18th Dec 2007 14:46
Avingtrans PLC18 December 2007 AVINGTRANS plc Trading Update Following the conclusion of the first half ended 30 November 2007 it is nowclear that the Board's earlier optimism for the full year to 31 May 2008 hasfaltered. The state of the Group's orderbook earlier in the year underpinned theBoard's confidence that the Group's overall result for the year would besufficient to offset the disappointing performance within the aerospace divisionwhich we have previously reported. The current state of the orderbook no longerprovides such underpinning. As a result the Directors expect that, whilstprofitable at the pre-tax level on a Group-wide basis, the Group's overallperformance for the full year to 31 May 2008 will fall significantly short ofour expectations. With the help of an encouraging performance in the industrial division duringthe first half of the financial year the Directors also expect to report apre-tax profit at the interim stage, albeit at a level which also falls short ofour previous expectation. On a more encouraging note, the Directors areoptimistic of an improved half on half performance during the remainder of thecurrent financial year on the back of a number of interesting opportunitieswhich are currently under consideration. The Directors expect to announce thefirst half results in February 2008. The problems within the aerospace division have already been highlighted to themarket. These relate to contractual terms on certain important supply contractsat B&D yielding negative margins during the first half of the year on a materialpart of the division's business. In recent weeks prices have been renegotiatedwith the customer concerned. Whilst material improvements on future deliverieshave been achieved, no retrospective support has been agreed to. As a result theaerospace division was loss making in the first half of the year. This contractwill end during the current financial year. Board changes After 5 years with the Group Steven Lawrence, Managing Director has decided toleave the company by the end of May 2008. The Board is actively seeking areplacement and has identified a potential candidate. Once negotiations arecompleted a further announcement will be made. Enquiries: Avingtrans plc 01159 499 020Ken Baker, ChairmanStephen King, Finance Director KBC Peel Hunt Ltd (Nominated Adviser & Broker) 020 7418 8900Julian Blunt or David Anderson This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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