International engineering group Avingtrans PLC (AIM:AVG) reported a strong interim period marked by top-line growth and an enhanced operational footprint.
Financially, Avingtrans reported a 30.4% year-on-year increase in revenue to £65.2 million for the six months ending 30 November 2023, primarily driven by the Advanced Engineering Systems (AES) division.
This division’s performance was thanks to strong order cover and strategic acquisitions that have expanded its market reach and capabilities.
Firm-wide EBITDA rose by 14.7% to £7.3 million, attributed to the increased revenue and operational efficiencies achieved during the period.
Adjusted profit before tax increased from £4 million in the first half of 2023 to £4.4 million in the last six months, with adjusted earnings per share increasing from 9.8p to 11.7p.
Interim dividends increased from 1.7p per share to 1.8p.
The period saw some strategic milestones for Avingtrans, including the acquisition of the assets of Slack and Parr in August 2023 for £4.1 million, which expanded Avingtrans' operational footprint.
Moreover, the AES division secured two new nuclear decommissioning contracts worth a combined £14.5 million, alongside notable defence contracts through HT Luton, and a $10 million contract from TerraPower for next-generation nuclear power station components.
Revenues in the Medical and Industrial Imaging (MII) division held steady at £1.5 million.
Commenting on the results, chairman Roger McDowell said: "Despite some continuing supply chain instability and inflationary pressures, our tried-and-tested Pinpoint-Invest-Exit (PIE) approach produced strong results during the period, as evidenced by increased revenue and stable gross margins, resulting in double-digit percentage growth in adjusted EBITDA…
“Our markets are always changing and Avingtrans continues to prioritise taking advantage of selected M&A opportunities, with the shrewd acquisitions of the assets of Slack and Parr and Adaptix in the first half, the latter greatly contributing to our exciting Medical division.
“We believe that the MII business will command a substantial valuation in due course. We remain optimistic about our prospects and the potential future opportunities across our markets.”