Aerospace group Avingtrans announces record FY revenues
MIDLANDS-based engineering group, Avingtrans, has announced record full tear revenues, boosted by the strong aerospace sector.
The company, which designs, manufactures and supplies critical components, modules and associated services to the aerospace, energy and medical sectors, said revenue rose by 33% to £60.3m (2013: £45.3m) for the year ended May 2014.
Adjusted EBITDA increased to £5.6m, including £2.6m from the acquisition of Maloney Metalcraft, which offset the expected losses in that company. Adjusted pre-tax profit was £3.5m (2013: £1.9m). The company said the acquisition of Maloney Metalcraft afforded the business critical mass in the Oil & Gas sector.
Adjusted diluted earnings per share from continuing operations increased to 13.7p per share (2013: 7.0p) and cash generated from operating activities was £1.6m (2013: £0.5m outflow).
The year also saw continued investment in the various operations and improvements to capacity totalling £4.3m (2013: £2.8m). Net debt rose slightly to £3.6m (2013: £2.9m).
The board has increased the final dividend by 1.8p per share to give a full year dividend of 2.7p (2013: Final 1.5p per share; total 2.2p), an increase of 23%.
Operationally, it said aerospace operations had boosted growth through acquisitions, with an increase in revenues of 32% compared with 2013. It said the full effect of the Farnborough and Derby acquisitions in 2013 was still coming through but the Hinckley new product introduction site was now fully operational.
Its C&H business was said to have had a strong year, with new “barrelling” capability bedding-in well. A loss by Composites was reduced and the EU “Clean Skies” project is progressing to plan, it added.
Pipe production in China has commenced, although the company said growth had been slower than anticipated.
Post year-end the company announced the acquisition of certain assets of RMDG, which it took over from Tricorn. However, it said it was too soon to see the benefits of this.
Energy and Medical division revenues increased by 35%, driven by the Maloney acquisition, added the company.
Commenting on the results, Roger McDowell, Avingtrans chairman, said: “Driven by recent acquisitions, revenue grew by 33% and EBITDA by 55%. Adjusted diluted earnings per share almost doubled to 13.7p, assisted by a favourable tax charge. Despite continuing investment of £4.3m, group net debt only increased modestly to £3.6m – lower than market expectations – with gearing stable at 11%.
“As before, there is no room for complacency. The group saw significant currency headwinds last year and short term forecast variation means we need to remain agile. Aerospace remains in good health, with the recent acquisition of RMDG Aerospace consolidating our niche market leadership. Energy and Medical is also making headway in its restructuring plans. The Maloney Metalcraft acquisition has proven challenging, but the reinforced management team are getting to grips with the recovery.
“Importantly, we have also strengthened our board this year, welcoming Les Thomas to the group. We remain positive about the future and a 1.8p per share final dividend is proposed, making 2.7p for the year, an increase of 23%.”
