‘Exciting times ahead’ for manufacturing group as profits soar following £50m acquisition
The chairman of manufacturer Avingtrans said “exciting times lie ahead” for the company as it reported a strong rise in revenue and profit, boosted by a £50m acquisition it made last year.
Avingtrans, which has several operations across the West Midlands and designs, manufactures and supplies critical components and associated services to the energy and medical sectors, completed a £50m acquisition deal in reverse takeover of Hayward Tyler Group in an all share deal last September.
The acquisition created a global business with more than 750 employees and revenues of around £90 a year, servicing the energy, medical and Big Science industries.
This morning, announcing its results for the year to the end of May, including nine months contribution from Hayward Tyler Group, Avingtrans posted a 247% increase in revenue to £78.9m from £22.7m, driven by the acquisition.
Adjusted EBITDA increased by 690% to £5.7m while adjusted profit before tax increased by 820% to £2.4m, up from £300,000.
Cash outflow from operating activities stood at £6.9m, rising from £3.3m in the prior year period.
Chairman Roger McDowell said: “It has been an exciting year, during which, the group continued to execute its Pinpoint-Invest-Exit strategy (PIE) through the acquisitions of Hayward Tyler Group (HTG) and also Ormandy Group.
“With an eye on eventual exits, we have restructured the group into two separate energy divisions and an incubator medical division. A highlight of FY2018 was the speedy and successful integration of the substantial Hayward Tyler Group acquisition. The new Energy divisional structures and management teams have become effective quickly and their focus is clearly on growth, to build two formidable and valuable divisions. The nascent medical division made slower progress, though we have galvanised our strategic path by partnering on service with MR Resources Inc.”
McDowell said the company is nurturing an “unswerving focus on aftermarket opportunities” as it services end-user customers with fast, local and flexible solutions, resulting in strong growth prospects.
He said: “Nuclear life extension and decommissioning markets also continue to provide fertile ground for growth, underpinned by contract wins in the UK, USA, South Korea and mainland Europe. However, we are mindful of avoiding over-dependence on nuclear and thus, we are developing into new markets, such as renewables with (eg) funding from the DoE in the USA for future generation solar plants. Exciting times lie ahead.”
