Avingtrans flags record full-year revenue

19th Jun 2024 10:14

(Sharecast News) - Energy, medical, and industrial components, modules, systems, and services provider Avingtrans reported record revenue from continuing operations for the financial year ended 31 May in an update on Wednesday.

The AIM-traded firm said adjusted EBITDA from continuing operations was significantly ahead of market expectations, set to be between £13m and £14m.

That performance was partly due to lower-than-budgeted commercialisation costs in the medical division, some of which were deferred to the 2025 financial year.

Net debt, excluding IFRS 16, stood at £6.1m - better than anticipated, and supported by the completion of key projects and improved cash receipts.

The advanced engineering systems (AES) division delivered robust results, maintaining momentum into the new financial year.

Ormandy achieved its best results since acquisition, reflecting successful integration and operational improvements.

Slack & Parr, acquired in August, also posted a positive EBIT in its first year, while Hayward Tyler recorded its best results since acquisition.

In the medical and industrial imaging (MII) division, significant progress was made with novel 3D x-ray products and helium-free MRI systems, receiving positive market feedback at recent trade shows.

Adaptix, acquired in September, had integrated successfully, equipping its Scottish facility to produce key system components for veterinary and orthopaedic products.

Initial sales of veterinary and non-destructive evaluation (NDE) products had started in the UK and the US, with an expected volume increase in the current financial year.

Magnetica had meanwhile transitioned to larger facilities in Brisbane and Houston, preparing for volume production of MRI systems starting in the new financial year.

Progress in finalising system development had been substantial, but increased cybersecurity scrutiny required by the FDA had delayed 510(k) approval to the first half of 2025, after which sales in the US would start immediately.

Both Magnetica and Adaptix had appointed initial distributor partners in the UK and the US, enhancing their market presence.

"We are very pleased with the group's performance reporting record revenue with Adjusted EBITDA ahead of market expectations," said chief executive officer Steve McQuillan.

"Lower commercialisation costs in the medical division, some of which have been delayed into the 2025 financial year, have contributed to this performance but we are pleased that the group is entering 2025 with record-level revenue from continuing operations, leading the board to view the outlook for this year with confidence."

Avingtrans said it would publish its audited results for the year ended 31 May on 25 September, providing a further performance update at that time.

At 1459 BST, shares in Avingtrans were up 0.78% at 388p.

Reporting by Josh White for Sharecast.com.