"Not a vintage year," was how Avingtrans chairman Roger McDowell described 2011. Still, the precision engineer more than doubled full-year operating profit to £1.7m and brought back the final dividend. A 15 per cent reduction in net debt to £6.6m and lower gearing also catch the eye.
There was growth across the board. A maiden annual profit from Sigma China and contracts with Rolls-Royce for C&H pushed aerospace revenues up 32 per cent to £12.7m. Clients Boeing and Airbus are inundated with orders, driving civil aerospace turnover up 19 per cent.
Recovery in Energy and Medical has been "more sluggish", held back by the loss-making Crown business and contract delays in nuclear decommissioning. Still, the division's Metalcraft business grew revenue by 19 per cent in the second half, helping the division to an operating profit of £0.2m, and volume production of Siemens MRI scanner should finally begin in 2012.
However, a 56 per cent increase in sales to £10.6m at industrial products unit Jena Tec will be tough to match this year amid signs that growth is slowing.
Contract delays forced broker finnCap to trim 2012 adjusted pre-tax profit estimates by 6 per cent to £2.1m and adjusted EPS by 1 per cent to 6p (from £1.6m and 5.5p in 2011).
AVINGTRANS (AVG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 57p | MARKET VALUE: | £14.4m | |
| TOUCH: | 54-59p | 12-MONTH HIGH: | 70p | LOW: 39p |
| DIVIDEND YIELD: | 0.7% | PE RATIO: | 12 | |
| NET ASSET VALUE | 90p | NET DEBT: | 29% | |
| Year to 31 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 40.0 | 0.23 | 0.9 | 1.25 |
| 2008 | 41.2 | 1.69 | 6.5 | 1.25 |
| 2009 | 37.6 | 1.83 | 5.1 | nil |
| 2010 | 28.6 | 0.47 | 2.4 | nil |
| 2011 | 36.3 | 1.42 | 4.9 | 0.40 |
| % change | +27 | +203 | +104 | - |
Ex-div: 17 Oct Payment: 9 Dec * Includes intangible assets of £12.2m, or 48p a share | ||||
