25th Jun 2025 13:19
(Alliance News) - Avingtrans PLC on Wednesday said full-year trading was on track to meet upgraded expectations, thanks in part to stronger performance in Advanced Engineering Systems, or AES.
The Chatteris, Cambridgeshire-based engineering company focuses on acquiring and selling "highly regulated global engineering" firms, particularly in the aerospace sector.
For the year ended May 31, Avingtrans reported that revenue, adjusted pretax profit and adjusted earnings before interest, tax, depreciation and amortisation, are all in line with upwardly revised market consensus.
Net debt at May 31 was around GBP12.3 million. This figure excludes recognition of some assets and liabilities, usually required under IFRS, and is a little higher than last year's GBP11.8 million figure.
Nonetheless, the company asserted that its debt position was better than expected. Avingtrans attributed the improvement to reduced working capital, as well as lower commercialisation costs in its Medical & Industrial Imaging branch, or MII.
Underlying results in AES were "strong", boosting momentum for financial 2026. Subsidiaries Hayward Tyler, Ormandy, Metalcraft and Booth all performed well, while Slack & Parr continued to show signs of recovery, Avingtrans noted. The firm also flagged a new contract with the UK's Ministry of Defence, secured by Hayward Tyler Luton in May. The deal is worth around GBP3.5 million, and is fuelling ambitions for Avingtrans to expand its business in the defence sector.
MII is progressing in line with timing and cost guidance, ahead of a planned market entry. Adaptix is finalising distribution deals to launch its orthopaedic products, while Magnetica is working towards approval from the US Food & Drug Administration for its MRI system, Avingtrans said.
Despite its optimism, the firm noted that AES exposure remains limited, due to tariff-related concerns. Direct exposure to MII is also limited, though Avingtrans said it is looking for ways to mitigate the situation, including producing more components in the US, to avoid global supply chain issues.
"The group enters financial 2026 with a solid platform for growth, underpinned by expanding commercial traction and ongoing regulatory milestones. As a result, the board views the outlook for the year ahead with confidence," commented Chief Executive Stave McQuillan.
Avingtrans will publish full-year results on September 24.
The company's shares traded up 0.6% at 422.40 pence on Wednesday afternoon in London.
By Holly Munks, Alliance News reporter
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