30th Oct 2019 11:33
(Alliance News) - Engineering firm Avingtrans PLC said Wednesday a subsidiary secured a GBP7.2 million UK government contract to deliver safety doors.
Blast and fire doors maker Booth Industries - a wholly-owned subsidiary of Avingtrans - sealed the contract from the UK government as it looked to rebuild its order book.
Avingtrans acquired Booth Industries Ltd for GBP1.8 million from administrators of Redhall Group PLC in June, with the acquisition not including the existing order book.
For the year ended September 30, 2018, Booth generated GBP300,000 in pretax profit on revenue of GBP11.7 million.
Since the June acquisition, Booth has secured contracts worth GBP12 million spread over the next two years.
"The team at Booth Industries have got off to a promising start, clearly justifying our decision to invest in the business," Avingtrans Chief Executive Steve McQuillan said.
"Avingtrans has a strong track record of identifying underperforming businesses in highly regulated engineering markets and investing in them to turn the underlying business around, via our PIE model (Pinpoint-Invest-Exit)," McQuillan added. "As the Booth acquisition shows, it's an approach that continues to deliver significant shareholder value while securing the future of traditional UK engineering businesses and retaining essential skills in the economy."
Shares in Avingtrans were 4.3% higher at 259.70 pence in London on Wednesday.
By Ahren Lester; [email protected]
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