Company chairman don't often quote Aldous Huxley in their results statements but the point Avingtans' Roger McDowell was making about consistency was clear; Avingtrans produced predictably impressive growth in its aerospace division to comfortably offset the anticipated downturn at transport infrastructure unit Crown.
Sales of parts to the civil aerospace industry soared 30 per cent to £7.8m during the first half, driving divisional operating profit up 59 per cent to £804,000. And December's £3m deal with Rolls-Royce supplier Goodrich looks promising. Rolls wants to double its sales over the next decade, so the supply chain will need to grow too. Buying a Buckingham-based composites business also makes sense. It's only small, but should start contributing to earnings in 2013 and bigger deals in aerospace and energy are likely. Good job, too, as ongoing weakness at up-for-sale road signs and gantries business Crown and the slower than expected ramp up in an MRI scanners deal with Siemens kept the energy and medical business in the red. Still, industrial products unit Jena Tec grew sales by 22 per cent to £6m and operating profits by 13 per cent to £610,000. Near record output from its German plant and "robust" recovery in the US bode well.
After raising forecasts, broker finnCap now expects full-year adjusted pre-tax profit of £2.2m, giving adjusted EPS of 6.6p (from £1.6m and 5.6p in 2011).
AVINGTRANS (AVG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 63p | MARKET VALUE: | £16m | |
| TOUCH: | 61-65p | 12-MONTH HIGH: | 70p | Low: 48p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 92p* | NET DEBT: | 33% | |
| Half-year to 30 Nov | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 16.9 | 0.51 | 1.4 | nil |
| 2011 | 20.2 | 0.85 | 2.7 | nil |
| % change | +20 | +66 | +93 | – |
*Includes intangible assets of £12.4m, or 48p a share | ||||
