Avingtrans Regulatory News (AVG)

2 May 2007 07:10

Avingtrans PLC02 May 2007 Avingtrans plc ("Avingtrans" or the "Group") Trading Update Avingtrans plc, the UK based engineering and technology group, today gives anupdate on trading. The Group has successfully reorganised itself into three divisions: aerospace;medical & research; and industrial products, and the Board continues to believethat such alignment will enable organic growth, synergies and cross sellingopportunities. However, certain of the Group's companies in the second half of the financialyear to 31 May 2007 have not achieved the sales that the Board was expectingand, as the Group's overheads are relatively fixed, the Board expects theresults for the year to 31 May 2007 to be behind its expectations. Stainless Metalcraft (Chatteris) Ltd ("Metalcraft"), the Group company involvedin the provision of fabrication services and the specialist machining of largecomponents, has experienced a reduction in order uptake from one of its keymedical customers during the second half of the financial year to 31 May 2007. As previously announced, Crown UK Ltd ("Crown"), the Group company specialisingin the design and manufacture of roadside camera and railway signalling pole andsupport fabrication units, tendered to supply its products to three sections ofthe West Coast Line. Crown is currently completing an order for one section ofthe West Coast Line but the Board does not expect to receive orders for theremaining two sections prior to 31 May 2007. CH Precision Finishers Ltd ("C&H"), the Group company engaged in the finalpolishing and specialist finishing on aeroengine turbine blades, compressorblades and vanes for the power generation industries, has experienced supplyproblems from a third party supplier and has subsequently been unable to carryout its work on its client's products. The Board anticipates that its client'ssupplier will have dealt with its problems and expects work at C&H to resume tonormal levels shortly. The Board is confident that the Group will make progress in the year to 31 May2008 and the Group's order book remains at record levels. The Group hasidentified a number of new business opportunities and specifically, thestrengthening of the aerospace division continues with the Group company, SigmaPrecision Components Ltd, officially opening its facility in April 2007 and hasrecently achieved AS9100 accreditation. However, the Board believes that thereduction in order uptake experienced by Metalcraft will continue into the yearto 31 May 2008 and that following a review of the business operations at therecently acquired B&D Patterns Ltd ("B&D"), the Group company specialising inrigid and flexible pipe assemblies and components for aerospace applications,the Board believes that B&D's operations will not expand in the year to 31 May2008 as the Board had originally expected. For further information, please contact: Avingtrans plc Tel: 01159 499 020Ken Baker, ChairmanSteve Lawrence, Managing Director KBC Peel Hunt Ltd Tel: 020 7418 8900David Anderson This information is provided by RNS The company news service from the London Stock Exchange