25th Sep 2024 18:42
(Alliance News) - Avingtrans PLC on Wednesday said profit fell more than 30% for the financial year just ended, despite a jump in revenue, but a "strong" order book and progress in acquired businesses leaves it optimistic for further growth.
The designer and supplier of components and services to the energy, medical and industrial sectors said revenue for the 12 months to May 31 was GBP136.6 million, up 17% on-year from GBP116.4 million.
However, pretax profit fell 36% on-year to GBP4.8 million from GBP7.5 million, whilst cost of sales increased 19% on-year to GBP92.6 million from GBP78.1 million.
During the period, the company acquired its remaining interest in radiology-focused Adaptix for a total combined consideration of GBP7.2 million, which began selling veterinary products in the UK and USA. It expects a volume build-up in the next financial year.
Avingtrans proposed a final dividend of 2.90 pence per share up from 2.80p on-year, resulting in a total dividend of 4.70p per share. This was up 4.4% on-year from a total dividend of 4.50p.
Chair Roger McDowell said: "We are pleased to present another solid set of results. In many aspects, this year has been challenging, but Avingtrans has once again performed very well as a group and exceeded market expectations. During the year, we made prudent use of our robust balance sheet by purchasing Slack & Parr and Adaptix, to strengthen our positions in specialist pumps and medical imaging. We also increased our investment in Magnetica's cutting-edge MRI systems. We have a strong order book going into financial 2025, and we anticipate growing as a group this year thanks to favourable macro conditions in the energy, infrastructure and healthcare sectors."
Looking ahead, Avingtrans said it has performed "in line with management expectations" for the first quarter of financial 2025, and it remains "confident about the current strategic direction and potential future opportunities across our markets, though we are mindful of turbulent market conditions."
Shares in Avingtrans closed 0.5% higher at 421.88 pence each in London on Wednesday.
By Emily Parsons, Alliance News reporter
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