PINPOINT-INVEST-EXIT
2022 Annual Report
About
Avingtrans plc has a proven strategy of "buy and build" in highly regulated engineering markets, a strategy it has named "Pinpoint-Invest-Exit". Significant shareholder value is delivered through a clear strategy, a strong balance sheet and an agile and experienced management team.
www.avingtrans.plc.uk
About us
Delivering shareholder value through a proven strategy of Pinpoint-Invest-Exit in highly regulated global engineering markets
The Group has a proven track record in delivering shareholder value through PIE:
- Identifying and executing prudent deals with precision and speed
- Building strong brands and value from constituent parts
- Crystallising these gains with periodic sales of businesses at advantageous valuations
- Returning the proceeds to shareholders
2012 | 17 | ||||
Sold JenaTec; Purchased Aerotech & PFW | 2013 | 32 | |||
Purchased Maloney | 2014 | 45 | |||
Purchased RMDG | 2015 | 31 |
Purchased Rolls Royce pipes; Sold Sigma | 2016 |
Returned £19.4m to shareholders; | 2017 |
Purchased Scimag | |
Purchased HTG & Ormandy | 2018 |
Purchased Tecmag | 2019 |
Purchased Booth and Energy Steel | 2020 |
Purchased Magnetica, sold Peter Brotherhood | 2021 |
Purchased Transkem, invested in Adaptix | 2022 |
50
4319
67
71
77
137
138
0 | 30 | 60 | 90 | 120 | 150 | ||||||
Market Cap £m | Tender Offer £m | ||||||||||
Timeline
2012 (98p) | 2016 (180p) | 2017 (235p) | 2019 (217p) | 2021 (335p) |
Precision instruments | The Aerospace Division, | Acquisition of the Hayward | Acquisition of Booth | Peter Brotherhood sold for an |
business, JenaTec, | Sigma Components, | Tyler Group for £29.4m and | Industries for cash | enterprise value of £35.0m, |
sold for £13.5m | sold for £65m | creation of Energy and | consideration of £1.8m | and acquisition of Magnetica |
Medical Divisions |
Energy Division
Performance critical solutions for energy systems
Engineered Pumps and Motors (EPM) Division
The EPM division is built on one brand, Hayward Tyler. Established in 1815, Hayward Tyler designs, manufactures and services performance-critical electric motors and pumps to meet the most demanding of applications for the global energy industry, as both an OEM supplier and a trusted through life support partner.
Process Solutions and Rotating Equipment (PSRE) Division
The PSRE division comprises a number of established brands with expertise across the global energy market. The brands specialise in the design, manufacture, integration and servicing of an extensive product and service offering including bespoke high-integrity doors, containers and skidded systems.
Medical Division
Innovative solutions for medical systems and research
Medical (MII)
The medical division has special expertise in the design and manufacture of innovative equipment for the medical, science and research communities. Including cutting-edge products for medical diagnostic equipment; high performance pressure, vacuum vessels and composite materials for research organisations; superconducting magnets and helium-free cryogenic systems.
Commenting" on the results, Roger McDowell, Chairman, said:
"Once again, the pugnacity of the Group was tested and I'm pleased to report that we stoically fought our way through, despite multiple counterpunches and headwinds. With a strong balance sheet, we moved to invest in capex and new technologies in our existing businesses; bought bolt-on business, Transkem, for Fluid Handling; invested in 3D X-ray pioneer Adaptix; as well as continuing to invest in Magnetica - all with an eye on amplifying our impact in potentially disruptive nuclear and medical imaging markets. The commotions may continue, but we remain agile and steady on our feet - a great tribute to our management teams and
all of our employees."
Financial highlights
- Revenue from continuing operations increased by 1.9% to £100.4m (2021: £98.5m)
-
Gross Margin improved by 360 basis points to 34.0%
(2021: 30.4%) - Adjusted1 EBITDA from continuing operations increased slightly to £12.7m (2021: £12.5m)
- Adjusted1 PBT from continuing operations increased to £8.2m (2021: £7.7m)
- Adjusted1 Diluted earnings per share from continuing operations reduced slightly to 21.8p (2021: 22.4p) due to increased tax charge
- Net Cash (excluding IFRS 16) of £16.7m (31 May 2021: £23.3m) following investment in business
-
Final Dividend 2.6p per share (2021: 4.0p) resulting in a total
dividend for the year of 4.2p (2021: 4.0p)
Operational highlights - Energy
- Revenue increased 5.7% to £97.9m (2021: £92.7m)
- Metalcraft contract progressed to next phase to supply the Sellafield 3M3 boxes - contract value up by £20m to £70m
- Booth continues to recover strongly and has completed its factory extension for the HS2 contract
- Hayward Tyler and Energy Steel win multiple nuclear bids, including next generation enabling contracts
- Apprentice training school at Chatteris completed and handed over to operator, West Suffolk College
- Energy Steel restructured and moved to new, smaller facility in Michigan
- Acquired Transkem for £0.6m (net of cash) plus deferred consideration £0.4m. Concluded the successful integration into Fluid Handling in East Kilbride
Operational highlights - Medical
- Revenue decreased to £2.5m (2021: £5.8m) following pivot away from 3rd party component manufacture
-
Compact helium-free MRI system making good progress
- expected to launch in Q4 calendar 2023 - Complementary £4.0m (11.9%) stake purchased in emerging
3D X-ray leader, Adaptix, in Oxford, UK - Adaptix has launched its veterinary product and submitted its
510(K) to the FDA in USA for orthopaedics - Potentially significant market opportunities in the target imaging markets for both businesses
- Adjusted to add back amortisation of intangibles from business combinations, acquisition costs and exceptional items
Company Information
For the year ended 31 May 2022 | ||
Company registration number: | 01968354 | |
Registered office: | Chatteris Business Park | |
Chatteris | ||
Cambridgeshire | ||
PE16 6SA | ||
Directors: | R S McDowell (Non-executive Chairman) | |
S McQuillan (Chief Executive Officer) | ||
S M King (Chief Financial Officer) | ||
L J Thomas (Non-executive Director) | ||
J S Clarke (Non-executive Director) | ||
J S Reedman (Non-executive Director) appointed 1 March 2022 | ||
Website: | www.avingtrans.plc.uk | |
Secretary: | S M King | |
Bankers: | HSBC Bank plc | Royal Bank of Scotland |
PO Box 68 | 2 St Philips Place | |
130 New Street | Birmingham | |
Birmingham | B3 2RB | |
B2 4JU | ||
Registrars: | Link Group | |
10th Floor | ||
Central Square | ||
29 Wellington Street | ||
Leeds | ||
LS1 4DL | ||
Nominated advisor and broker: | Singer Capital Markets Advisory LLP | |
1 Bartholomew Lane | ||
London | ||
EC2N 2AX | ||
Solicitors: | Shakespeare Martineau LLP | |
No1 Colmore Square | ||
Birmingham | ||
B4 6AA | ||
Independent Auditor: | Cooper Parry Group Limited | |
Chartered Accountant & Statutory Auditor | ||
Sky View | ||
Argosy Road | ||
East Midlands Airport | ||
Castle Donington | ||
Derby | ||
DE74 2SA |
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Disclaimer
Avingtrans plc published this content on 10 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 October 2022 14:22:01 UTC.