Last checked at 19 Mar 2010 07:00
19 March 2010 Avingtrans plc ("Avingtrans" or "the Group") Trading statement
Avingtrans announces that, like many of our peers, the current economic environment continues to impact on our results, specifically on our Metalcraft subsidiary, a provider of safety-critical equipment for the energy, medical, science and research communities.
The expected shortfall in sales and profits at Metalcraft is mainly attributable to the postponement of orders from customers across a number of sectors, including the nuclear decommissioning and scientific research markets, which are subject to delays in public sector procurement processes. This has meant that certain revenues and profits will now be deferred to the year ended 31 May 2011 and beyond.
Whilst the Board is pleased to report that the other subsidiaries are trading in line with expectations, the results for the Group for the twelve months ended 31 May 2010 will now be significantly below management's expectations. This is disappointing but the Board still expects to be profitable in the second half.
Avingtrans continues to operate within its banking covenants.
We remain cautiously optimistic about the medium to long term prospects for Metalcraft - given recent wins in the Power and Nuclear sectors. Group orders continue to improve steadily and we are confident with the strategy that is now in place and the medium term prospects of the Group.
Enquiries:Avingtrans plc Tel: +44(0)115 949 9020 Roger McDowell, Chairman Steve McQuillan, Chief Executive Officer Stephen King, Finance Director www.avingtrans.plc.uk KBC Peel Hunt Tel: +44(0)20 7418 8900 Richard Kauffer Hansard Communications Tel: +44(0)20 7245 1100 John Bick
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