Last checked at 11 Jul 2012 07:00
Avingtrans Plc ("Avingtrans" or the "Company" or the "Group") Trading Update
Avingtrans (AIM:AVG), a manufacturer of critical components and associatedservices to the medical, energy, industrial and global aerospace sectors ispleased to announce the following pre-close trading update following the end ofits financial year to 31 May 2012. It is expected that the preliminary resultsfor the year then ended will be announced during week commencing 17th September2012.Group sales are expected to be approximately 20% ahead of the previous year, inline with market expectations, with all divisions contributing to this growth.Similarly, operating profit is also expected to be ahead of last year and inline with expectations, reflecting on-going improvements in the Group'sperformance.
Aerospace
The Company is particularly pleased to report improved overall performance inthe Aerospace division. This divisional performance is all the more creditable,given that the Group continues to invest in building the recently formed SigmaComposites business and, while initial sales levels have been lower than hadbeen hoped for, the belief remains that this investment will contributestrongly to the Aerospace division in the future.Looking forward, the Company is pleased to announce that it is in finalnegotiations with the European Union to participate in its "Clean Sky"programme to develop new technology for more environmentally sustainableaircraft, rotorcraft and propulsion systems. Clean Sky is supported by many ofEurope's leading aerospace OEMs. In April 2012, Sigma and its partner TWI, aleading independent research and technology organisation, responded to CleanSky's call to develop non-metallic pipes for aero engines. The contract isvalued at EUR1.7 million.
We are delighted to report that Sigma has been selected as preferred bidder against strong competition. Providing that the final details can be agreed, the Sigma and TWI consortium should receive a contract in August. The programme is expected to last 18 months.
This project fits perfectly with Sigma's technology development roadmap andambition to generate intellectual property. Since the project will lean heavilytowards composite materials, Avingtrans' recent acquisition of Sigma Compositesand TWI's expertise in composites joining and thermoplastics were key factorsin Clean Sky's decision process.
Industrial
Industrial Products has had a solid year with strong results in Germany and theUSA. Recently, Jena Tec's automation division, Moss Group, received ordersworth approximately £600,000. Notable amongst these is a £450,000 order fromNissan Manufacturing UK for the automotive transfer line upgrades for a newengine variant introduction, awarded by Nissan in May 2012 and will comprisethe supply and integration of conveyor systems, fixtures, transfer tables andancillary systems.
This will be integrated in Nissan's Sunderland plant in December 2012, where Jena Tec will provide a complete turnkey retrofit, as Nissan UK expands its production capability for newer engine models.
Energy and Medical
As previously stated at the half year, the performance of the Energy andMedical division has been held back by delays to the next generation MRIsystems being developed by Siemens and, specifically in relation to the Group'sCrown business, on-going market weakness in the transport infrastructuresector. The Siemens programme is however progressing, albeit slower thananticipated and Crown is awaiting final confirmation of a new £200k contractfor CCTV infrastructure on the M4/M5 Managed Motorway programme. In response tomarket weakness, measures have been taken at Crown to manage costs to anabsolute minimum.Beyond the two key factors above, however, the flow of work for the divisionfrom other key customers - eg Cummins - has been satisfactory and new projectwins are in line with forecasts.
Group Outlook
Although market conditions continue to be challenging, buoyed by positive trends in the Aerospace sector, we remain confident overall in continuing to perform in line with market expectations.
Enquiries:Avingtrans plc 0115 949 9020 Steve McQuillan, CEO Stephen King, CFO FinnCap
Marc Young / Henrik Persson - Corporate Finance 020 7600 1658
Brian Patient / Victoria Bates - Corporate Broking
Newgate Threadneedle 020 7653 9850 (Financial PR)
Josh Royston/ Guy McDougall
About Avingtrans
Avingtrans plc is engaged in the provision of highly engineered components
and services to the energy, medical, scientific and research communities, traffic management, automation, machinery and aerospace industries
worldwide.
The business is made up of 3 divisions: • Aerospace, engaged in the manufacture of rigid pipe assemblies and
prismatic components for aero engines and precision polishing of aircraft components;
• Energy and medical, engaged in the manufacture of machined and fabricated
pressure and vacuum vessels and components for the energy, medical, science
and research communities. Design and manufacture of fabricated poles and cabinets for roadside safety cameras and rail track signalling and;
• Industrial products, engaged in the design, manufacture, distribution and
service of precision ballscrews, spindles and related linear and rotary products servicing the original equipment and after markets in global industry. TWI
TWI is one of the world's foremost independent research and technology organisations, with expertise in solving problems in all aspects of manufacturing, fabrication and whole-life integrity management technologies.
Established in Cambridge, in 1946 and with several facilities across the globe,the company has a first class reputation for service through its teams ofinternationally respected consultants, scientists, engineers and support staff,whose knowledge and expertise are available to its Industrial Members as andwhen they require.
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