26th Feb 2014 09:37
LONDON (Alliance News) - Components manufacturer Avingtrans PLC Wednesday reported a sharp increase in first-half pretax profit and revenues, driven by acquisitions in both its aerospace and energy and medical divisions.
The company reported a pretax profit of GBP2.9 million for the six months to end-November, from GBP200,000 a year earlier, as revenues almost doubled to GBP32.2 million, from GBP16.9 million.
Its civil aerospace business, which makes components for customers including Rolls-Royce, Safran and Meggitt, saw revenues rise 90% after the acquisition of a fabrications and ducts company in Farnborough and pipe assemblies business in Derby. It said profits at the unit were also better than hoped as the Farnborough business and its components unit both improved.
Meanwhile, its energy and medical unit has been buoyed by the acquisition of Maloney metalcraft, while it has also expanded the unit's Chinese operations.
"Whilst it is too early to see the results of these activities at Maloney, investors will be pleased to note the substantial potential pipeline of business that is building there, with the current prospect bank exceeding GBP100 million of opportunities," Chairman Roger McDowell said in a statement.
Overall, it said it order book remains at record levels, driven mainly by the aerospace division.
It raised its interim dividend to 0.9 pence a share, from 0.7p.
Avingtrans shares were up 1.3% at 171.72 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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