Avingtrans Regulatory News (AVG)

9 Feb 2006 07:00

Embargoed: 0700hrs, 9 February 2006 Avingtrans Plc ("Avingtrans" or the "Company") Interim Results for the Six Months Ending 30 November 2005 Highlights Six months Six months Change to 30 to 30 November November 2005 2004 Turnover ‚£15,701,000 ‚£7,929,000 +99% EBITDA ‚£1,983,000 ‚£989,000 +101% Profit before tax ‚£1,168,000 ‚£559,000 +109% Earnings per share before goodwill 7.0p 6.0p +16.6% Dividend 0.5p - * Highest level of first half order intake, turnover, profitability, net assets and earnings per share since joining AIM in June 2002 * Performance at C&H and Jena exceed management expectations * Stainless Metalcraft delivers record numbers of MRI scanner bodies and components * Slower sales and earnings at Crown after delayed Government report on speed cameras. Improvement anticipated in second half * Extended trials for vehicle occupancy detection camera housing Ken Baker, Chairman, commented,"All divisions of the Company with the exception of Crown have traded to orabove expectations in the period with C&H, Jena and Stainless Metalcraftdeveloping strong forward order books.I am pleased to note the continuation of this positive trend in the second halfof the current year."For further information please contact,Ken Baker, ChairmanStephen King, Finance DirectorAvingtrans PlcAdam Reynolds/Ben SimonsHansard CommunicationsTel. 020 7245 1100Chairman's StatementI am pleased to announce the results of Avingtrans Plc for the six monthsending 30 November 2005.The period was largely concerned with managing our continuing operations,developing new trading links at home and abroad, investing in and upgrading ourplant and manufacturing systems and exploring new opportunities for the future.No acquisitions were completed during the period although a number of companiesthat are of interest continued to be reviewed.Demand for the Group's products was generally strong throughout the period.Stainless Metalcraft delivered a record number of MRI scanner bodies andcomponents and completed the delivery of a significant order for the EUscientific research community. Order intake and backlog continued at highlevels. Sales and earnings at C&H, our aerospace component finishing facility,and at Jena, manufacturers of new and replacement ballscrew actuators andspindles for the medical, aerospace and machinery industry exceeded managementexpectations. However, sales and earnings were below expectations at Crown, ourroad speed camera pole manufacturer, where the Governmental report on speedcameras slowed traditional UK speed camera installations for some months.As a consequence of the above, the Company recorded the highest level of orderintake, turnover, profitability, net assets and earnings per share sincejoining AIM in June 2002.Financial performanceTurnover for the six months ended 30th November 2005 was ‚£15.7 million (2004: ‚£7.9 million) an increase of 99%. Earnings before interest, tax depreciation andgoodwill amortisation (EBITDA) was ‚£1,983,000 (2004: ‚£989,000) an increase of101%.Operating Profit for the period was ‚£1,358,000 (2004: ‚£676,000) an increase of109%. Profit before tax for the period increased 109% to ‚£1,168,000 (2004: ‚£559,000).The Company had a positive cash flow from operations during the period of ‚£987,000 (2004: ‚£1,384,000). During the period, the Company made bank debtrepayments of ‚£302,000. The net debt at 30 November 2005 was ‚£4,584,000 (2004:‚£5,114,000), with gearing reduced to 41.5% (2004: 54.7%).An exchange rate gain of ‚£52,000 (2004: ‚£64,000) was recorded through thereserves in the period. Earnings per shareEarnings per share, for the period ended 30 November 2005, before goodwillamortisation was 7.0p (2004: 6.0p) a 16.6% increase. Basic earnings per sharewas 5.7p (2004: 4.8p) and fully diluted earnings per share was 5.3p (2004:4.8p), increases of 18.7% and 10.4% respectively.The weighted average number of Ordinary shares in issue during the period was14,262,086 (2004: 7,998,268).DividendThe Board has agreed a dividend of 0.5p for the half year to be paid on 12 May2006 to shareholders on the register at 7 April 2006.Six months reviewStainless Metalcraft continued to strengthen its position as a leading supplierof MRI scanner bodies to the international MRI scanner industry being appointeda tier one supplier to its major customer, Siemens. Deliveries of MRI scannerbodies during the period were at record levels. Significant developments werealso made on projects for the EU and UK research and scientific community withdelivery of high integrity components for the CERN nuclear fusion project inSwitzerland, projects for Rutherford Appleton Laboratories in the UK and anunderwater pressurised rescue vessel for the UK MOD. Work continues onimproving the manufacturing site at the Chatteris plant, including there-cladding of the exterior of the buildings as part of the programme of energycost saving started in 2004 as cost of gas and electricity supplies continue toescalate. Additionally, the manufacturing facilities have been upgraded withthe installation of a new computer controlled welding robot and two new stateof the art computer controlled production machines. Management are reviewingadditional opportunities within the EU and UK aerospace industries. Severalsenior employee visits were also made to Mainland China and talks arecontinuing with a UK company on the opportunities that may exist in thatcountry.Order intake and sales at Jena, through its operations in Germany the UK andUSA, continued to increase during the period as a result of the improvedeconomic situation in Germany and the development and expansion of the new JenaGroup initiative to provide a one stop service and repair of ballscrews,bearings and spindles in the UK. Part of this programme was the completion ofthe installation at the Sherwood Park facility in Nottinghamshire of a newcomputer controlled testing facility for high value, high frequency spindlesservicing aerospace manufacturing in the UK and EU.C&H sales and order intake grew strongly during the six months under reviewwith new customers in the aerospace airframe sector and continuing growth inour turbine blade finishing activities for aero engines and land basedturbines.Activity at Crown UK Limited, reduced as a result of the slow down oftraditional camera post supply in the UK, concentrated on overseasopportunities and the introduction of digital cameras for Transport for London.During the period, there was renewed enquiry and tendering activity for postsfor Railway signalling applications for the next programme of installations onthe West Coast line.Two prototype camera housings for use on a new programme for the detection ofoccupancy levels in motor vehicles were manufactured and delivered to sites inthe UK for extended trials. These housings were supplied in support of a newlyformed Avingtrans Subsidiary Company, Vehicle Sensor Technology Limited, whichhas signed an exclusive worldwide 5 year renewable supply and service agreementwith Vehicle Occupancy Limited, the owner of a patented system for thedetection of the number of people in a motor vehicle. The system, wheredeployed, will make it easier to enforce priority lanes for car sharinginitiatives and for differential tolling on roads, bridges, tunnels and carparks.Current Trading and ProspectsAll divisions of the Company with the exception of Crown UK are continuing totrade to or above expectations with C&H, Jena and Stainless Metalcraftdeveloping strong order books. The softening in the UK market for roadsidespeed camera poles was widely forecast as the Government reviewed its optionsfor traffic speed detection and control but deepened progressively as thereport was delayed. The report is now published and orders for traditionalcamera posts and the new digital camera posts are beginning to pick up again.Orders are also expected for Railway signal posts in the second half of theyear and Crown looks forward to a much improved second half.Unexpected and material increases in the cost of energy supplies and rawmaterials are of concern for the second half, but cost reduction andproductivity upgrade programmes are under constant review in an effort tominimise the effects of the extra costs.The awarding of Tier 1 supplier status to Stainless Metalcraft by Siemens andthe signing of a 5 year supply and service agreement with Vehicle OccupancyLimited for new type camera housings give rise for optimism for the remainderof the year and the longer term future.K.M.BakerChairman9 February 2006Consolidated Profit and Loss Account Note 6 mths to 6 mths to 12 mths to 31 May 30 Nov 30 Nov 2005 2005 2004 Unaudited Audited Unaudited ‚£'000 ‚£'000 ‚£'000 Turnover Group turnover - continuing 15,701 7,929 24,329operations Operating profit before amortisation Continuing operations 1,537 775 2,542 Amortisation of goodwill (179) (99) (278) Group operating profit 1,358 676 2,264 Profit on ordinary activities 1,358 676 2,264before interest Net interest payable and similar (190) (117) (295)charges Profit on ordinary activities 1,168 559 1,969before taxation Tax on profit on ordinary 3 (355) (177) (668)activities Profit for the period 813 382 1,301 Dividend - - (71) Retained profit for the period 813 382 1,230 Earnings per share 4 Basic 5.7p 4.8p 11.2p Diluted 5.3p 4.8p 10.6pStatement of Total Recognised Gains and Losses 6 mths to 6 mths to 12 mths to 30 Nov 30 Nov 31 May 2005 2004 2005 Unaudited Unaudited Audited ‚£'000 ‚£'000 ‚£'000 Profit for the financial period 813 382 1,301 Other recognised gains and losses Currency translation gain 52 64 37 Total recognised gains/(losses) relating 865 446 1,338to the period Summarised Consolidated Balance Sheet At 30 Nov At 30 Nov At 31 May 2005 2004 2005 Unaudited Unaudited Audited ‚£'000 ‚£'000 ‚£'000 Fixed assets Intangible assets 6,560 6,951 6,739 Tangible assets 6,113 4,997 5,869 Investments 26 59 26 12,699 12,007 12,634 Current assets Stocks 4,935 4,323 4,566 Debtors due within one year 5,270 5,627 5,495 Cash at bank and in hand 682 672 909 10,887 10,622 10,970 Creditors: Amounts falling due within one (8,561) (9,191) (9,437)year Net current assets 2,326 1,431 1,533 Total assets less current liabilities 15,025 13,438 14,167 Creditors: Amounts falling due after more (3,801) (3,783) (3,801)than one year Provisions for liabilities and charges (190) (307) (197) Net assets 11,034 9,348 10,169 Capital and reserves Called up share capital 713 713 713 Share premium account 3,783 3,783 3,783 Capital redemption reserve 813 813 813 Other reserves 180 180 180 Profit and loss account 5,545 3,859 4,680 Equity shareholders' funds 11,034 9,348 10,169 Consolidated Cash Flow Statement 6 mths to 6 mths to 12 mths to 31 May 2005 30 Nov 30 Nov Audited 2005Unaudited 2004Unaudited ‚£'000 ‚£'000 ‚£'000 Net cash inflow from operating 987 1,384 3,917activities Returns on investment and servicing of finance Net interest (206) (119) (249) Net cash outflow from returns on (206) (119) (249)investment and servicing of finance Taxation paid (275) (162) (266) Capital expenditure and financial investment Purchase of fixed assets (57) (96) (589) Sale of fixed assets 3 5 31 Purchase of fixed asset investments - - - Net cash outflow from capital (54) (91) (558)expenditure and financial investment Acquisitions and disposals Purchase of subsidiary undertakings (100) (8,035) (8,159) Net cash acquired with subsidiaries - 5 5 Purchase of unincorporated business - - - Net cash outflow from acquisitions and (100) (8,030) (8,154)disposals Equity dividends (71) - - Financing Issue of share capital - 4,144 4,144 New Loans - 2,895 2,896 Repayment of loan capital (292) (722) (1,165) Capital element of finance lease (273) (130) (354)payments Net cash (outflow)/inflow from (565) 6,187 5,521financing (Decrease)/increasein cash (284) (831) 211 Reconciliation of Operating Profit to Net Cash Flow from Operating Activities 6 mths to 6 mths to 12 mths to 31 May 30 Nov 2005 30 Nov 2005 ‚£'000 2004 ‚£'000 ‚£'000 Operating profit 1,358 676 2,264 Depreciation of tangible fixed assets 446 214 627 Amortisation of intangible assets and 179 99 278goodwill (Profit)/loss on disposal of tangible (3) (2) 1fixed assets Impairment of Investment - - 33 Increase in stocks (314) (303) (764) Decrease/(increase) in debtors 261 (1,132) (1,016) (Decrease)/increase in creditors (940) 1,832 2,494 Net cash inflow from operating 987 1,384 3,917activities NOTES1. This interim report was neither audited nor reviewed by the auditors. It wasapproved by the Board on 8 February 2006. It has been prepared using accountingpolicies that are consistent with those adopted in the statutory accounts forthe year ended 31 May 2005.The figures for the year to 31 May 2005 were derived from the statutoryaccounts for that year. The statutory accounts for the year ended 31 May 2005have been delivered to the Registrar of Companies and received an audit reportwhich was unqualified and did not contain statements under s237(2) or (3) ofthe Companies Act 1985.2. This statement is being sent to shareholders of the Company and will beavailable at the Company's Registered Office.3. The taxation charge is based upon the expected rate for the year ended 31May 2006.4. Earnings per share has been calculated using the weighted average number of14,262,086 Ordinary Shares in issue during the period (2004: 7,998,268)(Audited 2005: 11,588,530).Basic earnings per share before goodwill amortisation was 7.0p (2004: 6.0p)(Audited 2005: 13.6p)5. Analysis of Net Debt 1 June Cash Inception Exchange 30 Nov 2005 ‚£ flow ‚£ of loans '000 '000 and finance movement 2005 leases ‚£'000 ‚£'000 ‚£'000 Cash at bank and 909 (209) - (18) 682in hand Bank overdraft (173) (75) - (1) (249) Cash 736 (284) - (19) 433 Debt (3,468) 302 - - (3,166) Hire purchase (1,485) 263 (628) (1) (1,851)leases (4,953) 565 (628) (1) (5,017) Net debt (4,217) 281 (628) (20) (4,584) 6. Reconciliation of movements in Shareholders' Funds 6 mths to 6 mths to 12 mths 30 Nov 30 Nov 200 to 31 May 2005 4 2005 Unaudited Unaudited Audited ‚£'000 ‚£'000 ‚£'000 Profit for the financial period 813 382 1,301 Other recognised gains and losses 52 64 37relating to the period Dividends - - (71) Proceeds of share issue - 4,144 4,144 Increase in shareholders' funds 865 4,590 5,411 Opening shareholders' funds 10,169 4,758 4,758 Closing shareholders' funds 11,034 9,348 10,169 ENDAVINGTRANS PLC