No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Avingtrans said in an update on Wednesday that its full-year revenue, adjusted EBITDA and adjusted pre-tax profit were in line with recently upgraded market expectations, driven by strong performance in its Advanced Engineering Systems (AES) division.
The AIM-traded company, which designs and manufactures critical components for the energy, medical and industrial sectors, reported net debt of 12.3m at 31 May, better than anticipated due to reduced working capital and lower commercialisation costs in its Medical and Industrial Imaging (MII) division.
It said the AES division delivered record results at Hayward Tyler and Ormandy, with robust contributions from Metalcraft and Booth, and continued recovery at Slack & Parr.
The division also secured a 3.5m Ministry of Defence contract for HT Luton in May, reflecting growing demand from defence markets.
In the MII division, Avingtrans said progress continued in line with internal timelines.
Adaptix was finalising distributor agreements ahead of its planned launch into the orthopaedic market, while Magnetica was advancing toward securing 510(k) approval for its MRI system from the US Food and Drug Administration, with technical documentation and validation progressing as expected.
The group noted that newly implemented tariffs would have a limited direct impact on the AES division due to regional supply chains and local manufacturing.
Exposure in MII was also limited, with mitigation options under consideration, including increasing US-based manufacturing.
"We are pleased with the group's continued progress, delivering strong financial performance and operational execution in line with recently upgraded expectations," said chief executive officer chief executive Steve McQuillan.
"The AES division enters the new financial year in a strong position, supported by substantial multi-year order cover, including over 60m remaining on the Sellafield contract and over 30m on HS2.
"The group enters FY26 with a solid platform for growth, underpinned by expanding commercial traction and ongoing regulatory milestones."
As a result, McQuillan said the board viewed the outlook for the year ahead with confidence.
Avingtrans said it would report full-year results on 24 September.
At 1149 BST, shares in Avingtrans were down 0.76% at 416.8p.
Reporting by Josh White for Sharecast.com.