Last checked at 26 Jun 2017 07:00
26 June 2017
Avingtrans Plc
("Avingtrans" or the "Company" or the "Group")
Metalcraft secures contract extension with Sellafield and trading update
Avingtrans (AIM: AVG), which designs, manufactures and supplies critical components, modules and associated services to the energy, medical and traffic management sectors is pleased to announce that Stainless Metalcraft (Chatteris) Ltd. (Metalcraft), part of the Group's Energy and Medical division, has secured an additional contract option with Sellafield Ltd. The contract is worth an additional £11 million in revenue to Metalcraft, the majority of which is expected to be spread equally over the three years to FY21.
Building on Metalcraft's award in May 2015 of a contract worth up to £47m for the supply of waste containers over 10 years, Sellafield has now executed an option within that contract for an additional quantity of containers.
From the initial contract award in 2015, Metalcraft has successfully cleared the prototype development phase of the contract and has established a world class dedicated manufacturing facility, which is now engaged in pre-production trials.
Austen Adams, Managing Director of Metalcraft and Avingtrans Plc's Energy and Medical division, said: "This is another significant step forward for Metalcraft in this market. Over the last two years, the company has demonstrated its capability to produce these demanding ILW (Intermediate Level Waste) containers.
The Metalcraft team, working closely with Sellafield, has established a great platform for the provision of these containers for years to come. It is pleasing to see this being recognised with the award of additional production volume."
Steve McQuillan, Chief Executive Officer of Avingtrans Plc, added: "The Board is delighted that Metalcraft has secured such an additional option to this prestigious contract. It is a testament to the expertise and hard work of the Metalcraft team and vindicates the Board's decision to move the Energy and Medical business into new markets. Metalcraft is a leading player in its chosen markets and contracts such as this underline our status as a world class business."
Trading Update
In respect of trading for the year ended 31 May 2017, Avingtrans confirms that although revenue was slightly behind management outlook, it closed the year with adjusted profit before tax marginally ahead of internal expectations and net cash of £26.2m. The Company is also pleased to report a strong current order book for its Energy and Medical division
Enquiries:
Avingtrans plc Steve McQuillan, CEO Stephen King, CFO
| 0135 469 2391 |
N+1 Singer Shaun Dobson Lauren Kettle
| 020 7496 3000 |
Newgate Communications (Financial PR)Adam LloydEd Treadwell James Browne | 020 7653 9850 |
About Avingtrans
Avingtrans is engaged in the provision of highly engineered components, systems and services to the energy, medical, industrial and traffic management industries worldwide.
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