£50m acquisition pays dividends for manufacturer

Avingtrans, which designs, manufactures and supplies original equipment to the energy and medical sectors, has seen half year revenue rise by £20m, boosted by a £50m acquisition which created a global business.

Avingtrans, which has several operations across the West Midlands, completed a reverse takeover of Hayward Tyler Group (HTG) in an all share deal late in 2017, which created a company with more than 750 employees and revenues of around £90m a year, servicing the energy, medical and Big Science industries.

This morning, for the six months to the end of November 2018, the company reported revenue from continuing operations of £47.7m , up from £26.9m, while adjusted profit before tax advanced positively to £1.6m from a £0.1m loss.

Energy revenues increased by 90%, driven mainly by HTG while aftermarket performance continued to improve across all business units.

Chairman Roger McDowell said: “The former Hayward Tyler Group businesses have continued to improve financially post-acquisition and we are engaged in the investment and development phase of our stated PIE strategy.

“This will enable us to fully realise the underlying value of the Hayward Tyler and Peter Brotherhood businesses. Our main business units are performing well. We continue to make good progress with new business – especially in nuclear. Since acquisition in February 2018, the Ormandy business has improved steadily and promises to produce a significant uplift in the value of our investment. The recent acquisition of Tecmag further cements our plans for the MRI and NMR markets.

“Notwithstanding global macroeconomic uncertainties, we remain confident about our prospects in both the Energy and Medical sectors. Recent orders and prospects underpin the confidence in our outlook.”