Investor commentary here on today's nuclear contract wins for AVG
www.linkedin.com/posts/paul-hill-a5994116_avg-nuclear-avg-activity-6919167096249544704-LS4M?utm_source=linkedin_share&utm_medium=member_desktop_web |
Nice run up in price in past two weeks |
Another contract win - but this time RNSNON in size |
https://masterinvestor.co.uk/equities/taking-a-bullish-small-cap-look-at-mpac-cau-nwor-and-idox/Avingtrans (LON:AVG) nuclear potentialAlthough the announcement of a couple of contract wins for two of its subsidiary interests did not alter current year estimates, this group saw its shares up 4% yesterday, closing at 427.5p.Analyst David Buxton, at brokers finnCap, currently has a price objective of 495p on its shares.He noted that the shares have been solid performers in current weak markets, highlighting the group's defensive qualities, as well as its nuclear engineering interests.The current year, to end May, could see £101.3m of revenues and £7.9m adjusted pre-tax profits, worth 22.6p per share in earnings and a miniscule 4.2p dividend per share.For the coming year he estimates £110m of revenues, £9.6m profits, 25.3p earnings and a 4.4p dividend.Hold on for Buxton's price aim being scored. |
Impressive from a technical pov as well. |
Contract wins announced, bodes well |
Great update interview here with CEO Steve McQuillan & CFO Stephen King of Avingtrans.
www.linkedin.com/posts/paul-hill-a5994116_qa-with-avingtrans-ceo-steve-mcquillan-activity-6902170324075708416-41RH |
Solid results this am |
All systems go at specialist engineer Avingtrans.
Find out all the news, commentary & latest valuation here.
www.linkedin.com/posts/paul-hill-a5994116_avg-sellafield-avg-activity-6902149219105542144-Ispd |
Responded well this am |
 MIDAS SHARE TIPS: Alert! Nuclear waste can make you richer thanks to Avingtrans, the well-run business with a track record of success
By Joanne Hart, Financial Mail on Sunday
Published: 21:50 GMT, 19 February 2022 | Updated: 21:50 GMT, 19 February 2022
Sellafield was once prized as the world's first commercial nuclear power station, providing the UK with electricity from the 1950s until 2003.
Recently, however, it has largely been viewed as a problem. The size of a small town, this remote spot in Cumbria holds thousands of tons of nuclear waste, which needs to be packaged and securely stored as part of a decades-long decommissioning process.
Metalcraft will play a key part in that project. Owned by AIM-listed Avingtrans, Metalcraft makes ultra-strong, three metre cubed steel boxes, to house waste from the Sellafield silos. The firm has already been awarded a contract of up to £70million to supply about 1,000 units over the next six years. But more contracts are likely, as Sellafield will need some 70,000 containers over the next three decades and few firms have the technical ability to make them.
Boxing clever: Avingtrans has a contract to contain waste for the Sellafield nuclear reprocessing plant in Cumbria
Avingtrans finds troubled engineering firms, buys them at a cut-price rate, turns them round and sells them at a profit.
The shares are £4 each and should increase in value as Avingtrans management is highly experienced and has delivered more than a decade of robust returns and dividend growth.
Some businesses are kept for years. Some are sold relatively quickly. Many are bundled together to create a whole that is more than the sum of its parts.
Metalcraft, for instance, originally focused on the medical and scientific markets but merged with another firm in 2013 and has since become one of the leading providers of nuclear waste containers.
Avingtrans has many other businesses in its stable. Booth Industries makes exceptionally durable doors for use in high-pressure environments, including HS2 tunnels, where doors will need to stay firm as trains rattle past at 225mph.
Bolton-based Booth was on the brink of collapse when Avingtrans acquired the firm for £1.8million in 2019. Today, Booth is profitable and will probably be sold for a significant sum in the next year or so.
Avingtrans also rescued Hayward Tyler, an AIM business that fell into difficulties. Acquired in 2017, the firm is now in rude health, supplying pumps and motors for use in tough environments, such as offshore oil rigs, solar power plants and chemical processing sites.
Avingtrans chief executive Steve McQuillan, an engineer by background, has been at the helm since 2008. Finance director Stephen King, another qualified engineer, has worked at the firm for even longer, joining in 2002.
Over the years, the two have bought and sold dozens of businesses, always centred on complex engineering products that are hard to replicate and are in demand year in, year out.
Many of these firms work in the energy and power sectors but there is a medical devices arm too.
Magnetica, acquired last year, is developing mini-magnetic resonance imaging (MRI) machines that are cheaper and faster than traditional large-scale kit.
The mini-versions are due to be launched next year but Avingtrans is already seeing demand from orthopaedic surgeons and even from vets, who would use the kit to scan ailing pets.
Interim results, out this week, are expected to show that Avingtrans is making good progress.
That should feed through into robust annual figures with brokers predicting turnover of £101million for the year to May 31, 2022, alongside profits of £7.8million and a 4.2p dividend.
Next year's numbers are likely to be materially stronger, with turnover of £110million, profits of £9million and a 4.4p dividend. There is always the possibility of special dividends too, when certain businesses are sold.
Many companies are worried about rising inflation, but McQuillan and King are quietly confident. The group operates in countries around the world, it can pass on many of the price rises that it incurs and contracts are often inflation-linked.
A tougher environment is also likely to throw up opportunities to purchase businesses in distress, though the group is highly selective, seeing about 100 companies a year but only buying one or two.
Avingtrans is lean at the centre, with no fancy headquarters or management minions, but it takes responsibilities to staff seriously, with an apprentice academy and training school for young British engineers. This helps create more skilled UK workers but also makes Avingtrans less vulnerable to staff shortages and employee turnover.
Midas verdict: Avingtrans is a well-run business with a track record of success. At £4, the shares are a buy.
Traded on: AIM Ticker: AVG Contact: avingtrans.plc.uk or 01354 692 391 |
...from a while ago...
Avingtrans is involved in manufacturing and selling engineered systems and services to the energy industry to support the rising global demand for safe, reliable, and sustainable energy production. Subsequently, the firm provides solutions for innovative medical measurement equipment across the globe. The large influx of initiatives is financially supported by a robust balance sheet, where total equity rallied from £69,908m to £98,963m in 2021. Furthermore, operating profit substantially surged from £604m to £6,085m in 2021, hence yielding optimal returns on investment for market participants. From a relative valuation perspective, Avingtrans is rapidly growing and thereby outperforming its peers from the machinery industry, illustrated by the firm’s EV/EBITDA ratio of 10.5x, which is higher than the machinery industry threshold of 8.5x. Furthermore, Avingtrans generated a net cashflow of £23.3m in 2021, substantially above the £7.4m derived in 2020, thus enabling the P/FCF ratio to reach the 34.2x and beating the industry benchmark of 28.9x. Therefore, the firm was able to finance its operating and investing activities effectively while enhancing profits....from WealthOralceAM |
Just read Singer's new note on AVG where they have a buy and a 510tp.
They see this year's BBT going up £100k to £7.8 and the free cash flow yield this current year going from 3.1% to minus 0.4% |
AVG (starts 07:10) discussed by Paul Hill & Justin Waite of Vox markets here
www.youtube.com/watch?v=gA_6tDwJA5k |
Encouraging trading update from specialist engineer Avingtrans today.
All the news & commentary here
www.linkedin.com/posts/paul-hill-a5994116_avg-avg-sellafield-activity-6889828619879763968-YdGo |
Christopher Mills talks positively about Avingtrans (23:30) here.
www.linkedin.com/feed/update/urn:li:activity:6879354290515841026/
www.youtube.com/watch?v=cG7_82WZdmc&t=2135s |
Christopher Mills talks positively about Avingtrans (23:30) here.
www.linkedin.com/feed/update/urn:li:activity:6879354290515841026/
www.youtube.com/watch?v=cG7_82WZdmc&t=2135s |
Avingtrans is involved in manufacturing and selling engineered systems and services to the energy industry to support the rising global demand for safe, reliable, and sustainable energy production. Subsequently, the firm provides solutions for innovative medical measurement equipment across the globe. The large influx of initiatives is financially supported by a robust balance sheet, where total equity rallied from £69,908m to £98,963m in 2021. Furthermore, operating profit substantially surged from £604m to £6,085m in 2021, hence yielding optimal returns on investment for market participants. From a relative valuation perspective, Avingtrans is rapidly growing and thereby outperforming its peers from the machinery industry, illustrated by the firm’s EV/EBITDA ratio of 10.5x, which is higher than the machinery industry threshold of 8.5x. Furthermore, Avingtrans generated a net cashflow of £23.3m in 2021, substantially above the £7.4m derived in 2020, thus enabling the P/FCF ratio to reach the 34.2x and beating the industry benchmark of 28.9x. Therefore, the firm was able to finance its operating and investing activities effectively while enhancing profits.
Keep up to date with WealthOracle AM |
Any thoughts as to why the share price has fallen so much? |
Thank you all, it is my pleasure to give the heads up to fellow shareholders. In the years I have attended when things have progressed year on year I have always finished by proposing a vote of thanks to the Board which has always been greatly acknowledged. Shareholders quite rightly are quick to criticise Boards, in some cases quite rightly but in this case I have never had reason to question any action the management have taken.
Cisk - how can you say somewhere has a better climate than Malta the jewel of the Med, especially when your name is that of the indigenous lager of the country!!!!! :-) |
Another thumbs up from me. So good to hear words from management decoded by a shareholder |
Only Voting up DGW seems inadequate so Thank you from me too. |
Nah a long way away from there and better climate! and decent beer (although wasn't always the case...)
It sounds like the Board were quite upbeat - is that the impression you got? |
Hi Cisk - nice to hear from you once again, as I suggested in the past not living in Malta are you by any chance? |
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