Aerospace group strengthens position with composites acquisition
AEROSPACE group Avingtrans has strengthened its position in the composites sector with a new acquisition.
The group, which also manufactures critical components and associated services to the medical, energy and industrial sectors, has set up Sigma Composites Ltd following the acquisition of Delta Composites Ltd, Alpha Composites Ltd and Orion Machining Ltd – collectively known as Composites Engineering Group or CEG.
Avingtrans, which has an existing Sigma facility in Hinckley, said the acquisition of the Buckingham-based group strengthened further its aerospace division and gave it a foothold in the F1/Motorsport market.
The AS9100-approved facilities will also serve other hi-technology markets such as satellite communications and ‘prestige automotive’. Avingtrans said CEG was already supplying to a global blue-chip customer-base.
The acquisition aligns the Sigma operation with that of fellow Midland manufacturer, Umeco, which sold its Pattonair supply chain business last year to concentrate solely on the composites market.
Sigma Composites will operate from the existing Buckingham facilities, with its sister company Sigma Precision Components remaining at its facilities in Hinckley and at Chengdu in China.
“Sigma’s business model provides its global customers with complete product life-cycle support, optimising method and option of location of manufacture to best meet market needs. This latest development widens Sigma’s offering and widens market access substantially,” said the group in a statement.
It said the acquisition was expected to be broadly neutral in the current financial year but would be earnings enhancing in the year commencing June 2012.
Mark Johnson, divisional managing director of Avingtrans Aerospace, said: “Acquiring a capability in composites is something we have been seeking for some time and we are delighted that we now have a well-established business in Sigma Composites.
“The addition of a composite engineering capability, combined with existing high precision engineering, should create a compelling prospect for our existing and prospective customers, and is a significant step forward for us.”
In its half year results, Avingtrans said revenue increased by 20% to £20.2m (H1 2011: £16.9m) and order books remained close to record levels.
The good performance saw EBITDA improve by 26% to £1.8m (H1 2011: £1.5m) and the group has declared adjusted earnings per share of 3p (H1 2011: 1.8p).
Operational highlights included a strong six months from Sigma, topped by a £3m contract win with aerospace group Goodrich.
