27th Sep 2016 07:51
LONDON (Alliance News) - Avingtrans PLC, which manufactures components for the medical and energy industries, on Tuesday posted a swing to profit in its financial year to the end of May despite revenue dipping following the sale of its aerospace business.
Avingtrans made a pretax profit of GBP245,000 in the year to May 31, compared to a GBP1.3 million loss a year before. The profit was driven by a better gross margin, up to 14.9% from 10.7%, which offset a dip in revenue. Avingtrans also benefited from the absence of start-up costs booked the year before for its Chinese operation and from a one-off gain on a property disposal.
Revenue declined to GBP21.2 million from GBP22.6 million the year before in the company's continuing operations, which excludes the Aerospace unit that it sold for GBP65.0 million in May. Revenue in both the Energy and Medical divisions was broadly flat in the year, though the Energy unit felt the strain from the weak oil and gas market.
The company declared a final dividend of 2.10 pence per share, up from 2.00p a year before, taking its total payout to 3.20p from 3.00p.
"With attractive structural growth markets and durable customer relationships, we remain cautiously confident about the future of Avingtrans," said Chairman Roger McDowell.
Avingtrans shares were down 0.5% at 187.06p on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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