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Avingtrans secures several notable contracts over first half of trading
Energy and medical sector component manufacturer Avingtrans announced on Monday that its full-year results would likely be in line with market expectations after a strong performance in the first half.
For the six months leading to 30 November, Avingtrans' key financial performance indicators of revenue, gross margin and EBITDA all tracked ahead of its expectations.
Generally improving market conditions led to a number of notable new contracts being secured throughout the period.
Avingtrans locked in nuclear life extension contracts worth £2.2m in Sweden and £2.5m in South Korea, a £1m steam turbine refurbishment, an initial £500,000 UK gas distribution network upgrade contract and a £500,000 M6 smart motorway contract, making up a total of £7m-worth of new business.
The group reaffirmed its principal focus of re-establishing profitability after the integration of the Hayward Tyler Group to the Avingtrans family, noting that restructuring undertaken immediately after the acquisition had been successful at realising cost savings, as it made moves to pay off HTG's historic borrowings and extend banking facilities for the business.
Steve McQuillan, chief executive officer of Avingtrans, said, "We are pleased with how the Avingtrans business has performed in the period across both the Energy and Medical sectors."
"Our focus has been integrating the Hayward Tyler businesses into Avingtrans' existing business and we are happy with how this phase of development has progressed. As we outlined in September, we continue to be excited by the market synergies and potential that Hayward Tyler group offers Avingtrans, both in terms of enhancing the existing business and adding additional scale to future opportunities," he added.
As of 1700 GMT, shares had grown 8.77% to 211.55p.