Interim Results

Avingtrans PLC
21 February 2003

Avingtrans plc

Interim results for the six months to 30 November 2002



Highlights


                                           Six months to 30 November 2002     Six months to 30 November 2001

                                                       £'000                              £'000
Turnover                                               2,002                               Nil
EBITDA                                                  307                               (120)
EBIT                                                    162                               (120)
Basic EPS                                               1.6p                              (0.2)p
EPS before goodwill amortisation                        1.8p                              (0.2)p



•    Acquisition of Jena Group completed 28 June 2002

•    Directors subscribe to 727,273 new shares

•    Ken Baker appointed Chairman 30 June 2002

•    Integration of Jena Group successfully completed

•    Jena appointed exclusive UK agent for leading European spindle
     manufacturer from 1 January 2003

•    Profit and cash generation in line with expectations

Ken Baker, Chairman, commented: 'This reporting period includes the first five
months of trading after the acquisition of the Jena Group of companies on 28
June 2002, operating in the field of precision equipment and critical services
to manufacturing in the UK, Germany and USA.  A lot of work has been performed
by the Board during that period to integrate the Jena companies and I am
delighted to report that the Company was profitable and cash generative during
that time, notwithstanding difficult trading conditions and the need to perform
a good deal of administrative work to implement the integration.  Your Board
therefore looks forward with cautious confidence to the future.'



Enquiries:

Avingtrans plc
Ken Baker, Steve Lawrence         0115 939 4707

Bridgewell Limited
Greg Aldridge                     0207 003 3000



Chairman's Statement

I am pleased to announce the results of Avingtrans plc for the six months ended
30 November 2002. These results are the first following the acquisition by
Avingtrans of the Jena Group of companies ('Jena Group'), which were acquired on
28 June 2002.  Following this acquisition, Avingtrans' business is in the field
of precision equipment and critical services to manufacturing in the UK, Germany
and USA.

The period covered by these results includes one month during which the Company
had no operating business and income was derived only from interest on bank
deposits and five months of trading by the Jena Group.  The comparative figures
represent a time when Avingtrans had no trading activities and do not represent
the performance of the Jena Group.


Results

For the six months ended 30 November 2002 earnings before interest, tax,
depreciation, and goodwill amortisation (EBITDA) was £307,000 (2001: £120,000
loss) on turnover of £2,002,000  (2001: nil).

Operating profit for the period was £162,000 (2001: £120,000 loss)

The Company had a positive cash flow from operations during the period of
£133,000 and at 30 November 2002, had cash at bank and in hand of £1,204,000
with a net cash balance of £941,000.


Earnings per share

Earnings per share, for the period ended 30 November 2002, before goodwill
amortisation, were 1.8p (2001: 0.2p loss).

Earnings per share after goodwill amortisation and full dilution were 1.6p
(2001: 0.2p loss)


Dividend

The Board is not recommending a dividend for the half year.


Six months review

Operations during a difficult five months of trading were broadly to
expectations.  The Jena Group was profitable during the first five months of its
ownership by Avingtrans and achieved positive operating cash flows. Profit
margins were maintained at acceptable levels due to improved manufacturing
efficiency and a redeployment of assets in the USA.  A trend of increasing order
intake and sales activity levels was observed during the period, starting from a
low base at the beginning of the year.

A number of new opportunities for the Company's products and services were
processed during the six months under review. New market sectors addressed by
the Company as a result include high value equipment spindles in the UK and the
supply of polishing and finishing services to the medical equipment sector.

Expenditure on capital equipment during the six months at £73,000, enabling the
Company to keep all operating plant and equipment in good working condition and
productively effective.


Directors

As previously noted in the annual report for the year ended 30 May 2002 a number
of changes and additions were made to the board of directors of the company
during the six months ended 30 November 2002.

On 30 June 2002 K.M.Baker, previously a Non-executive Director, was appointed
Chairman of the Board.  S.M.Bruh, who had previously been an Executive Director
and J.J.Hamer have continued as Non-executive Directors. On the same date,
S.J.Lawrence, Managing Director of the Jena Group, was appointed to the Board as
an Executive Director.

On 2 September 2002, S.M.King joined the Company from PricewaterhouseCoopers and
was appointed to the Board as Finance Director and Company Secretary.


Strategy and Prospects

In the 2002 annual report, the Board announced its aim to use its combined
experience to build Avingtrans over the next few years with the objectives of
generating long-term earnings per share growth, cash generation and a
sustainable dividend policy. The acquisition of the Jena Group and its
successful integration over the six months ended 30 November 2002 sees the start
of this process.

During a difficult trading time the Jena Group has performed well and prospects
for the second half of the financial year continue to look favourable with a
trend in slowly increasing enquiry levels and orders. Management continues to
effect the strategy through the gaining of new business and the launch of new
products and services against a background of productivity improvement and
efficiency.  Management is also seeking to augment this organic growth with
suitable acquisitions, a selected number of which are under review.

Over the last six months a good deal of administrative work has been necessary
to finalise and close of matters arising from prior year's events. This work has
now been largely achieved and your Board looks forward with cautious confidence
to the future.


K.M.Baker
Chairman


Consolidated Profit and Loss Account

                                                                   6 mths to       6 mths to
                                                                 30 November     30 November      12 mths to
                                                                        2002            2001     31 May 2002
                                                                   Unaudited       Unaudited         Audited
                                                                       £'000           £'000           £'000
                                                                                                       
                                                        Note
Turnover
Current period acquisitions                                            2,002               -               -

Operating profit before amortisation                                     175               -               -
Amortisation of goodwill                                                (13)               -               -

Operating profit/(loss)
Current period acquisitions                                              243               -               -
Continuing operations                                                   (68)           (120)           (498)
Goodwill amortisation                                                   (13)               -               -


Operating profit/(loss)                                                  162           (120)           (498)

Profit/(loss) on ordinary activities before interest                     162           (120)           (498)
Net interest payable and similar charges                                 (3)             109             189

Profit/(loss) on ordinary activities before taxation                     159            (11)           (309)
Tax on profit on ordinary activities                       3            (50)               -               -

Retained profit for the period                                           109            (11)           (309)


Earnings per share                                         4
Basic                                                                   1.6p          (0.2)p          (4.9)p
Basic - before goodwill amortisation                                    1.8p          (0.2)p          (4.9)p
Diluted                                                                 1.6p          (0.2)p          (4.9)p
Diluted - before goodwill amortisation                                  1.8p          (0.2)p          (4.9)p




Statement of Total Recognised Gains and Losses

                                                               6 mths to 30     6 mths to 30
                                                              November 2002    November 2001      12 mths to 31
                                                                  Unaudited        Unaudited           May 2002
                                                                                                       Audited
                                                                      £'000            £'000             £'000

Profit for the financial period                                         109             (11)           (309)
Other recognised gains and losses
Currency translation loss                                              (33)                -               -

Total recognised gains relating to the period                            76             (11)           (309)




Summarised Consolidated Balance Sheet


                                                             At 30 November            At 30           At 31
                                                             2002 Unaudited    November 2001        May 2002
                                                                     £'000         Unaudited         Audited     
                                                                                       £'000           £'000

Fixed assets
Intangible assets                                                       613                -               -
Tangible assets                                                       1,914                -               -

                                                                      2,527                -               -


Current assets
Stocks                                                                1,430                -               -
Debtors due within one year                                             605               93               1
Cash at bank and in hand                                              1,204            4,399           4,080

                                                                      3,239            4,492           4,081
Creditors: Amounts falling due within one year                        (926)            (153)           (252)

Net current assets                                                    2,313            4,339           3,829


Total assets less current liabilities                                 4,840            4,339           4,041

Creditors: Amounts falling due after more than one year               (417)                -               -

Provisions for liabilities and charges                                   94                -               -

Net assets                                                            4,517            4,339           4,401


Capital and reserves
Called up share capital                                                 352              316             316
Share premium account                                                 3,611            3,247           3,247
Capital redemption reserve                                              813              813             813
Other reserves                                                          180              180             180
Profit and loss account                                               (439)            (217)           (515)

                                                                      4,517            4,339           4,041




Consolidated Cash Flow Statement
                                                               6 mths to 30      6 mths to 30      12 mths to
                                                               November 2002    November 2001     31 May 2002
                                                                   Unaudited        Unaudited         Audited
                                                                       £'000            £'000           £'000

Net cash inflow/(outflow) from operating activities                    133              (103)           (388)

Returns on investment and servicing of finance
Net interest                                                           (3)                (1)             189

Net cash (outflow)/inflow from returns on investment and               (3)                (1)             189
servicing of finance

Taxation                                                             (158)                  -               -

Capital expenditure and financial investment
Purchase of fixed assets                                              (73)                  -               -
Sale of fixed assets                                                    15                  -               -
Net cash outflow from capital expenditure and financial               (58)                  -
investment

Acquisitions and disposals
Purchase of subsidiary undertakings                                (3.374)                  -           (212)
Net cash acquired with subsidiaries                                     50                  -               -
Net cash outflow from acquisitions and disposals                   (3,324)                  -           (212)

Equity dividends                                                         -                  -               -

Financing
Issue of share capital                                                 400                  -               -
Repayment of loan capital                                              (8)                  -               -
Capital element of finance lease payments                             (89)                  -               -
Net cash inflow from financing                                         303                  -               -

(Decrease) in cash                                                 (3,107)              (104)           (411)




Reconciliation of Operating Profit to Net Cash Flow from Operating Activities


                                                             6 mths to 30         6 mths to 30      12 mths to
                                                            November 2002        November 2001     31 May 2002
                                                                     £'000               £'000           £'000

Operating profit/(loss)                                                 -                   -           (498)
Amortisation of intangible assets and goodwill                         15                   -               -
Depreciation of tangible fixed assets                                 130                   -               -
(Profit) on disposal of tangible fixed assets                         (2)                   -               -
(Increase) in stocks                                                 (79)                   -               -
Decrease/(increase) in Debtors                                        166                (29)               -
(Decrease)/increase in Creditors                                    (259)                  45           (110)

Net cash inflow/(outflow) from operating activities                   133               (104)           (388)




NOTES



1.  This interim report was approved by the Board on 20 February 2003.  It has 
    been prepared using accounting policies that are consistent with those
    adopted in the statutory accounts for the year ended 31 May 2002.

    The figures for the year to 31 May 2002 were derived from the statutory 
    accounts for that year.  The statutory accounts for the year ended 31
    May 2002 have been delivered to the Registrar of Companies and received an 
    audit report which was unqualified and did not contain statements under 
    s237(2) or (3) of the Companies Act 1985.

2.  This statement is being sent to shareholders of the Company and will be 
    available at the Company's Registered Office.

3.  The taxation charge is based upon the expected rate for the year ended 
    31 May 2003.

4.  Earnings per share has been calculated using the weighted average number of 
    6,930,579 Ordinary Shares in issue during the period (2001: 6,322,531)
    (Audited 2002: 6,322,531).

5.  Capitalised goodwill amounting to £621,000 is being amortised over twenty 
    years on a straight line basis. Goodwill has been calculated on book value 
    pending a final review of the fair value of assets acquired during the
    period.


6.  Analysis of Net Cash

                                                                        
                                                                        Exchange           30 Nov.
                              1 June 2002            Cash flow          movement              2002
                                    £'000                £'000             £'000             £'000
                                                                           

Cash at bank and in hand            4,080              (2,877)                 1             1,204
Bank overdraft                       (34)                (230)                 1             (263)

Cash                                4,046              (3,107)                 2               941


7.             Reconciliation of movements in Shareholders' Funds


                                                    6 mths to 30        6 mths to 30
                                                   November 2002       November 2001         12 mths to 31
                                                       Unaudited           Unaudited              May 2002   
                                                                                                   Audited
                                                           £'000               £'000                 £'000

Profit/(loss) for the financial period                       109                (11)                 (309)
Currency translation loss                                   (33)                   -                     -
Proceeds of share issue                                      400                   -                     -

Increase/(decrease) in shareholders' funds                   476                (11)                 (309)
Opening shareholders' funds                                4,041               4,350                 4,350

Closing shareholders' funds                                4,517               4,339                 4,041




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