Contract wins offer £7m boost to manufacturing group

Manufacturing group Avingtrans has said it is on course to meet full year expectations after a strong first half.

The AIM-listed group, which designs, manufactures and supplies critical components and associated services to the energy and medical sectors, said it had been boosted by a number of new contracts, worth almost £7m to the business.

They include: nuclear life extension contracts worth £2.2m in Sweden and £2.5m in South Korea; a £1m steam turbine refurbishment contract; an initial £0.5m UK gas distribution network upgrade contract; and a £0.5m M6 smart motorway contract.

In a pre-close trading update, the group, whose metalcraft division has a base in Aldridge, said financial indicators for revenue, gross margin and EBITDA were all tracking the board’s expectations and the company continued to secure new business in generally improving market conditions.

The integration of Hayward Tyler group (HTG) and the re-establishment of profitable growth for that business has been successfully completed., with the costly elements of HTG’s historic borrowings repaid on acquisition and renewed long term banking facilities have been secured with RBS.

“Therefore, the board is pleased to report that the opportunities for the long term profitable growth of the enlarged Avingtrans group as presented by the acquisition are as expected,” it said.

Steve McQuillan, CEO of Avingtrans, added: “We are pleased with how the Avingtrans business has performed in the period across both the Energy and Medical sectors.

“Our focus has been integrating the Hayward Tyler businesses into Avingtrans’ existing business and we are happy with how this phase of development has progressed. We continue to be excited by the market synergies and potential that Hayward Tyler group offers Avingtrans, both in terms of enhancing the existing business and adding additional scale to future opportunities.”