Aerospace supplier Avingtrans sees record turnover as sector flies
AEROSPACE group Avingtrans has announced record turnover as the continued strength of its principal markets helped offset weakening trends in the energy and medical sectors.
Avingtrans, which has a Sigma facility in Hinckley, designs, manufactures and supplies critical components and associated services to the global aerospace, energy, medical and industrial
Sectors.
For the year to May 31, 2012 turner increased 21% to £44.0m (2011: £36.3m), while gross profit margin stood at 27% (2011: 29%) due to an adverse product mix.
Nevertheless, adjusted EBITDA improved by 26% to £4.2m (2011: £3.3m) and adjusted pre-tax profit increased by 43% to £2.3m (2011: £1.6m).
Adjusted earnings per share rose to 7.5p per share (2011: 5.5p per share) and cash generated from operations was £2.2m (2011: £3m). Net debt increased to £8.4m (2011: £6.6m) – £0.7m of which was due to the Sigma Composites acquisition in February.
Roger McDowell, Avingtrans chairman, said: “For the second year in succession, I am pleased to report that group revenue and adjusted EBITDA have grown by over 20%. Indeed, adjusted EBITDA margin is a respectable 9.5%, with adjusted EPS having more than doubled in the past two years, whilst net debt remains at manageable levels. All of these results were in line with market expectations, so our consistent form continues.”
He said while the board was encouraged by the performance it remained cautious of the year ahead due to the continuing market volatility in the Eurozone.
Operational highlights included orders at record levels and strong growth in its Sigma and C&H Precision Finishing operations due to the buoyant state of the civil aerospace market. The division achieved a 10% operating margin and growth of 34%.
Sigma UK had its best year so far, in terms of growth and profit, while Sigma China made a profit for the year again and grew by 52%.
Midlands-based C&H continued to grow positively, strengthened by its position with Rolls-Royce.
The group said the acquisition of the Sigma Composites business in February required an initial investment of £0.3m, but it had already helped repay this with by supporting the win of the Clean Sky EU project on composite pipes, worth over €1m.
“Some elements of our key markets remain in a state of flux and we have seen this across our group with improvements in aerospace being offset by stubborn weakness in energy and medical,” added Mr McDowell.
“Whilst we remain optimistic, this sentiment is tempered, to ensure that we sustain the shareholder value gains of the last two years.”
