Interim Results

Avingtrans PLC
24 February 2004




                                 AVINGTRANS PLC

           INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2003

Avingtrans plc ('Avingtrans' or 'the Company') is pleased to announce its
results for the six months to 30 November 2003.


HIGHLIGHTS                                                       Six months to 30  Six months to    Change
                                                                   November       30 November
                                                                      2003             2002


Turnover                                                            £2,646,000      £2,002,000      +32.2%
Operating profit before goodwill                                     £184,000        £175,000        +5.1%
Profit before tax and goodwill                                       £163,000        £172,000        -5.2%
Earnings per share before goodwill                                     2.1p            1.8p         +16.7%
Diluted earnings per share before goodwill                             2.1p            1.8p         +16.7%


  • Earnings per share growth 17%

  • Net cash of £297,000 as at 30 November 2003

  • Adjusted sales growth of 12% in difficult capital goods market

  • Completed the acquisition of Boneham and Turner assets and business
    interests in September 2003

  • New 15,000sq.ft. technology and service centre in Nottinghamshire

  • Complete supply and service offering across ballscrew and spindle market


For Further information:

Avingtrans                        01159 499 020
Ken Baker, Executive Chairman
Stephen King, Finance Director


Chairman's Statement

I am pleased to announce the results of Avingtrans plc for the six months ended
30 November 2003. These results cover a full six months of trading compared to
the previous interim period ended 30 November 2002 where only five months of
trading were registered following the acquisition of the Jena Group on 28 June
2002. These results include the full cost and cash flow effect of the purchase
of the assets and ongoing business interests of Boneham & Turner Spindles (B&T)
that was acquired in September 2003. B&T, formerly a division of Boneham &
Turner Limited, Mansfield, is a leading supplier of precision powered spindles
for industrial applications in the automation and machinery markets of the EU,
USA and Asia. B&T commenced contributing fully to the Group's revenue and income
for the last two months of the period following relocation to our newly combined
Jena Rotary Technology Limited and B&T facility at Sherwood Park, North
Nottinghamshire.  Following the purchase of B&T, Avingtrans' business is
broadened in the supply of precision equipment and critical services to
manufacturing in the UK, Germany and USA.


Results

For the six months ended 30 November 2003 operating profit before amortisation
was £184,000 (2002: £175,000) a 5% increase on the prior year. Sales for the
period under review were £2,646,000 (2002: £2,002,000) an effective 12% uplift
on the prior year after allowing for the extra month of sales in the current
period. Profit attributable to shareholders was £110,000 (2002: £109,000).

The Company had a cash inflow from operations of £19,000 (2002: £133,000) during
the period, reflecting the increased working capital requirement following the
purchase of B&T. At 30 November 2003, Avingtrans had cash at bank and in hand of
£475,000 with a net cash balance of £297,000.


Earnings per share

Earnings per share, for the period ended 30 November 2003, before goodwill
amortisation, were 2.1p (2002: 1.8p) a 16% increase.

Earnings per share after goodwill amortisation and full dilution were 1.6p
(2002: 1.6p) no increase.


Dividend

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


Six months review

Overall sales levels during a difficult six months of trading were broadly to
expectations.  The markets for our manufactured products and precision polishing
services however remained depressed with no significant uplift in economic
activity in Germany or the UK.

To offset the reduction in activity at C&H in our precision polishing and
finishing service for UK aerospace turbine blades, an investment was made in a
new plate polishing facility and the development of our non-destructive testing
activities.

At Jenaer Gewindetechnik (JGWT), our German manufacturing plant for precision
ballscrews used by aerospace and machinery manufacturers, some reduction in
labour activity was initiated to counter the downturn in activity and new
customers were successfully sought for a new range of miniature ballscrews used
in medical and scientific applications.

Preliminary results from these actions at both facilities appear promising for
the future. Both facilities remained profitable.

In the latter part of the period, a significant reduction in the value of the US
dollar against both the Euro and the Pound Sterling impacted margins on our
products sold to the USA, which traditionally accounts for around 10% of annual
turnover.

On a positive note and as previously reported, Jena Rotary Technology, of
Cossall, Nottinghamshire and B&T of Mansfield Nottinghamshire were in October
both relocated to our new technology centre housed in a modern fifteen thousand
square feet facility at Sherwood Park, North Nottinghamshire. The location is
convenient for staff from both operations and enjoys good links to the M1
motorway and the East Midlands Airport.  The relocation was completed ahead of
schedule but was not fully operational until the end of November 2003. The
merger of these two Avingtrans units was well received by UK industry and
enjoyed a high start up level of enquiries and orders during the period under
review. The Sherwood Park facility was also during October 2003 made the centre
for our merchanting activity of GMN spindles. GMN is the premier German producer
of high-speed spindles in Europe. The Avingtrans Group now offers a complete
range of supply and service on spindles and ballscrews for UK manufacturing
industry from one integrated location.

Excluding the sums capitalised in the B&T purchase, a total of £154,000 was
spent on new equipment during the period.


Directors and Administration

As previously noted in the annual report for the year ended 30 May 2003,
K.M.Baker formerly Non-executive Chairman was appointed Executive Chairman on 30
September 2003.

On 20 August 2003 the High Court of Justice Chancery Division approved the
cancellation of the Share Premium Account and transfer to the Profit and Loss
Reserves, Shareholders approved this proposal on 17 July 2003. These actions
release the Company from the constraints on the payment of future dividends.
There was no impact on the Net Assets of the Group.


Acquisitions

Work continues on a number of potential acquisitions. None were completed in the
period other than the purchase of the assets and business interests of B&T for
£346,000. At 30 November 2003 the B&T business was operating at an approximate
run rate of £600,000 p.a. with an operating profit of 12%. Further capital and
marketing expenditure will be required as the business develops.


Current Trading and Prospects

Traditional business opportunities remain rather weak and uncertain for C&H, our
precision polishing operation serving the UK and European turbine blade
industry. Alternative sales opportunities developed during the period under
review are helping the situation and it is hoped these will bring a return
toward normal levels of operation in the last quarter of the current financial
year.

JGWT is experiencing a pick up in orders from both its traditional customers and
from the new initiatives on miniature products developed in the first half of
the year. A further pick up in business enquiries during January and early
February 2004 is encouraging.

Trading at the Jena Rotary Technology Centre at Sherwood Park remains healthy
and continues to improve with enquiries and order intake currently above budget
and expectations. Much of the current demand is for maintenance and field
service on ballscrews supplied by JGWT however a significant uplift in enquiries
recorded during January and early February 2004 on our B&T and GMN spindle lines
is encouraging.

Our outlook for the full year continues to be cautious but positive. Much will
depend on the expected, and long overdue, uplift in the European and US
manufacturing economy.



K. M. Baker
Chairman
19 February 2004



Consolidated Profit and Loss Account

                                                          6 mths to        6 mths to       12 mths to 31
                                                        30 Nov 2003      30 Nov 2002            May 2003
                                                          Unaudited        Unaudited             Audited
                                                              £'000            £'000               £'000
                                                    Note
Turnover
Continuing operations                                        2,646             2,002              4,647


Operating profit before amortisation                         184               175                360
Amortisation of goodwill                                     (38)              (13)               (67)


Operating profit                                             146               162                293

Profit on ordinary activities before interest                146               162                293

Net interest payable and similar charges                     (21)              (3)                (2)

Profit on ordinary activities before taxation                125               159                291
Tax on profit on ordinary activities                 3       (15)              (50)               (63)

Retained profit for the period                               110               109                228


Earnings per share                                   4
Basic                                                        1.6p              1.6p               3.3p
Basic - before goodwill amortisation                         2.1p              1.8p               4.2p
Diluted                                                      1.6p              1.6p               3.3p
Diluted - before goodwill amortisation                       2.1p              1.8p               4.2p




Statement of Total Recognised Gains and Losses

                                                    6 mths to 30      6 mths to 30       12 mths to 31
                                                        Nov 2003          Nov 2002    May 2003 Audited
                                                       Unaudited         Unaudited
                                                           £'000             £'000             £'000

Profit for the financial period                              110               109               228
Other recognised gains and losses
Currency translation (loss)/gain                             (61)              (33)              111

Total recognised gains relating to the period                49                76                339



Summarised Consolidated Balance Sheet

                                                     At 30 Nov 2003     At 30 Nov 2002            At 31 May
                                                          Unaudited          Unaudited         2003 Audited             
                                                              £'000              £'000                £'000      
Fixed assets
Intangible assets                                            1,556              613                1,400
Tangible assets                                              1,868              1,914              1,522
Investments                                                  59                 -                  59

                                                             3,483              2,527              2,981


Current assets
Stocks                                                       1,676              1,430              1,430
Debtors due within one year                                  1,041              699                913
Cash at bank and in hand                                     475                1,204              1,083

                                                             3,192              3,333              3,426
Creditors: Amounts falling due within one year               (1,353)            (926)              (1,227)

Net current assets                                           1,839              2,407              2,199


Total assets less current liabilities                        5,322              4,934              5,180

Creditors: Amounts falling due after more than one year      (493)              (417)              (400)

Net assets                                                   4,829              4,517              4,780


Capital and reserves
Called up share capital                                      352                352                352
Share premium account                                        -                  3,611              3,611
Capital redemption reserve                                   813                813                813
Other reserves                                               180                180                180
Profit and loss account                                      3,484              (439)              (176)

Equity shareholders' funds                                   4,829              4,517              4,780



Consolidated Cash Flow Statement
                                                        6 mths to          6 mths to           12 mths to 
                                                           30 Nov             30 Nov               31 May               
                                                             2003               2002                 2003
                                                        Unaudited          Unaudited              Audited
                                                            £'000              £'000                £'000

Net cash inflow from operating activities                    19                 133                281

Returns on investment and servicing of finance
Net interest                                                 (16)               (3)                (2)

Net cash outflow from returns on investment and servicing of (16)               (3)                (2)
finance

Taxation                                                     32                 (158)              (135)

Capital expenditure and financial investment
Purchase of fixed assets                                     (154)              (73)               (98)
Sale of fixed assets                                         -                  15                 17
Purchase of fixed asset investments                          -                  -                  (59)
Net cash outflow from capital expenditure and financial      (154)              (58)               (140)
investment

Acquisitions and disposals
Purchase of business                                         (346)              -                  -
Purchase of subsidiary undertakings                          -                  (3,374)            (3,421)
Net cash acquired with subsidiaries                          -                  50                 50
Net cash outflow from acquisitions and disposals             (346)              (3,324)            (3,371)

Equity dividends                                             -                  -                  -

Financing
Issue of share capital                                       -                  400                400
Repayment of loan capital                                    -                  (8)                (16)
Capital element of finance lease payments                    (95)               (89)               (177)
Net cash (outflow)/inflow from financing                     (95)               303                207

Decrease in cash                                             (560)              (3,107)            (3,160)




Reconciliation of Operating Profit to Net Cash Flow from Operating Activities

                                                          6 mths to      6 mths to 30    12 mths to 31 
                                                        30 Nov 2003          Nov 2002         May 2003
                                                              £'000             £'000            £'000

Operating profit                                             146                 162             293
Amortisation of intangible assets and goodwill               38                  15              67
Depreciation of tangible fixed assets                        100                 130             199
Profit on disposal of tangible fixed assets                  -                   (2)             -
Increase in stocks                                           (156)               (79)            (101)
(Increase)/decrease in debtors                               (181)               166             (98)
Increase/(decrease) in creditors                             72                  (259)           (79)

Net cash inflow from operating activities                    19                  133             281


NOTES



1.   This interim report was neither audited nor reviewed by the auditors.
     It was approved by the Board on 19 February 2004.  It has been prepared 
     using accounting policies that are consistent with those adopted in the 
     statutory accounts for the year ended 31 May 2003.

     The figures for the year to 31 May 2003 were derived from the statutory 
     accounts for that year.  The statutory accounts for the year ended 31 May 
     2003 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 2004.

4.   Earnings per share has been calculated using the weighted average number 
     of 7,049,804 Ordinary Shares in issue during the period (2002: 6,930,579)
     (Audited 2003: 6,990,028).

5.   Capitalised goodwill amounting to £194,000 arising from the purchase of 
     B&T 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.   The Share Premium Account was cancelled and transferred to Profit and Loss 
     Reserves following the capital reconstruction approved by shareholders on
     17 July 2003 and approved by the High Court of Justice Chancery Division 
     on 20 August 2003.

7.         Analysis of Net Cash
                                                              Exchange              30 Nov
                      1 June 2003           Cashflow          movement                2003                              
                            £'000              £'000             £'000               £'000                      


Cash at bank and in hand   1,083             (603)               (5)               475
Bank overdraft             (227)             43                  6                 (178)

Cash                       856               (560)               1                 297



8.         Reconciliation of movements in Shareholders' Funds


                                                       6 mths to 30          6 mths to 30   12 mths to 
                                                           Nov 2003              Nov 2002  31 May 2003 
                                                          Unaudited             Unaudited      Audited
                                                              £'000                 £'000        £'000

Profit for the financial period                                 110                   109        228
Other recognised gains and losses relating to the
period
                                                               (61)                  (33)        111
Proceeds of share issue                                           -                   400        400

Increase in shareholders' funds                                  49                   476        739
Opening shareholders' funds                                   4,780                 4,041        4,041

Closing shareholders' funds                                   4,829                 4,517        4,780





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