26th Jun 2019 11:43
(Alliance News) - Avingtrans PLC on Wednesday said it saw a year of "excellent trading progress" in financial 2019 and, as a result, expects revenue, operating and pretax profit all ahead of market expectations.
For the year ended May 31, the energy and medical equipment manufacturer expects revenue of about GBP104 million, which is about 8% ahead of expectations.
Avingtrans expects operating profit to come in at GBP5.8 million, before exceptional items, which is about 18% ahead of expectations.
The company's pretax profit is expected to be about GBP5.2 million, which is about 21% ahead of expectations.
In financial 2018, the company posted a pretax loss of GBP4.5 million on revenue of GBP78.9 million.
"Avingtrans has had another solid year of growth across our core divisions and I am pleased to announce the company expects turnover, operating profit and pretax profit to be ahead of market expectations," said Chief Executive Steve McQuillan.
The company said 2017-acquisition Hayward Tyler has seen "sustained development and improvement" in the period. Avingtrans also noted its Engineered Pumps & Motors unit securing "a number of key contracts" over the past 12 months.
McQuillan added: "This is attributable to both the significant contract wins we have delivered on both sides of the Atlantic in the last 12 months and to the success of 'Pinpoint-Invest-Exit' strategy. Importantly, the future looks bright for our business. The acquisitions of Tecmag, Booth Industries and Energy Steel look set to position us strongly for the future and are anticipated to positively impact the group's revenue forecasts for financial 2020, and profitability in financial 2021 and beyond."
Shares in Avingtrans were 9.9% higher in London on Wednesday at 249.00 pence each.
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