Avingtrans full-year profits rise amid record revenues

(Sharecast News) - Critical components designer and manufacturer Avingtrans reported a rise in full-year profit and record revenue on Wednesday as it hailed a particularly solid peformance from the energy division. In the year to the end of May, adjusted profit from continuing operations ticked up to £8.6m from £7.3m a year earlier. Avingtrans said this reflected strong underlying growth in AES (Energy) results as well as lower restructuring costs.

Adjusted earnings before interest, tax, depreciation and amortisation from continuing operations were slightly ahead of previously upgraded market expectations at £16.7m, up from £14m a year earlier.

The AES segment saw a 20% increase in adjusted EBITDA to £21.5m, offset by a smaller than forecast investment in the MII division.

The company declared a final dividend of 3p per share, taking the total dividend to 4.9p, up from 4.7p.

Chairman Roger McDowell said: "We are very pleased to present investors with another enhanced set of results. In challenging global markets, Avingtrans has again performed robustly as a group and exceeded market expectations. During the year, we made good use of our resources, to continue with the Investment phase of our PIE strategy at Slack and Parr, Adaptix and Magnetica. This activity was, in turn, supported by a record set of results in the AES division.

"With several of our businesses now benefitting from positive global trends in AI, data centres and, relatedly, new nuclear power, we have a strong order book moving into FY26 and, therefore, we anticipate further organic growth as a group this year."

The shares closed down 3.3% at 474p.

Broker Cavendish said the results were "strong", lifting its target price to 575p from 495p.

"The company enters FY26 with the best order cover in five years, thanks to nuclear contracts in the UK, US and South Korea, and high speed rail contracts in the UK. We are increasing our FY26E adjusted EBITDA forecast by 2.5% reflecting higher profitability at AES, and raising our adjusted profit before tax forecast by 10%, which reflects the EBITDA increase together with continuation of lower interest costs," it said.

"We are introducing forecasts for FY27E, with 19.5% YoY growth in adjusted EBITDA and 22.5% growth in adjusted EPS, driven by large contracts already secured in AES together with progress towards commercial maturity in the Adaptix and Magnetica businesses in the Medical division."