Final Results
8 September 2010
Avingtrans plc
("Avingtrans" or the "Group")
Final Results for the Year Ended 31 May 2010
Avingtrans plc (AIM:AVG), which designs, manufactures and supplies critical
components and associated services to the energy, medical, industrial and
global aerospace sectors, today announces its results for the twelve months
ended 31 May 2010.
Financial Highlights
* Turnover decreased by 24% to £28.6m (2009: £37.6m)
* Gross profit margin largely maintained at 26% (2009: 27%)
* PBT (pre warranty claim and amortisation of intangibles from business
combinations) decreased to a loss of £0.3m (2009: £2.0m profit)
* EBITDA decreased to £2.5m (2009: £4.1m)
* Fully diluted, adjusted1 EPS of 3.0 pence per share (2009: 6.2 pence per
share)
* Cash generated from operations, at £3.8m (2009: £0.4m)
* Net debt reduced to £7.8m (2009: £10.1m)
* Gearing reduced to 36% (2009: 48%)
1 -fully diluted earnings per share adjusted to add back amortisation of
intangibles from business combinations and exceptional items
Operating highlights
* Aerospace:
*
+ Multiple long term agreements signed - eg: Eaton (£8m), Meggitt (£2m),
Moog (£1m)
+ Sigma UK formed as B&D's transition is now complete - Sigma is now one
business
+ Sigma China performance significantly improved over prior year
+ Warranty claim settled with former owners of B&D Patterns for £0.9m
(net of costs)
* Energy and Medical
*
+ Metalcraft signed £8m, 3 year contract with Cummins for supply of
generator frames
+ New contract signed with Siemens Healthcare for MRI equipment,
including new products
+ Sellafield long term contract signed for £1.5m for vitrification plant
+ Metalcraft China established and commenced operations
+ Crown completed £1.25m delivery of new motorway signage products to
Balfour Beatty
* Industrial Products
*
+ Jena-Tec successfully installed £0.5m initial actuation package to a
major European Utilities Group
+ New contract signed for specialist production support services worth £
0.6m
+ Cyclic recovery well underway in all markets, especially noticeable in
Germany
+ Jena-Tec China office established
Commenting on the results, Roger McDowell, Chairman, said:
"At the half year, I said that I believed we had reached a nadir in our
fortunes and this has proven to be the case. Our last financial year was
distressed, though the second half was stronger - albeit well below peak
performance - and I am able to report a result in line with revised market
expectations. Our strategic direction has been confirmed by recent business
wins with a variety of blue chip customers and we expect this new business to
underpin an improving performance over the next 12 months, whilst cautioning
that major customers' supply chains are not yet restored to full capacity."
Contacts:
Avingtrans plc
Tel. 01159 499 020
Steve McQuillan, CEO
Stephen King, Finance Director
FinnCap Ltd
Tel. 020 7600 1658
Marc Young/ Henrik Persson - Corporate
Finance
Brian Patient / Steve Norcross -
Corporate Broking
Hansard Communications
Tel. 020 7245 1100
John Bick
Guy McDougall
About Avingtrans plc:
Avingtrans has become a significant organisation in the design, manufacture and
supply of critical components and associated services to global industrial
markets from three divisions: aerospace, energy and medical and industrial
products.
Aerospace
Sigma Precision Components- UK and China
Sigma UK (formerly B&D Patterns) is a market leader in rigid and flexible pipe
assemblies and components for prestigious aerospace customers such as Rolls
Royce, Messier Dowty and Meggitt. Sigma China manufactures precision prismatic
components for the aerospace industry from its purpose-built facility in
Chengdu, China. With offices in the UK and China, the business offers a range
of services to the global aerospace market.
C&H Precision Finishers Ltd - UK
C&H provides final polishing and specialist finishing on aeroengine turbine
blades, compressor blades and vanes for the power generation industries.
Operating from two strategically located centres to offer a local service to
the UK aerospace industry.
Energy and Medical
Metalcraft - UKand China
Provider of safety-critical equipment for the energy, medical, science
and research communities worldwide, specialising in precision pressure
and vacuum vessels and associated sub-assemblies and systems.
Crown International- UK
Design and manufacture of market leading pole and enclosure systems,
known as the `Crown Pole' for roadside safety cameras, as well as rail
track signalling gantries and roadside signage poles for motorways and
major trunk roads.
Industrial products
Jena-Tec - Germany, UK and USA
Jenaer Gewindetechnik designs and manufactures precision ballscrews and
related products from its plant in Jena, Germany. Ballscrews are
critical in the operation and precise movement of (CNC) computer
controlled machine tools and precision instrumentation.
Jena Rotary Technologymarkets the Jena-Tec product range of precision
ballscrews and operates a rapid repair service for UK ballscrew users.
JRT designs and manufactures the Boneham & Turner (B&T) range of
spindles and acts as the UK sales and service centre for GMN (Spindles)
and a range of other OEMs.
Jena-TecInc providesa sales and support operation for the Jena-Tec
product range throughout North America.
2010 Preliminary statement
Chairman's statement
Our 2010 financial year coincided with the biggest downturn in engineering in
decades and component manufacturing businesses such as Avingtrans bore the
brunt of the squeeze. Unsurprisingly, therefore, we had a very poor year,
though we have met revised (albeit modest) market expectations. As previously
advised our second half performance showed improvement and provides a platform
to build on for the new financial year.
With the recession adversely affecting all of our markets, our on-going
programme of cost reduction and control was vital in sustaining the business
through difficult times. We believe that we have effectively preserved the
skills needed to capitalise on the upturn and to meet the needs of our OEM
partners as they restore volume through their global supply chains. Our
positive efforts in improving our capabilities have been evidenced by the
renewal or initiation of contracts with blue chip businesses like Siemens (MRI
imaging), Eaton (aerospace components and pipes) and Cummins (generator
frames). Our order book is showing a consistently improving trend and gives us
more confidence about the current financial year. However, this is not to
suggest that markets have fully recovered. Our new business wins are the key to
improving our performance and our greatly improved relationships with major
customers will continue to bear fruit as we grow once again. The recovery cycle
will continue to be variable across our three divisions and will be dependent
on the activity of our customer base. The quality of this base continues to
give us confidence that we are well-placed to take advantage any upturn in
economic activity.
As noted above, our second half performance was substantially better than in
the first half, though Group revenues are down £9m year on year, due to the
marked slowdown in orders in the period. Our manufacturing and design
capability enhancements stood us in good stead, bringing new business in the
Energy, Aerospace and Transport markets, for example. Headcount was trimmed a
little further in the second half, though the bulk of the reductions were
completed earlier and employee costs were held under tight control, including
on-going salary reductions at a senior management and Board level.
The hard work performed on organisational efficiency over the last two years
meant the difference between crisis and catastrophe, so we are pleased to have
come through this very severe recession bloodied, but unbowed and with cautious
optimism about our strong market positions and brands. Despite the downturn, we
have invested in new business locations for Metalcraft and Jena-Tec in China
and completed the transition of B&D Patterns to become Sigma UK, with the newly
integrated precision aerospace component and pipe supplier being increasingly
recognised as a strategic choice for top tier OEMs. As poor as the last year
was, it would have been far worse if we had not pushed forward with new and
enhanced customer relationships that have already begun to bear fruit and will
further blossom in the coming years. In particular, our work on quality and
delivery excellence and vertical integration activities has allowed us to win
contracts that would previously have been out of reach - for example the power
station actuation package win at Jena-Tec.
In summary, we are targeting the right growth markets and developing excellent
supply partnerships with the market leaders in those sectors. This allows us to
bring broader products and services to those customers from our specialist
niches, which, coupled with our deeper manufacturing and design skills, means
we are ready to take maximum advantage of positive market indicators, as they
arise.
Thoughts of M&A activity were naturally muted by the downturn, but we continue
to believe that opportunities for complementary acquisitions will present
themselves as the economy rejuvenates. Our strategy should enable us to enhance
shareholder value and our market positions will allow us to come out of the
current cycle stronger than many of our competitors, as we develop businesses
in new markets with enhanced value due to widening design and integration
capabilities. We are determined to bring a renewed focus to the group over the
next 18 months, intending to favour the development of our core businesses over
others.
Our performance throughout this difficult period depended heavily upon our
people and it is their dedication, skill and hard work that have brought us
safely through the downturn. I would like to express my heartfelt thanks to
them for their continuing commitment to Avingtrans.
R S McDowell
Chairman
8 September 2010
Business Review
Group Performance
Revenue: Full year Group revenue was 24% less than the prior year, coming in at
£28.6m (2009: £37.6m). The revenue reduction was across the board, all main
markets having seen some impact of the downturn. Only Crown bucked the downward
trend due to the significant contract for variable motorway signage for Balfour
Beatty. However, the second half Group revenue did show improvement from the
first half, up by £1.6m to £15.1m.
Profit: Despite the severe reduction in revenue, gross profit margins were
largely maintained at 26% (2009: 27%) whilst operating profit was significantly
down at £0.8m (2009: £2.4m). Tight cost control continued throughout the year
in response to demand reductions. Loss before tax and amortisation (and the
Sigma UK warranty claim which had a positive impact of £0.9m) was £0.3m (2009:
£2.0m profit) and EBITDA was eroded to £2.5m (2009: £4.1m).
Earnings Per Share (EPS): Adjusted diluted earnings per share, for the period
ended 31 May 2010, was 3.0p (2009: 6.2p) based on 25.5m (diluted weighted
average) shares. Basic and diluted EPS were 2.4p (2009: 5.1p).
Funding and Liquidity: The net cash flow from operations was significantly
better at £3.8m (2009: £0.4m). Net indebtedness at year end was £7.8m,
significantly lower than at the prior year end (2009: £10.1m). Balance sheet
gearing was 36.1%, down from 48.2% at 31 May 2009. In addition, continued
investment in the business of £1.2m shows that whilst we did not come to a stop
during the recession, capital investment was curtailed.
Taxation: The effective rate of tax was 29.7% (2009: 38.3%) after taking
account of the Sigma UK warranty claim.
Dividend: The Board continues to support a progressive dividend policy, but we
still believe that it is prudent to preserve cash in the business at present
and, consequently, recommend that no final dividend should be paid (2009: Nil p
per share). Looking forward, the Board will keep the dividend position under
review, taking account of the on-going changes in trading position in our
markets.
Strategy
Avingtrans is a precision engineering group, operating in differentiated,
specialist niches in the supply chains of many of the world's best known
engineering OEMs, for example: Rolls Royce, Siemens, Cummins, E.ON, etc. Our
strategy is to build market-leading niche positions in our defined sectors,
namely, the medical, energy, aerospace and environmental markets. The three
strategic thrusts remain unchanged:
* Customers: developing our key accounts and partnering or acquiring assets
to provide customers with integrated product and service offerings
* Channels: developing new channel partners in new territories and markets
with existing product capabilities
* Capabilities: strengthening core group know-how in design and manufacturing
to reduce costs and deepen our value added to our customers.
Each of the three main group businesses - Metalcraft, Jena-Tec and Sigma - now
has the capability to engineer products in Europe and produce those products
partly or wholly in China, allowing us to access low cost sourcing at low risk
for our customers, as well as positioning us robustly in the development of the
Chinese and Asian markets for our products. Despite the recession, during the
last year we have established Metalcraft and Jena-Tec businesses in China and
integrated Sigma UK in the UK and Sigma in China into one business unit. Strong
performances by the smaller group businesses - C&H and Crown - have supported
our global aims.
We have increased our capability to manage outsourced manufacturing programmes
of increasing complexity with the likes of Eaton, E.ON and Cummins, thus
accessing business of greater duration and value, with the prospect of higher
sales and reduced annual volatility.
Operations
Aerospace Division
The second half stabilised in the Aerospace Division, following the first half
reduction year on year, as Sigma China continued to make progress towards
overall breakeven, periodically making profit and producing a more consistent
monthly output pattern. B&D (renamed Sigma UK) also began to see initial
returns from recent new business wins. C&H also saw some modest new business
wins supporting the second half, with the promise of improving sales in the new
financial year. Overall civil aerospace market conditions improved remarkably,
with the global airline industry now expecting to make a profit in 2010,
according to IATA and this has already fed into some increased confidence in
the manufacturing supply base. Nevertheless, our Aerospace division revenue
declined by 10% in the year on the back of the weaker order intake in the first
half.
As previously advised, the decline in global aerospace curtailed our investment
activities in Sigma China, though some smaller capital expenditure cases have
now been approved as the picture brightens once more. Sigma China, although not
quite break-even for the whole year, improved its performance markedly and
should continue to improve as capacity expands further and now that we have
attained critical mass, efficiencies naturally follow. The £1m long term
agreement signed with Moog earlier in the year is expected to be the first of a
number with key aerospace customers.
After the year end, B&D Patterns formally changed its name to Sigma Precision
Components UK Ltd (Sigma UK, for short). This change was made in recognition of
the fact that B&D has now completed its transition to become a strategic
supplier to aerospace OEMs in our chosen niche sectors and that the UK and
Chinese businesses are increasingly operating as one international unit. Our
customers tell us that the emerging unified business is working in exactly the
way they want, to create a global "derisked" low cost supply chain for them.
Recent long term agreements signed with the likes of Eaton and Meggitt (worth a
combined £10m over 5 years) are testament to the fact that we are now
considered to be a suitable strategic partner for the future. Sigma UK now has
an enviable quality reputation and is developing a strong design for
manufacture and low cost transition capability that is exciting the top tier
OEMs. With the legacy issues at B&D finally resolved last year, we are
anticipating renewed vigour from the fully integrated Sigma business in 2011.
As noted in the first half, the resolution of the warranty claim in July 2009
with the former owners of B&D saw the return of £932k after costs.
C&H saw some softening of demand, but came through the year relatively
unscathed, as earlier cost controls and headcount reductions stabilised the
business at an acceptable level and some pick-up in sales in the second half
was assisted by contract extensions with a number of customers. The Cheltenham
facility has had a more turgid time than the main business in Nottingham, but
both have continued to provide valuable service to our major customers and the
business expects to further expand its range of services in the forthcoming
year.
Energy and Medical Division
The Energy and Medical Division was badly affected overall by the recession,
with the combination of the forecast lower business level from Siemens on the
Medical side being compounded by a much slower build up in the new contract
with Cummins. Metalcraft had a very poor year in consequence, as specific
project work also dried up in the same period and nuclear energy projects were
delayed due to matters beyond our control. The new year promises to show some
improvement, however, with a new expanded contract with Siemens and an
accelerating build up of volume on the Cummins contract continuing. Crown had a
better year than 2009, thanks to the initial contract in the new field of
variable motorway signage for Balfour Beatty. Overall, although there was a
modest pick-up in second half output, the division suffered a 30% reduction in
revenue year on year.
Through this relatively gloomy year at Metalcraft, we have good reasons to
expect steady improvement:
Medical: the Siemens relationship has improved markedly, with an updated
contract being recently signed including provision for new product supply over
the next two years. Siemens remains the market leader in the magnetic resonance
imaging (MRI) sector and this is therefore very good news. We have also secured
high field MRI contracts with several other customers, underlining the on-going
expertise of Metalcraft in this area.
Power Systems: during the year, we signed the £8m, three year contract with
Cummins for generator frames and volumes of this product are now finally being
shipped after a rather protracted start beyond our control which negatively
affected Metalcraft's performance in the year. In addition, it is clear that
Cummins is increasing its own business forecasts, which should feed through to
increased business for us in due course. Tentative first steps have been taken
to secure business with other customers in this sector.
Oil and Gas: whilst there was no repeat in the period of the £4m floating
production system project with Exterran, we did successfully complete a
smaller, £0.6m contract for them.
Nuclear: the pace of progress is frustratingly slow for all manufacturers in
the sector, but we did secure a number of small projects with Costain, the
balance of which will be delivered this year and we recently signed the £1.5m
framework agreement with Sellafield for vitrification plant components. Looking
forward, as well as being approved by AREVA for nuclear new build supply, Rolls
Royce has also qualified us as a potential supplier to Westinghouse and we are
building up our nuclear industry profile.
China is gathering momentum as a focus of development effort for Metalcraft,
with part of the agreement with Siemens being to supply them with products from
our Chengdu facility, starting in 2011.
In April this year, we were delighted to launch our Fenland Engineering
Training School and the facility has accepted its first apprentices.
Crown International successfully delivered its first £1.25m order for the new
variable signage poles to Balfour Beatty - currently being integrated into the
M4 motorway upgrade project. A number of follow-on projects are in prospect.
The combination of the recession and some negative market sentiment meant that
the safety camera product volumes were subdued in the year, but our reliance on
the UK market is largely limited now to replacement and servicing the existing
base in any event. Export prospects for this product are brighter.
Industrial Products Division
After a particularly weak first half, driven by the weakness of the global
machine tools market, Jena-Tec rallied in the second half, to finish the year
27% down on sales versus the previous year (having been 39% down at the halfway
mark). This was a creditable performance in the circumstances and ahead of its
competition over the year. Cyclic recovery is now well underway in all of
Jena-Tec's markets in a familiar post-recession pattern.
Accordingly, whilst the part time working initiative in Germany continued
throughout the year, this is now coming to an end, as markets recover. Earlier
headcount reductions in the UK succeeded in keeping costs under control in the
second half and we have now begun to take on new employees again in the UK.
The safety critical actuation system upgrade order (£0.5m) was successfully
completed and installed in a conventional power station and this success should
lead to further orders in the new financial year. A marketing campaign is
underway to promote the new solution, which represents a major strategic step
forward for Jena-Tec.
In a further strategic coup, Jena-Tec secured a £0.6m order with a Tier 1
Automotive supplier to upgrade specialist engine production facilities,
building on the enabling acquisition of Moss Group Automation in 2009. This
order will be completed before the end of the next financial year. The breadth
of service and support solutions available to Jena-Tec's customers has now
taken us into a different category of supply which we will enhance further
going forward.
Miniature ballscrew production continues from strength to strength, with
further medical OEMs coming on board as customers in the last 12 months and
this capability will be used more widely, as we seek to penetrate the aerospace
sector for ballscrews also.
With increasing enquiries and orders coming from Asia and China in particular,
we are establishing a Chinese presence for Jena-Tec, meaning all three
divisions are now present in China, underlining the importance of this
burgeoning market to the group.
People
With the addition in the year of Dr Graham Thornton as a Non-Executive
Director, the Board is complete and there have been no other changes at Board
or senior management level.
We are strengthening management whenever an opportunity presents itself,
consistent with strategy and we have made good strides forward with the
addition of skilled engineering and technical personnel across a number of
group businesses. With the successful opening of the engineering school at
Chatteris, we are also confident that we can grow the skills needed for the
future of our business and for the local economy there.
Outlook
Now that the worst of the severe global recession is behind us, we can look
forward to some improvement in performance, assuming that there is no
pronounced "double dip" effect over the next year. Although economic progress
remains patchy, we can now see improving order books for most of our
businesses. We will continue to remain vigilant on the cost side of the
business, to ensure that we do not suffer unduly from any remaining market
perturbations.
Our clear strategic direction has enabled us to win important new contracts
that will increasingly support our results in this financial year and beyond.
The quality of our customer base should ensure that we are better than
averagely able to take advantage of the on-going world economic recovery.
Therefore, we expect steady improvement in our financial performance for the
coming year, assuming macroeconomic trends remain positive.
Our strategy to focus on differentiated, highly engineered product niches
offers some limited degree of protection to cyclical markets. As stated before,
we remain well placed to benefit from structural changes in our markets and to
regrow as global industrial markets recover, with the increasing brand strength
of Metalcraft, Sigma and Jena-Tec promising to be positively decisive in the
years ahead, even more so once we are able to support our core future business
though appropriate M&A activity.
Roger McDowell Steve McQuillan Stephen King
Chairman Chief Executive Finance Director
8 September 2010 8 September 2010 8 September 2010
Consolidated Income Statement
for the year ended 31 May 2010
Year to Year to
31 May 31 May
2010 2009
£'000 £'000
Revenue 28,578 37,559
Cost of sales (21,124) (27,427)
Gross profit 7,454 10,132
Distribution costs (806) (955)
Administrative expenses (6,488) (6,635)
Share based payment expense (19) 88
Warranty claim 932 -
Restructuring costs (145) (71)
Amortisation of intangibles from business (137) (137)
combinations
Operating profit 791 2,422
Finance income 11 2
Finance costs (332) (595)
Profit before taxation 470 1,829
Taxation 137 (701)
Profit for the financial year 607 1,128
Earnings per share :
Total and continuing operations
- Basic 2.4p 5.1p
- Diluted 2.4p 5.1p
Consolidated statement of comprehensive income
Year to Year to
31 May 31 May
2009 2008
£'000 £'000
Profit for the year 607 1,128
Other comprehensive income for the year,
net of tax
Exchange differences on translation of (8) 338
foreign operations
Total comprehensive income for the year 599 1,466
Consolidated cash flow statement
for the year ended 31 May 2010
Note Year to Year to
31 May 31 May
2010 2009
£'000 £'000
Operating activities
Cash flows from operating activities 3,756 356
Finance costs paid (332) (597)
Income tax repaid/(paid) 94 (145)
Net cash inflow/(outflow) from operating 3,518 (386)
activities
Investing activities
Finance income 11 2
Purchase of intangible assets (448) (420)
Purchase of property, plant and equipment (864) (2,022)
Proceeds from sale of property, plant and 76 19
equipment
Net cash used in investing activities (1,225) (2,421)
Financing activities
Dividends paid - (132)
Repayments of borrowings (667) (642)
Repayments of obligations under finance leases (1,226) (1,103)
Proceeds from issue of ordinary shares - 3,654
Borrowings raised 580 1,271
Net cash (outflow)/inflow from financing (1,313) 3,048
activities
Net increase/(decrease) in cash and cash 980 241
equivalents
Cash and cash equivalents at beginning of year (2,255) (2,534)
Effect of foreign exchange rate changes (4) 38
Cash and cash equivalents at end of year (1,279) (2,255)
Cash generated from operations:
for the year ended 31 May 2010
Year to 31 Year to 31
May 2010 May 2009
£000 £000
Continuing operations
Profit before income tax 470 1,829
Adjustments for:
Depreciation 1,387 1,434
Amortisation and impairment of intangible 340 264
assets
Profit on disposal of property, plant and (51) (9)
equipment
Finance income (11) (2)
Finance expense 332 595
Share based payment charge/(credit) 19 (88)
Changes in working capital
Decrease/(increase)in inventories 174 (255)
Decrease/(increase) in trade and other 1,440 (1,845)
receivables
(Decrease) in trade and other payables (357) (1,584)
Other non cash charges 13 17
Cashflows from operating activities 3,756 356
Consolidated balance sheet
at 31 May 2010
2010 2009
£'000 £'000
Non current assets
Goodwill 10,242 10,242
Other intangible assets 2,050 1,941
Property, plant and equipment 10,090 11,308
Investment property 600 -
Deferred tax 39 38
Available for sale financial assets 219 219
23,240 23,748
Current assets
Inventories 6,634 6,952
Trade and other receivables 7,479 8,914
Current tax asset 64 321
Cash and cash equivalents 1,097 634
15,274 16,821
Total assets 38,514 40,569
Current liabilities
Trade and other payables (5,849) (6,323)
Obligations under finance leases (810) (1,247)
Borrowings (3,040) (3,543)
Current tax liabilities (479) (759)
Total current liabilities (10,178) (11,872)
Non-current liabilities
Borrowings (3,600) (4,264)
Obligations under finance leases (1,483) (1,729)
Deferred tax (1,413) (1,436)
Deferred consideration (154) (200)
Total non-current liabilities (6,650) (7,629)
Total liabilities (16,828) (19,501)
Net assets 21,686 21,068
Equity
Share capital 1,274 1,274
Share premium account 9,534 9,534
Capital redemption reserve 814 814
Merger reserve 402 402
Translation reserve 628 636
Other reserves 180 180
Retained earnings 8,854 8,228
Total equity attributable to equity 21,686 21,068
holders of the parent
Consolidated statement of changes in equity
at 31 May 2010
Share Share Capital Merger Trans- Other Retained Total
Capital premium redemp- reserve lation reserves earnings
Account account tion reserve
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 June 2008 882 6,272 814 402 298 180 7,320 16,168
Dividends paid - - - - - - (132) (132)
Share-based - - - - - - (88) (88)
payments
New share 392 3,405 - - - - - 3,797
issue
Costs of share - (143) - - - - - (143)
issue
Transactions 392 3,262 - - - - (220) 3,434
with owners
Profit for the - - - - - - 1,128 1,128
year
Other
comprehensive
income
Exchange rate - - - - 338 - - 338
gain
Total - - - - 338 - 1,128 1,466
comprehensive
income for the
year
Balance at 31 1,274 9,534 814 402 636 180 8,228 21,068
May 2009
At 1 June 2009 1,274 9,534 814 402 636 180 8,228 21,068
Dividends paid - - - - - - - -
Share-based - - - - - - 19 19
payments
Transactions - - - - - - 19 19
with owners
Profit for the - - - - - - 607 607
year
Other
comprehensive
income
Exchange rate - - - - (8) - - (8)
loss
Total - - - - (8) - 607 599
comprehensive
income for the
year
Balance at 31 1,274 9,534 814 402 628 180 8,854 21,686
May 2010
Notes to the preliminary statement
31 May 2010
1. Segmental analysis
Year ended 31 May Aerospace Energy Industrial Unallocated Total
2010 and
Products Central
Medical
items
£'000 £'000 £'000 £'000 £'000
Revenue 9,632 12,177 6,769 - 28,578
Operating profit 132 (58) 83 634 791
(loss)
Net finance costs (321)
Taxation 137
Profit after tax 607
Segment non-current 9,641 9,490 3,854 255 23,240
assets
Segment assets 14,640 15,662 7,895 317 38,514
Segment liabilities (4,513) (4,666) (2,790) (4,859) (16,828)
Net assets/ 10,127 10,996 5,105 (4,542) 21,686
(liabilities)
Year ended 31 May Aerospace Energy Industrial Unallocated Total
2009 and
Products Central
Medical
items
£'000 £'000 £'000 £'000 £'000
Revenue 10,716 17,509 9,334 - 37,559
Operating profit (73) 1,583 1,051 (139) 2,422
(loss)
Net finance costs (593)
Taxation (701)
Profit after tax 1,128
Segment non-current 10,098 9,520 3,890 240 23,748
assets
Segment assets 14,917 17,058 8,250 344 40,569
Segment liabilities (5,243) (5,687) (3,323) (5,248) (19,501)
Net assets/ 9,674 11,371 4,927 (4,904) 21,068
(liabilities)
Geographical
2010 2009 2010 2009
Revenue Revenue Non-current Non-current
assets assets
£'000 £'000 £'000 £'000
United Kingdom 22,251 29,163 18,176 18,655
Europe 5,176 7,829 3,250 3,264
North America 1,559 1,407 5 7
Rest of the 750 616 1,809 1,822
World
Eliminations (1,158) (1,456) - -
28,578 37,559 23,240 23,748
The Group has revenue of £3,545,000 (Aerospace) and £4,171,000 (Energy &
Medical) with single external customers which each represent more than 10% of
revenue.
2. Taxation
2009 2009
£'000 £'000
Current tax (113) 283
Deferred tax (24) 418
(137) 701
3. Earnings per share
2010 2009
No No
Weighted average number of shares - basic 25,480,577 21,933,317
Warrant/ Share Option adjustment 44,478 6,961
Weighted average number of shares - diluted 25,525,055 21,940,278
£'000 £'000
Earnings attributable to shareholders 607 1,127
Share-based payments 19 (88)
Amortisation of intangibles 137 137
Sigma deferred consideration release - (201)
Withdrawal of IBA's - 383
Adjusted earnings attributable to shareholders 763 1,358
Basic earnings per share 2.4p 5.1p
Adjusted basic earnings per share 3.0p 6.2p
Diluted earnings per share 2.4p 5.1p
Adjusted diluted earnings per share 3.0p 6.2p
4. Preliminary statement
This preliminary statement, which has been agreed with the auditors, was
approved by the Board on 8 September 2010. It is not the Group's statutory
accounts within the meaning of Section 434 of the Companies Act 2006.
The statutory accounts for the two years ended 31 May 2010 and 2009 received
audit reports which were unqualified and did not contain statements under s498
(2) or (3) of the Companies Act 2006. The statutory accounts for the year ended
31 May 2009 have been delivered to the Registrar of Companies but the 31 May
2010 accounts have not yet been filed.
5. Annual report and Accounts
The Report and Accounts for the year ended 31 May 2010 will be available on the
Group's website www.avingtrans.plc.uk on or around 21 September 2010. Further
copies will be available from the Avingtrans' registered office:
Precision House, Derby Road, Sandiacre, Nottingham, NG10 5HU
6. Annual General Meeting
The Annual General Meeting of the Group will be held at The Holiday Inn,
Bostocks Lane, Sandiacre, Nottingham NG10 5NL at 10.00 a.m. on 13 October 2010.
Friday, 3rd January 2025
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