Just weeks after selling its industrial division for £13.5m, Avingtrans (AVG) has spent almost £4m beefing up its aerospace business, and a new £80m deal with long-term customer Rolls-Royce has rounded off a busy month for the precision engineer.
IC TIP:
Buy
at
103p
Supplying Rolls with rigid pipe assemblies and other parts for at least the next 10 years is a massive boost for management and its strategy. With the low margin, highly cyclical ballscrews and spindles unit gone, Avingtrans now makes most of its money from the fast-growing aerospace industry where the order book extends for years and margins are far better.
