Hayward Tyler Group PLC (LON: HAYT) said it is “poised for growth” as it has entered the 2018 financial year with a record order book, significant investments and a proposed merger with Avingtrans (LON:AVG).
The engineering services company’s order book stood at £49.8mln at 31 March, compared to £36.1mln last year, following a strong order intake in the second half of 2017.
Key order wins in 2017 were with Korea Hydro & Nuclear Power Co. in South Korea for nuclear replacement units and Eureka for submersible motors for offshore topside deployment. The group also secured a number of power contracts with customers in China and India, and "strategically important” contracts with new customers in its Peter Brotherhood business, a UK maker of steam turbines and gas compressors.
READ: Pumps and motors group Hayward Tyler sees second half recovery and strong pick-up in orders
Order intake rose to £68.3mln in 2017 from £36.1mln the previous year, helping to boost revenue to £62.7mln from £61.6mln
The group swung to a loss per share of 7.07p from earnings per share of 4.89p as the increase in revenue was not enough to offset higher costs and the impact of a weaker pound against the dollar following the Brexit vote.
READ: Hayward Tyler agrees merger with fellow AIM engineer Avingtrans
Hayward said its priorities for 2018 include reducing fixed costs and completing the proposed takeover by UK engineering firm Avingtrans.
The offer values Hayward at 51.6p per share and a premium of around 36% to the price when talks first got underway at the end of March.
“With a record order book as we enter fiscal year 2018 the board remains confident in the underlying profitability, our ability to take excess cost out of the group and the longer term prospects for the business,” said chairman John May.
“It is clear that these prospects are well understood and appreciated by the directors of Avingtrans plc who have now made an offer to acquire the entire share capital of the company.”