Avingtrans Share Discussion Threads

[rhomboid] 15/2/2017 14:13

Thanks for the heads up, I wonder if the delay is related to any acquisition they're undertaking? I'm intrigued by what their next move will be.

[dgwinterbottom] 15/2/2017 14:07

Having expected the Interim Results being announced today I contacted the CFO and was advised Interims will be announced on 28th February.

[dgwinterbottom] 08/2/2017 08:29

Profit takers moving in today!!

[briangeeee] 06/2/2017 14:58

Thanks for the info. No clear info on price, but prior to any costs incurred, it looks (from the administrator's report) likely that they've bought the assets for somewhere in the £100-200k range. Clearly there will be some additional subsequent restructuring costs. It's a very trivial purchase in terms of the total cash they need to deploy.

[cockerhoop] 06/2/2017 12:38

Actually Whiteley Read looks a better fit with PRES, I imagine JH at PRES will have given it the once over.

[cockerhoop] 06/2/2017 12:35

Rhomboid,

Maybe they stumbled over WR whilst doing due diligence in South Yorkshire :-)

[cockerhoop] 06/2/2017 12:33

A little further background

[rhomboid] 06/2/2017 12:31

Thx Roger, interesting comment attached

"The assets bring much needed additional capacity to meet our future growth plans. We have immediate contracts in place to fill the factory with overspill from existing operations, and real potential to develop additional
business in both current and new markets. We will continue serve the market under the Whiteley Read name and I’m excited by the prospect of working to drive the company forward/into better times.”

I still think there's a fit here with PRES though....

[rogerrail] 06/2/2017 12:24

I am surprised there was no RNS to cover this purchase back in December :

[steve3sandal] 03/2/2017 19:58

Clearly the IC tip today has driven the price up. This is all out there, nothing Simon T hasn't written up before. Potted as I don't want to breach any copyright.

Avingtrans
(AVG), a maker of critical components and services to energy, medical and industrial sectors, is a classic Benjamin Graham value play, and one where the investment risk looks weighted firmly to the upside.

The board’s investment strategy is to acquire assets, restructure them to improve efficiency, and then sell them on to release the hidden value in the balance sheet. Importantly, the directors have been rather successful....

Under the leadership of chief executive Steve McQuillan, finance director Stephen King and chairman Roger McDowell, who between them own almost 10 per cent of the shares...

It’s not difficult to see why, given that the company’s share price is trading 30 per cent below pro-forma book value of 270p a share, even though I estimate that Avingtrans retains net cash of £26.1m, a sum worth 143p a share, after accounting for transactions costs on the disposal and working capital movements. This means that we are effectively getting £10.1m, or 55p a share, of fixed assets in the price for free, in addition to £4.6m of current assets. That’s anomalous.....

For example, Avingtrans’ energy and medical division diversified into the materials technology market last year, winning a three-year contract worth £3.5m to provide composite components for airport scanners with Rapiscan, a leading security screening provider based in California. Avingtrans is providing key components for Rapiscan’s new and groundbreaking airport scanner, the RTT110 (real time tomography), the first scanner to successfully pass the European Civil Aviation Conference’s (ECAC) Standard 3 threat detection test for baggage-borne explosive risks – a standard that will become compulsory....

In addition, Avingtrans’ Stainless Metalcraft subsidiary signed a framework agreement worth £1m a year with Bruker BioSpin AG, a Switzerland-based market leader in analytical magnetic resonance instruments, to produce high integrity cryostat components for Bruker’s nuclear magnetic resonance systems (NMR). NMR spectroscopy complements other structural and analytical techniques, such as X-ray, crystallography and mass spectrometry, and can be used alongside MRI-related technology to provide multidimensional images and spatially resolved information. The division also signed a 10-year agreement worth £9m to produce high integrity cryostat components for NMR....

I would also flag up that Metalcraft has a lucrative 10-year contract with Sellafield, worth £47m, to provide waste storage containers for the Cumbrian nuclear power station. Phase one of the project is worth between £5m and £8m over a two- to three-year period and covers the set-up and development of a production facility for nuclear waste storage containers. During the second phase,.....

It was a landmark contract for Metalcraft and Avingtrans’ directors rightly describe the potential in nuclear decommissioning as “a cracking opportunity”. I wholeheartedly agree because the first tranche of the contract represents just 10 per cent of the potential business at Sellafield and the nuclear power station will need more than 40,000 of these waste containers over the next 20 to 30 years, according to chairman Roger McDowell. Furthermore...

True, with the company’s highly profitable aerospace division sold, Avingtrans’ profits will be modest in the current financial year to the end of May 2017 before the full benefits of the aforementioned contract wins kick in. This explains why analyst David Buxton at FinnCap believes that pre-tax profit can rise more than sixfold to £1.3m on revenue of £31m in the 12 months to the end of May 2018. But the real opportunity here is to scale up the retained businesses through earnings-accretive acquisitions and repeat the success enjoyed in scaling up the aerospace division. And that’s simply not being priced in.

Strip out net funds of 143p a share and the shares are effectively being valued on six times forward earnings.....

[jestercat2] 03/2/2017 12:38

Hence why it's currently cash-rich

[cockerhoop] 03/2/2017 09:03

There was a tender offer for 50% of the shares at £2 (£28m) - the takeup though was less than the full 50% so only £19.4m was returned.

[bookbroker] 03/2/2017 08:58

Has this co. actually returned any capital to shareholders, I was in earlier last year, sold out the sale of Sigma, but was expecting the price to re-state the reduction in capital when the distribution or offer terms were accepted by shareholders!

[dgwinterbottom] 03/2/2017 08:29

I see the share price is up`15p at the mo is this all on the back of the IC article?

[steve3sandal] 02/2/2017 20:59

FYI, AVG is one of Simon Thompson's (IC) 2017 Bargain Shares. As a tight holder I will watch 8am proceedings with interest tomorrow.

[jestercat2] 01/2/2017 11:32

Yes - it's pretty obvious that a few buys (or sells) are now having a noticeable impact on the share price - as you say, no doubt due to only half the previous number of shares now being in circulation.

[dgwinterbottom] 01/2/2017 10:45

Noticeable activity over the last couple of days, probably in anticipation of the Interims that I understand are due on 17th Feb. No doubt the fact that approx. half the shares now in circulation than before may also have some effect, interesting times and the 3M3 boxes have not yet ramped up!!

[affemoose] 06/1/2017 14:51

Ciao guys n gals.

Did some homework here and decided that this share is not in my comfort zone and have bailed. Just cannot see where profits significant enough to raise this share up will come from.

Didnt dump all at once, trickled in 3 sells.

Wishing you all the very best of luck.

Affe

[jopper74] 19/12/2016 11:10

santa rally to £2???

[tiswas] 12/12/2016 21:29

What a pathetic RNS. An MD exercises options on 17000 shares at 176 and sells at 187. No confidence to hold and makes less than £2k. Should have paid him the cash and saved 17000 shares being issued and the cost of an RNS!

[affemoose] 09/12/2016 17:04

thx for the info!!

[rogerrail] 09/12/2016 16:19

DG

Actually it's good that you pulled me up on the meaning of SMR , as it could also apply to Steam Methane Reformers! (google "H21 Leeds city gate", proposal to create a hydrogen gas grid, although I favour the UK backed PEM electrolysers & Sheffield firm ITM, a customer of PRES I recall)

Personally I hope AVG steer clear of any more involvement in Oil and Gas, there may be good money to be made there if the oil price improves, but IMO the future is elsewhere.

[cockerhoop] 09/12/2016 12:48

PRES do have some really nice business's in the PMC division, Almet and Roota are superb.

RHL would appear to be a good fit but slightly scary!