Avingtrans Share Discussion Threads

[cerrito] 23/1/2020 10:07

I find it frustrating when companies do not spell out what their understanding of market expectations are.
I am about to ask them to spell this out in future but it is an uphill fight.
As you say fillipe the price did get frothy and for me no reason for it to fall today.
I find this an odd share. I pay my holding here very little attention and am content to watch the share price go up.
The shareholding base seems very stable but the plus 3%ers have 44% of the shares so I would expect more activity.
Did anyone make the AGM?
I am reluctant to go from London to Birmingham for it as I am concerned I would be the only one there.

[fillipe] 17/1/2020 10:14

The cream being taken off the top following today's holding RNS.

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[cfro] 13/1/2020 07:32

Hayward Tyler wins £2m solar contract.

[fillipe] 10/1/2020 14:43

Another sunny day, another +3%.

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[puffintickler] 09/1/2020 13:30

Me neither, there may be a tip out there or perhaps the market has finally woken to the potential here. I imagine the price will pull back a bit so I've dabbled in a bit of top slicing.

[fillipe] 09/1/2020 09:34

Another strong day going on today, although I don't know what's driving it.

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[fredfishcake] 09/1/2020 08:55

We've had a good run - anyone thinking of selling or is there more to come?

[fillipe] 07/1/2020 16:30

AVG being liked a lot, if the trades today are anything to go by.

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[fillipe] 03/1/2020 09:43

This one must be 100% off the radars!

AVG have been regularly ticking up to a doubling throughout almost the whole of the past twelve months.

169p >>>> 287p.... so what's not to like and run along with?

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[cerrito] 10/11/2019 20:46

anyone going to the AGM?
Not practical for me to make it and welcome feedback from anyone who can.

[meijiman] 30/10/2019 12:42

Yes and what a shocking indictment of the previous owners management..complete deadlegs.

[steve3sandal] 30/10/2019 08:44

Well done Booth Industries. Looks like this might have been picked up on a PE of about 1x. Well done Avingtrans.

[fillipe] 15/10/2019 11:00

277.245p paid for AVG this morning.

Best bid/ask on show is now 270p- 280p, so a nice riser in recent times.

Moving steadily towards finnCap's 26th June tp of 300p.

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[strollingmolby] 07/10/2019 16:17

And that would appear to be an all time high! Well done Avingtrans, onwards and upwards.

[cerrito] 22/9/2019 20:56

Thanks for posting that useful summary Jeff H
Roger Rail
Thanks for that and have provoked me to see that while Medical made an operating profit year ending 5/17 they have had operating losses in the last two years-albeit small.

[rogerrail] 22/9/2019 20:25

Despite good results in energy, I am not sure the management know what they are doing with medical division. It has been struggling ever since I can remember, at least for the past 6 years or so.

[jeff h] 22/9/2019 13:15

Simon Thompson of the IC view for you Cerrito:-


Avingtrans (AVG:245p), a designer, manufacturer and supplier of original equipment, systems and aftermarket services to the energy and medical sectors, announced a major earnings beat for the 2018-19 financial year ahead of the results when I raised my target price from 275p to 300p (‘Avingtrans posts major earnings beat’, 26 June 2019). Shareholders have been rewarded with a higher dividend (3.8p a share) for the eighth consecutive year.

In the event, the results were even better than house broker finnCap’s upgraded expectations. Avingtrans reported a 34 per cent rise in revenue to a record high of £105m, partly driven by acquisitions but also driven by 11 per cent organic growth. It’s a more profitable income stream, too, as operational improvements made meant that underlying pre-tax profit surged by 124 per cent to £5.3m, and adjusted earnings per share (EPS) increased by 76 per cent to 14.9p on a lower than expected tax charge. That was well ahead of finnCap’s 12.7p upgraded EPS forecasts in June. There is scope for outperformance in the new financial year, too.

Factoring in a combination of ongoing strong organic growth and the benefits of some small acquisitions, finnCap’s forecasts annual revenue of £125m (over 80 per cent is already covered by the order book) and a 17 per cent rise in pre-tax profit to £6.2m. On this basis, expect a near 11 per cent hike in EPS of 16.5p. However, Avingtrans has £35.4m of tax losses available from acquisitions made, and UK corporation tax rate will reduce to 17 per cent in April 2020. finnCap’s EPS estimate is looking conservative in my view.

Operationally, Avingtrans’ shrewd management team has driven a sustained improvement in the performance of the Hayward Tyler business, acquired in September 2017, which forms part of its engineered pumps and motors division. Finance director Stephen King told me during my results call that the unit, which accounts for almost half of group turnover, posted a 12.3 per cent cash profit margin and, with the benefit of further operational improvements, should lift margins into the 13 to 15 per cent range this year. The unit has secured a number of key contracts this year, including a £10m award with Vattenfall in Sweden for nuclear life extension equipment, and £4.8m of orders to provide critical pumps and spare parts to nuclear reactors in the US and South Korea.

It’s worth noting, too, that higher margin aftermarket sales are increasing as a proportion of the overall revenue mix (up from 42 to 45.5 per cent), a trend that is set to continue, and boosted by the small bolt-on acquisition of Energy Steel, a North American manufacturer of components for the civil nuclear power industry. The U.S.A. is the biggest civil nuclear market in the world, having 99 reactors that account for 30 per cent of the world’s nuclear electricity. Hayward Tyler has over 600 pumps in active service in nuclear applications globally, and the acquisition of Energy Steel expands the company’s product lines for both new and existing customers.

Avingtrans earned £9.4m of cash profit in the 2018/19 financial year which funded £1.1m of dividends, a £2.9m investment in capital expenditure, £400,000 in restructuring acquisitions, and a reduction in net debt from £7.1m to £2m. The proven track record of the board to identify turn round situations, improve their operational performance and then reward shareholders with hefty cash returns when they are sold is the main reason why I included the shares in my market-beating 2017 Bargain Shares Portfolio.

Priced on a substantial discount to analysts’ 335p a share sum-of-the-parts valuations, I maintain my positive stance with the shares rated on a prospective price/earnings (PE) ratio of 15, falling to a PE ratio of 12 in the 2020/21 financial year when finnCap predicts Avingtrans will make EPS of 20.3p. Buy.

[cerrito] 21/9/2019 21:25

The full year results seem to have produced rather a yawn on the board . I have quite a lot of these through pre HAYT and HAYT holdings. The last thing I did was to sell a few January 2018 when I needed cash. I do not see myself buying or selling in the immediate future.They have as they say a strong balance sheet and a comfortable cash position and I cannot see anything negative on the horizon.
I am going on the basis that their wording of pinpointing specific additional acquisitions is that they will be like the Booth one rather than anything big.
My problem is that though I have run into the Chairman before I have no feel for the management. My impression is that the AGM’s are rather perfunctory and not really worth the trip from London but look forward to being put right on this by you on the board.
They seem to be very loath to do IR for retail;their institutional share base does not rotate much which would partly explain the high bid/offer spread but as the %age of shares held by those with 3% plus is 44% which is not all that high they must have quite a large retail following. I was interested to see that the voter turnout at the last AGM was about 1/3rd which does not suggest a very engaged shareholder base.
Good to see they are comfortable they can take Brexit in their stride.
Things that caught me eye:
The increase in AM for EPM between 17/18 and 18/19 from £21.6m to & 35.1m was very impressive as was the increase in OE from £20.1m to £31.5m.
Also good to see EPM big increase in adjusted ebitda between the two years..
Also what was good was the improvement of H2 over H1. Ie operating profit was £1m and £2.6m in the two halves and operating cash flow went up from £1.7m to £7.3m.
When the AR is released I will see if there is anything of interest in the footnotes,

[puffintickler] 26/6/2019 07:02

Very nice update.

Should have topped up at £1.75!

[tomboyb] 11/6/2019 14:26

AVG know it is a very good acquisition -

RHL practically gave it away -

[tomboyb] 11/6/2019 10:51

Fantastic bargain -

[18bt] 11/6/2019 09:22

Agreed, I read as cash and debt free

[cockerhoop] 11/6/2019 09:16

I read that as excluding both cash & debtors ie clean cash & debt free.

[tomboyb] 11/6/2019 09:02

An excellent acquisition -

Not mentioned is the additional cash that BOOTH has, and it EXCLUDES its debtor book -!!

Bargain or what!

Net assets in itself were 2.4million -