Trading Update
Avingtrans Plc
("Avingtrans" or the "Company" or the "Group")
Trading Update
Avingtrans (AIM:AVG), a manufacturer of critical components and associated
services to the medical, energy, industrial and global aerospace sectors is
pleased to announce the following pre-close trading update following the end of
its financial year to 31 May 2012. It is expected that the preliminary results
for the year then ended will be announced during week commencing 17th September
2012.
Group sales are expected to be approximately 20% ahead of the previous year, in
line with market expectations, with all divisions contributing to this growth.
Similarly, operating profit is also expected to be ahead of last year and in
line with expectations, reflecting on-going improvements in the Group's
performance.
Aerospace
The Company is particularly pleased to report improved overall performance in
the Aerospace division. This divisional performance is all the more creditable,
given that the Group continues to invest in building the recently formed Sigma
Composites business and, while initial sales levels have been lower than had
been hoped for, the belief remains that this investment will contribute
strongly to the Aerospace division in the future.
Looking forward, the Company is pleased to announce that it is in final
negotiations with the European Union to participate in its "Clean Sky"
programme to develop new technology for more environmentally sustainable
aircraft, rotorcraft and propulsion systems. Clean Sky is supported by many of
Europe's leading aerospace OEMs. In April 2012, Sigma and its partner TWI, a
leading independent research and technology organisation, responded to Clean
Sky's call to develop non-metallic pipes for aero engines. The contract is
valued at EUR1.7 million.
We are delighted to report that Sigma has been selected as preferred bidder
against strong competition. Providing that the final details can be agreed,
the Sigma and TWI consortium should receive a contract in August. The
programme is expected to last 18 months.
This project fits perfectly with Sigma's technology development roadmap and
ambition to generate intellectual property. Since the project will lean heavily
towards composite materials, Avingtrans' recent acquisition of Sigma Composites
and TWI's expertise in composites joining and thermoplastics were key factors
in Clean Sky's decision process.
Industrial
Industrial Products has had a solid year with strong results in Germany and the
USA. Recently, Jena Tec's automation division, Moss Group, received orders
worth approximately £600,000. Notable amongst these is a £450,000 order from
Nissan Manufacturing UK for the automotive transfer line upgrades for a new
engine variant introduction, awarded by Nissan in May 2012 and will comprise
the supply and integration of conveyor systems, fixtures, transfer tables and
ancillary systems.
This will be integrated in Nissan's Sunderland plant in December 2012, where
Jena Tec will provide a complete turnkey retrofit, as Nissan UK expands its
production capability for newer engine models.
Energy and Medical
As previously stated at the half year, the performance of the Energy and
Medical division has been held back by delays to the next generation MRI
systems being developed by Siemens and, specifically in relation to the Group's
Crown business, on-going market weakness in the transport infrastructure
sector. The Siemens programme is however progressing, albeit slower than
anticipated and Crown is awaiting final confirmation of a new £200k contract
for CCTV infrastructure on the M4/M5 Managed Motorway programme. In response to
market weakness, measures have been taken at Crown to manage costs to an
absolute minimum.
Beyond the two key factors above, however, the flow of work for the division
from other key customers - eg Cummins - has been satisfactory and new project
wins are in line with forecasts.
Group Outlook
Although market conditions continue to be challenging, buoyed by positive
trends in the Aerospace sector, we remain confident overall in continuing to
perform in line with market expectations.
Enquiries:
Avingtrans plc 0115 949 9020
Steve McQuillan, CEO
Stephen King, CFO
FinnCap
Marc Young / Henrik Persson - Corporate Finance 020 7600 1658
Brian Patient / Victoria Bates - Corporate Broking
Newgate Threadneedle 020 7653 9850
(Financial PR)
Josh Royston/ Guy McDougall
About Avingtrans
Avingtrans plc is engaged in the provision of highly engineered components
and services to the energy, medical, scientific and research communities,
traffic management, automation, machinery and aerospace industries
worldwide.
The business is made up of 3 divisions:
• Aerospace, engaged in the manufacture of rigid pipe assemblies and
prismatic components for aero engines and precision polishing of aircraft
components;
• Energy and medical, engaged in the manufacture of machined and fabricated
pressure and vacuum vessels and components for the energy, medical, science
and research communities. Design and manufacture of fabricated poles and
cabinets for roadside safety cameras and rail track signalling and;
• Industrial products, engaged in the design, manufacture, distribution and
service of precision ballscrews, spindles and related linear and rotary
products servicing the original equipment and after markets in global
industry.
TWI
TWI is one of the world's foremost independent research and technology
organisations, with expertise in solving problems in all aspects of
manufacturing, fabrication and whole-life integrity management technologies.
Established in Cambridge, in 1946 and with several facilities across the globe,
the company has a first class reputation for service through its teams of
internationally respected consultants, scientists, engineers and support staff,
whose knowledge and expertise are available to its Industrial Members as and
when they require.