3rd Oct 2018 09:28
LONDON (Alliance News) - Avingtrans PLC on Wednesday said its acquisition of Hayward Tyler Group boosted annual revenue, but the resulting expenses ultimately deepened its loss.
In its financial year ended May 31 the company, which manufactures and supplies components and systems to various sectors, posted a pretax loss of GBP4.5 million. This compares to a GBP285,000 loss the year before.
Administrative expenses were the source of this change, ballooning to GBP19.9 million from only GBP3.8 million as a result of exceptional costs associated with the acquisition.
Revenue more than trebled, however, to GBP78.9 million from GBP22.7 million as a result of the September acquisition, which contributed nine months of revenue.
The company raised its final dividend per share to 2.3 pence, resulting in a full year dividend of 3.6p. This put the total 5.9% ahead of the 3.4p per share dividend last year.
"We are nurturing an unswerving focus on aftermarket opportunities, as we service end-user customers with fast, local and flexible solutions, resulting in strong growth prospects," said Chairman Roger McDowell.
"We are developing into new markets, such as renewables with funding from the Department of Energy in the US for future generation solar plants. Exciting times lie ahead," McDowell added.
Shares in Avingtrans were up 4.5% at 226.70p on Wednesday.
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