Avingtrans Share Discussion Threads

[rogerrail] 15/3/2016 17:40

yes, so it is !doh!

[nw1234] 15/3/2016 08:28

Roger, I think the Maloney order referred to in post 2184 is the same order as in post 2141? (i.e. recent, but not new). NW

[dgwinterbottom] 15/3/2016 08:11

Thanks for that Roger, they certainly appear to be gaining ground with sizeable orders!!

[rogerrail] 14/3/2016 09:14

another significant ( but not considered significant enough to constitute an rns) order for energy&medical division:



also some more news on the divisions foray into the potentially lucrative proton beam therapy market ( page 14):

[jopper74] 11/3/2016 15:40

Looks like the city likes the new contract wins......nice to see some recovery and glad I didn't sell out at a loss. Just goes to show patience and faith in a good solid company pays off.

[bookbroker] 07/3/2016 10:39

The reason this is starting to appear a good investment is the clarity and the quality of these contracts, particularly the one for BNFL., it looks like a long term contract and with consistency, providing AVG deliver as planned the visibility looks assured!

[dgwinterbottom] 07/3/2016 10:27

Given the manufacture by Metalcraft of 3M3 boxes for Sellafield, will shortly come on stream things could really start to move!! A nice 10% rise on the share price :-)

[puffintickler] 07/3/2016 08:43

I was expecting an order but 75M is well over a year's turnover for AVG so it is very significant indeed and underpins that part of the business for 10 years.

This had appeared a bit of a dog if you just looked at the falling share price I had bought back in at 165p so when it touched 100p there was quite a loss. However I thought it would recover so recently doubled my holding at 120p so am now at break-even.

In fact things look better now than before so I will be holding for a while yet.

[jopper74] 07/3/2016 08:22

Great news......happy I stuck with this one.....still sat on a loss but its getting smaller now :-)

[dgwinterbottom] 23/2/2016 07:55

Roger - Indeed and while he is busy with the RR purchase going through at the moment!!

[rogerrail] 22/2/2016 09:04

thanks DG

good to see you are getting a prompt and considered response to your e-mails.

[dgwinterbottom] 21/2/2016 11:11

I had some questions following the Interims so emailed the CEO Steve McQuillan who responded by return:

Concerning your other points:

· Swadlincote move

o We couldn’t discuss this at the AGM, as we were in consultation with the employees, to decide what the final outcome should be at a personal level.

o Hinckley capacity – we have made room for the Derby/Swad business by moving more machining to China and (as noted in the report) chopping off some less profitable business from those sites, rather than moving it. Aerospace parts cost money to move and re-qualify, so no point moving them if you are not making enough return. As you can see, the changes have results in a good margin improvement in Aerospace.

· FET – yes – we should expand the explanation – this web link gives you information about our partner on this activity: hxxp://www.fetgroup.co.uk/

· Trent XWB – all metallic pipes at present. Composite pipe retrofit is possible, but OEMs will only do this on large volume engines or new engine types, as the qualification process is protracted and expensive

o We’re still a couple of years away from any volumes of composite pipes, however – lots of lifetime testing still to come.

AsI say his response was by return so hope this is useful!!

[briangeeee] 18/2/2016 22:22

The current year's H1 summary Admin Expenses included distribution costs while prior years didn't. The profit figures were fully correct. Well spotted by Paul, but a pretty minor and inconsequential error in reality.

[hastings] 18/2/2016 21:25

Sloppy figures aside, I am perhaps a little more positive.
Anyway, added some thoughts if of interest.

[rogerrail] 18/2/2016 20:13

I should qualify "minor"in that there is no material effect on profit.

[rogerrail] 18/2/2016 20:04

Paul Scott provides a balanced view to yesterdays results here, worth a read:hTTp://www.stockopedia.com/content/small-cap-value-report-18-feb-2016-avg-nmd-121799/Clearly very sharp on the figures, Paul spotted a sloppy error albeit minor in the results as reported.

[rogerrail] 18/2/2016 09:47

DG,

As you say there may well be a different communication stance linked to the change in broker who probably does not appreciate the commercial significance of some minor orders or developments which go beyond their £ value, but that does not stop the company reporting such news in a timely manner on their main company website ( not just the subsidiary website). I think Crown is a typical case where others share my view that perhaps it does not fit well into the current business model. Hence anything that improves the sales value of the business is useful to know , particularity as AVG will most likely need capital to support their rapidly growing aerospace business.

Having googled it there is a firm in Portishead nr Crown International Called FET Group ( Future Environmental Technologies )so it's clear where the link is.
Looks like a promising diversification into Carbon sequestration. Then again previous initiatives in solar and shipping failed to take off.

[dgwinterbottom] 18/2/2016 07:07

I have to say the announcement yesterday caught me by surprise as, going off last year my expectations were for the report to appear next week!

One can only say a significant turnaround from this time last year that fully vindicates the actions taken at the time by the Board, and proving that the decisions made at the time were spot on. Given the fact I was at the AGM just two months ago there were indeed a couple of issues that like you Roger I was very surprised that the decision was taken to vacate Swadlincote so soon after the transfer of Derby, not least that they were able to shoe horn everything into Hinckley?

I too was somewhat puzzled by the term FET as this also was news to me, and to this end will email Steve McQullian this evening re these points and try to get some further detail.

Roger, I fully understand your frustration at the lack of communication and a feeling this is a "deteriorating path" but would ask is this co-incidental with the change of broker? and would emphasise my earlier posting from the AGM. The broker is very picky and will not allow any RNS unless it will reveal significant orders that will have a major financial beneficial effect. Please be assured from myself having met the Board on many occasions they are themselves good communicators but to quote the phrase " merely acting under the instructions of Dr Goebbels." Will revert on the issues raised asap!

[bookbroker] 17/2/2016 14:28

Ought to be scope for a re-ratingon this co., providing it continues to deliver on its objectives, but judging by the vibes this could start soon!

[rogerrail] 17/2/2016 14:21

Absolutely, slightly ahead of when I anticipated, a true cash cow which should underpin the business for many years to come. Additionally there are further genuine prospects for significant work on new nuclear power stations when they eventually get going..

[bookbroker] 17/2/2016 14:04

Nice thing it would appear with this co. is the deal with BNFL for the containers, should be a consistent revenue stream!

[rogerrail] 17/2/2016 12:59

My overall impression after reading the interim report is that as I expected the show is well and truly back on the road after a transient stalling in growth in aerospace revenue, and the impact of the oil price slump, prospects from now on look bright. As a LTH I am of course looking at the glass half full but with optimism that it will be filled to the brim in the second half. We have been teased to some extent by the statement that “….we anticipate that divisional ( aerospace) sales will increase to over £50m organically, presenting a powerhouse investment opportunity for shareholders” but with no indication as to whether the current 11% margin will be achieved on the enlarged business following the acquisition of the Rolls Royce assets ( Edit: 2017 forecast is for adjusted pre-tax profit of £6.0m adjusted EBITDA of £9.4m and earnings of 17.7p which are in the right ballpark for this level of margin, thanks to Investorschampion link above for this info ) . In this respect I do have some faith in the management as they have demonstrated through the integration of the PFW Farnborough and RMDG Swadlincote sites in particular ( although a tad aggrieved that nothing has been reported regarding the merging of Swadlincote with Hinckley , I assume this means the closure of the Swadlincote site?).

Also some other "new to me" items which add to the impression that the communication to us PI’s is on a deteriorating path:
1. What is FET Environmental Technology? it has been mentioned almost as a passing comment as if it is common knowledge to all investors.
2. The previously unreported reorganisation of the composites business which perhaps points to the destination of the work from the Rapiscan order, if so this should have been detailed in the recent RNS?

[rogerrail] 15/2/2016 14:51

Nice work ,but not clear which part of the division has won the order with Rapiscan, as the RNS goes onto say:

Additionally, Avingtrans is also pleased to announce that Stainless Metalcraft, also part of the Group's Energy and Medical division has signed a framework agreement with Bruker BioSpin AG ("Bruker").

I would have thought the Rapiscan order is also destined for Stainless Metalcraft Chengdu?

[dgwinterbottom] 15/2/2016 07:40

No doubt this should put Energy & Medical well on the road to profitability!