when is the dividend to be paid - couldn't see it |
In this fascinating interview, CEO Steve McQuillan & CFO Stephen King of Avingtrans take me through today’s in line H1’24 results and positive outlook. |
Another encouraging & 'in line' set of numbers and guidance from niche engineer Avingtrans today.
All the details & commentary here |
 allstar_07 this was raised on stocko last week. A poster called Jonno replied as follows.
"The reason for the sharp decline in EPS at Avingtrans (LON:AVG) relates to the investment required to scale its medical division (Adaptix and Magnetica) .
According to house broker Cavendish the nascent medical division has net assets of £9.5mn but will record an operating loss of £6.9mn for the year to 31 May 2024 and a further loss £6.4mn the following year. These losses will be covered by forecast annual operating profit £12mn and £13.3mn, respectively, from the group’s energy division.
As a result of this investment Avingtrans (LON:AVG) pre-tax profit is estimated to decline from £9mn to £2.3mn in the new financial year. However assuming Avingtrans (LON:AVG) is successful in commercialising its portable X-ray scanner (adaptix) and portable helium free MRI device (Magnetica) the capital return will be substantial.
The management at Avingtrans (LON:AVG) have proven themselves to be adept and astute and I am happy to remain invested." |
Hi, do you know why the drop from 24p to 2p? Because of the increased losses or other reasons? Seems extreme. |
I have been catching up on these given the recent price drop to see if I should buy more but will keep my hands in my pockets.
That said, uncomfortable being out of these as say the sale of Booth would give them a comfortable rerating although we will need to show continued patience ref monetizing the HT Luton site.
I agree that a good deal of potential in Medical but even with the current shareprice drop,basic eps of last year's continuing and discontining earnings is approx 23x. Of course with both Cavendish and Singer forecasting an adjusted eps of 2.8p for this current FY the PE even at current prices becomes extreme.
I note Cavendish have a TP at 495p and for Singer it is 510p. I am comfortable we will get to these prices in 2025.
I also note the issue of high receivables, the 1.2 PC approx dividend yield and no share buybacks in the offing and their lack of interest in shareholders like me. . |
Those forecasts are ballpark as the company now owns Adaptix and a larger slice of Magnetica which will both be loss making this year as AVG invests towards commercialisation of their 3d x-ray and MRI products.
I accept the UK market is probably not mature enough to look beyond the PE ratio but it really isn't the best way to value companies like AVG. |
Does anyone have reliable forecasts for this year and next? Stocko has c2p down from 24p a few months ago! |
I changed the https to hTTps |
this is what I see |
@ brummy_git.... All your posts end with "all the details here". Where is "here" exactly? On my device at least the word "here" isn't a link ?! |
I agree but I found the reasons for undertaking the amalgamation a little bit perplexing. |
yes, use of word "mature" seems to indicate that. |
Looks like first stage of a disposal being lined up. |
More positive news from specialist engineering & medical devices firm Avingtrans today.
All the details here. |
Magnetica distributor signed up for North America. Product well received at exhibition. Fantastic news. The this part of the business currently valued at nill point by this pathetic market. |
Options @£3.9 not exercisable for 3 years from grant date. This looks a fair deal, not like some companies that just take the mick and want shares for nothing. This sets a good precedent that Other Aim companies would do well to take notice of |
Default AGM trading update |
Further positive contract news from specialist engineer Avingtrans, who today signed a $10m 3-4 year deal with TerraPower for state of the art pumps.
All the details here. |
I don't think there's any need for a placing unless they acquire another business. They may even sell something over the next 12-18 months. |
Earwacks,
I presume you meant HS2 cancellation? Whilst it's correct to say all Booths current HS2 orderbook is for the 1st phase of the contract the extension of the line would have in all likelyhood provided further orders to Booths. This would have provided better visibility into the future and enhanced the value of the business on sale (which I thought was perhaps the most likely next business to be sold). |
The problem AVG may encounter regards valuation is that on the surface the financial forecasts have gone backwards because of the increased investment required in Magnetica and Adaptix. So to anyone valuing the business on a PE basis (incorrect way in my view) it looks much more expensive than previously. (adj eps reduced from 21.9p to 2.8p).
I'd suggest it's more sensible to value on a sum of parts valuation of the subsidiaries. |
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