Avingtrans flags full-year profit in line with expectations

(Sharecast News) - Avingtrans said on Wednesday that full-year profit was set to be in line with market expectations after the engineering group secured new contract wins across its nuclear, infrastructure and data centre markets.

The AIM-traded company said its Advanced Engineering Systems division entered the new financial year with a strong order book, including a further $4m contract with South Korea's KHNP to supply spare parts for the Hanbit Nuclear Power Station.

In the US, Avingtrans secured its first order from BWX Technologies, worth $1.8m, for reactor components, which it said marked progress in accessing the regulated US nuclear defence market.

The group also won a �2m contract to supply high-security and fire protection doors for HS2 tunnel service shafts and headhouses, taking Booth's total HS2 contract awards to more than �50m.

Avingtrans said Ormandy was expected to ship its tenth data centre solution in the first quarter of the new financial year, with cumulative revenue from the sector reaching about �4m and the identified opportunity pipeline growing to around �40m.

In Medical & Industrial Imaging, the group said Adaptix Ortho350 received FDA 510(k) clearance in the US and CE certification for the UK and Europe, although divisional revenue was lower than planned due to the timing of regulatory approvals.

The company also said it expected to repay about $5.0m to the US government, including interest and penalties, after determining that its US subsidiaries did not qualify for second-draw Paycheck Protection Program loans received during the pandemic.

Repayment terms are expected to be spread over about 24 months.

Chief executive Steve McQuillan said the group had maintained positive momentum and that recent awards reinforced its position in global nuclear and infrastructure markets.

At 1057 BST, shares in Avingtrans were down 4.63% at 577p.

Reporting by Josh White for Sharecast.com.

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