17th Feb 2016 07:59
LONDON (Alliance News) - Avingtrans PLC on Wednesday posted a big rise in pretax profit for the half year to the end of November, as a decline in revenue was more than offset by lower costs which improved gross margins.
The company, which makes components for the aerospace, medical and energy sectors, said its pretax profit for the six months to November 30 rose to GBP1.2 million, significantly higher than the GBP259,000 it posted a year earlier.
Revenue dipped to GBP26.3 million from GBP27.5 million, but this was offset by cost of sales falling to GBP18.4 million from GBP21.5 million, boosting gross margins.
The revenue fall was attributed to the oil price decline, which hit the Energy division, but the Aerospace business performed well, improving earnings thanks to restructuring activity, while the Medical unit also proved strong, leaving the Energy & Medical division on track to make a full-year profit.
Avingtrans said it will hike its interim dividend 10% to 1.1 pence per share, up from 1.0p a year earlier.
Chairman Roger McDowell said Avingtrans expects its revenue to improve in the second half, driven by contract wins in the Energy & Medical unit, and said the restructuring programme is now complete.
By Sam Unsted; [email protected]; @SamUAtAlliance
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