a combined £10m over 5 years) are testament to the fact that we are now considered to be a suitable strategic partner for the future. Sigma UK now has an enviable quality reputation and is developing a strong design for manufacture and low cost transition capability that is exciting the top tier OEMs. With the legacy issues at B&D finally resolved last year, we are anticipating renewed vigour from the fully integrated Sigma business in 2011.
As noted in the first half, the resolution of the warranty claim in July 2009 with the former owners of B&D saw the return of £932k after costs.
C&H saw some softening of demand, but came through the year relatively unscathed, as earlier cost controls and headcount reductions stabilised the business at an acceptable level and some pick-up in sales in the second half was assisted by contract extensions with a number of customers. The Cheltenham facility has had a more turgid time than the main business in Nottingham, but both have continued to provide valuable service to our major customers and the business expects to further expand its range of services in the forthcoming year.
Energy and Medical Division
The Energy and Medical Division was badly affected overall by the recession, with the combination of the forecast lower business level from Siemens on the Medical side being compounded by a much slower build up in the new contract with Cummins. Metalcraft had a very poor year in consequence, as specific project work also dried up in the same period and nuclear energy projects were delayed due to matters beyond our control. The new year promises to show some improvement, however, with a new expanded contract with Siemens and an accelerating build up of volume on the Cummins contract continuing. Crown had a better year than 2009, thanks to the initial contract in the new field of variable motorway signage for Balfour Beatty. Overall, although there was a modest pick-up in second half output, the division suffered a 30% reduction in revenue year on year.
Through this relatively gloomy year at Metalcraft, we have good reasons to expect steady improvement:
Medical: the Siemens relationship has improved markedly, with an updated contract being recently signed including provision for new product supply over the next two years. Siemens remains the market leader in the magnetic resonance imaging (MRI) sector and this is therefore very good news. We have also secured high field MRI contracts with several other customers, underlining the on-going expertise of Metalcraft in this area.
Power Systems: during the year, we signed the £8m, three year contract with Cummins for generator frames and volumes of this product are now finally being shipped after a rather protracted start beyond our control which negatively affected Metalcraft's performance in the year. In addition, it is clear that Cummins is increasing its own business forecasts, which should feed through to increased business for us in due course. Tentative first steps have been taken to secure business with other customers in this sector.
Oil and Gas: whilst there was no repeat in the period of the £4m floating production system project with Exterran, we did successfully complete a smaller, £0.6m contract for them.
Nuclear: the pace of progress is frustratingly slow for all manufacturers in the sector, but we did secure a number of small projects with Costain, the balance of which will be delivered this year and we recently signed the £1.5m framework agreement with Sellafield for vitrification plant components. Looking forward, as well as being approved by AREVA for nuclear new build supply, Rolls Royce has also qualified us as a potential supplier to Westinghouse and we are building up our nuclear industry profile.
China is gathering momentum as a focus of development effort for Metalcraft, with part of the agreement with Siemens being to supply them with products from our Chengdu facility, starting in 2011.
In April this year, we were delighted to launch our Fenland Engineering Training School and the facility has accepted its first apprentices.
Crown International successfully delivered its first £1.25m order for the new variable signage poles to Balfour Beatty - currently being integrated into the M4 motorway upgrade project. A number of follow-on projects are in prospect. The combination of the recession and some negative market sentiment meant that the safety camera product volumes were subdued in the year, but our reliance on the UK market is largely limited now to replacement and servicing the existing base in any event. Export prospects for this product are brighter.
Industrial Products Division
After a particularly weak first half, driven by the weakness of the global machine tools market, Jena-Tec rallied in the second half, to finish the year 27% down on sales versus the previous year (having been 39% down at the halfway mark). This was a creditable performance in the circumstances and ahead of its competition over the year. Cyclic recovery is now well underway in all of Jena-Tec's markets in a familiar post-recession pattern.
Accordingly, whilst the part time working initiative in Germany continued throughout the year, this is now coming to an end, as markets recover. Earlier headcount reductions in the UK succeeded in keeping costs under control in the second half and we have now begun to take on new employees again in the UK.
The safety critical actuation system upgrade order (£0.5m) was successfully completed and installed in a conventional power station and this success should lead to further orders in the new financial year. A marketing campaign is underway to promote the new solution, which represents a major strategic step forward for Jena-Tec.
In a further strategic coup, Jena-Tec secured a £0.6m order with a Tier 1 Automotive supplier to upgrade specialist engine production facilities, building on the enabling acquisition of Moss Group Automation in 2009. This order will be completed before the end of the next financial year. The breadth of service and support solutions available to Jena-Tec's customers has now taken us into a different category of supply which we will enhance further going forward.
Miniature ballscrew production continues from strength to strength, with further medical OEMs coming on board as customers in the last 12 months and this capability will be used more widely, as we seek to penetrate the aerospace sector for ballscrews also.
With increasing enquiries and orders coming from Asia and China in particular, we are establishing a Chinese presence for Jena-Tec, meaning all three divisions are now present in China, underlining the importance of this burgeoning market to the group.
People
With the addition in the year of Dr Graham Thornton as a Non-Executive Director, the Board is complete and there have been no other changes at Board or senior management level.
We are strengthening management whenever an opportunity presents itself, consistent with strategy and we have made good strides forward with the addition of skilled engineering and technical personnel across a number of group businesses. With the successful opening of the engineering school at Chatteris, we are also confident that we can grow the skills needed for the future of our business and for the local economy there.
Outlook
Now that the worst of the severe global recession is behind us, we can look forward to some improvement in performance, assuming that there is no pronounced "double dip" effect over the next year. Although economic progress remains patchy, we can now see improving order books for most of our businesses. We will continue to remain vigilant on the cost side of the business, to ensure that we do not suffer unduly from any remaining market perturbations.
Our clear strategic direction has enabled us to win important new contracts that will increasingly support our results in this financial year and beyond. The quality of our customer base should ensure that we are better than averagely able to take advantage of the on-going world economic recovery. Therefore, we expect steady improvement in our financial performance for the coming year, assuming macroeconomic trends remain positive.
Our strategy to focus on differentiated, highly engineered product niches offers some limited degree of protection to cyclical markets. As stated before, we remain well placed to benefit from structural changes in our markets and to regrow as global industrial markets recover, with the increasing brand strength of Metalcraft, Sigma and Jena-Tec promising to be positively decisive in the years ahead, even more so once we are able to support our core future business though appropriate M&A activity.
Roger McDowell Steve McQuillan Stephen King Chairman Chief Executive Finance Director 8 September 2010 8 September 2010 8 September 2010
Consolidated Income Statement
for the year ended 31 May 2010
Year to Year to 31 May 31 May 2010 2009 £'000 £'000 Revenue 28,578 37,559 Cost of sales (21,124) (27,427) Gross profit 7,454 10,132 Distribution costs (806) (955) Administrative expenses (6,488) (6,635) Share based payment expense (19) 88 Warranty claim 932 - Restructuring costs (145) (71) Amortisation of intangibles from business (137) (137)combinations Operating profit 791 2,422 Finance income 11 2 Finance costs (332) (595) Profit before taxation 470 1,829 Taxation 137 (701) Profit for the financial year 607 1,128 Earnings per share : Total and continuing operations - Basic 2.4p 5.1p - Diluted 2.4p 5.1p
Consolidated statement of comprehensive income
Year to Year to 31 May 31 May 2009 2008 £'000 £'000 Profit for the year 607 1,128 Other comprehensive income for the year, net of tax Exchange differences on translation of (8) 338foreign operations Total comprehensive income for the year 599 1,466
Consolidated cash flow statement
for the year ended 31 May 2010
Note Year to Year to 31 May 31 May 2010 2009 £'000 £'000 Operating activities Cash flows from operating activities 3,756 356 Finance costs paid (332) (597) Income tax repaid/(paid) 94 (145) Net cash inflow/(outflow) from operating 3,518 (386)activities Investing activities Finance income 11 2 Purchase of intangible assets (448) (420) Purchase of property, plant and equipment (864) (2,022) Proceeds from sale of property, plant and 76 19equipment Net cash used in investing activities (1,225) (2,421) Financing activities Dividends paid - (132) Repayments of borrowings (667) (642) Repayments of obligations under finance leases (1,226) (1,103) Proceeds from issue of ordinary shares - 3,654 Borrowings raised 580 1,271 Net cash (outflow)/inflow from financing (1,313) 3,048activities Net increase/(decrease) in cash and cash 980 241equivalents Cash and cash equivalents at beginning of year (2,255) (2,534) Effect of foreign exchange rate changes (4) 38 Cash and cash equivalents at end of year (1,279) (2,255)
Cash generated from operations:
for the year ended 31 May 2010
Year to 31 Year to 31 May 2010 May 2009 £000 £000 Continuing operations Profit before income tax 470 1,829 Adjustments for: Depreciation 1,387 1,434 Amortisation and impairment of intangible 340 264assets Profit on disposal of property, plant and (51) (9)equipment Finance income (11) (2) Finance expense 332 595 Share based payment charge/(credit) 19 (88) Changes in working capital Decrease/(increase)in inventories 174 (255) Decrease/(increase) in trade and other 1,440 (1,845)receivables (Decrease) in trade and other payables (357) (1,584) Other non cash charges 13 17 Cashflows from operating activities 3,756 356 Consolidated balance sheetat 31 May 2010 2010 2009 £'000 £'000 Non current assets Goodwill 10,242 10,242 Other intangible assets 2,050 1,941 Property, plant and equipment 10,090 11,308 Investment property 600 - Deferred tax 39 38 Available for sale financial assets 219 219 23,240 23,748 Current assets Inventories 6,634 6,952 Trade and other receivables 7,479 8,914 Current tax asset 64 321 Cash and cash equivalents 1,097 634 15,274 16,821 Total assets 38,514 40,569 Current liabilities Trade and other payables (5,849) (6,323) Obligations under finance leases (810) (1,247) Borrowings (3,040) (3,543) Current tax liabilities (479) (759) Total current liabilities (10,178) (11,872) Non-current liabilities Borrowings (3,600) (4,264) Obligations under finance leases (1,483) (1,729) Deferred tax (1,413) (1,436) Deferred consideration (154) (200) Total non-current liabilities (6,650) (7,629) Total liabilities (16,828) (19,501) Net assets 21,686 21,068 Equity Share capital 1,274 1,274 Share premium account 9,534 9,534 Capital redemption reserve 814 814 Merger reserve 402 402 Translation reserve 628 636 Other reserves 180 180 Retained earnings 8,854 8,228 Total equity attributable to equity 21,686 21,068holders of the parent
Consolidated statement of changes in equity
at 31 May 2010
Share Share Capital Merger Trans- Other Retained Total Capital premium redemp- reserve lation reserves earnings Account account tion reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 At 1 June 2008 882 6,272 814 402 298 180 7,320 16,168 Dividends paid - - - - - - (132) (132) Share-based - - - - - - (88) (88) payments New share 392 3,405 - - - - - 3,797 issue Costs of share - (143) - - - - - (143) issue Transactions 392 3,262 - - - - (220) 3,434 with owners Profit for the - - - - - - 1,128 1,128 year Other comprehensive income Exchange rate - - - - 338 - - 338 gain Total - - - - 338 - 1,128 1,466 comprehensive income for the year Balance at 31 1,274 9,534 814 402 636 180 8,228 21,068May 2009 At 1 June 2009 1,274 9,534 814 402 636 180 8,228 21,068 Dividends paid - - - - - - - - Share-based - - - - - - 19 19 payments Transactions - - - - - - 19 19 with owners Profit for the - - - - - - 607 607 year Other comprehensive income Exchange rate - - - - (8) - - (8) loss Total - - - - (8) - 607 599 comprehensive income for the year Balance at 31 1,274 9,534 814 402 628 180 8,854 21,686May 2010
Notes to the preliminary statement
31 May 20101. Segmental analysisYear ended 31 May Aerospace Energy Industrial Unallocated Total2010 and Products Central Medical items £'000 £'000 £'000 £'000 £'000 Revenue 9,632 12,177 6,769 - 28,578 Operating profit 132 (58) 83 634 791(loss) Net finance costs (321) Taxation 137 Profit after tax 607 Segment non-current 9,641 9,490 3,854 255 23,240assets Segment assets 14,640 15,662 7,895 317 38,514 Segment liabilities (4,513) (4,666) (2,790) (4,859) (16,828) Net assets/ 10,127 10,996 5,105 (4,542) 21,686(liabilities) Year ended 31 May Aerospace Energy Industrial Unallocated Total2009 and Products Central Medical items £'000 £'000 £'000 £'000 £'000 Revenue 10,716 17,509 9,334 - 37,559 Operating profit (73) 1,583 1,051 (139) 2,422(loss) Net finance costs (593) Taxation (701) Profit after tax 1,128 Segment non-current 10,098 9,520 3,890 240 23,748assets Segment assets 14,917 17,058 8,250 344 40,569 Segment liabilities (5,243) (5,687) (3,323) (5,248) (19,501) Net assets/ 9,674 11,371 4,927 (4,904) 21,068(liabilities) Geographical 2010 2009 2010 2009 Revenue Revenue Non-current Non-current assets assets £'000 £'000 £'000 £'000 United Kingdom 22,251 29,163 18,176 18,655 Europe 5,176 7,829 3,250 3,264 North America 1,559 1,407 5 7 Rest of the 750 616 1,809 1,822World Eliminations (1,158) (1,456) - - 28,578 37,559 23,240 23,748 The Group has revenue of £3,545,000 (Aerospace) and £4,171,000 (Energy &Medical) with single external customers which each represent more than 10% ofrevenue. 2. Taxation 2009 2009 £'000 £'000 Current tax (113) 283 Deferred tax (24) 418 (137) 701 3. Earnings per share 2010 2009 No No Weighted average number of shares - basic 25,480,577 21,933,317 Warrant/ Share Option adjustment 44,478 6,961
Weighted average number of shares - diluted 25,525,055 21,940,278
£'000 £'000 Earnings attributable to shareholders 607 1,127 Share-based payments 19 (88) Amortisation of intangibles 137 137 Sigma deferred consideration release - (201) Withdrawal of IBA's - 383 Adjusted earnings attributable to shareholders 763 1,358 Basic earnings per share 2.4p 5.1p Adjusted basic earnings per share 3.0p 6.2p Diluted earnings per share 2.4p 5.1p Adjusted diluted earnings per share 3.0p 6.2p
4. Preliminary statement
This preliminary statement, which has been agreed with the auditors, was approved by the Board on 8 September 2010. It is not the Group's statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The statutory accounts for the two years ended 31 May 2010 and 2009 received audit reports which were unqualified and did not contain statements under s498 (2) or (3) of the Companies Act 2006. The statutory accounts for the year ended 31 May 2009 have been delivered to the Registrar of Companies but the 31 May 2010 accounts have not yet been filed.
5. Annual report and Accounts
The Report and Accounts for the year ended 31 May 2010 will be available on the Group's website www.avingtrans.plc.uk on or around 21 September 2010. Further copies will be available from the Avingtrans' registered office:
Precision House, Derby Road, Sandiacre, Nottingham, NG10 5HU
6. Annual General Meeting
The Annual General Meeting of the Group will be held at The Holiday Inn, Bostocks Lane, Sandiacre, Nottingham NG10 5NL at 10.00 a.m. on 13 October 2010.
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