Avingtrans Share Discussion Threads

[energeticbacker] 10/2/2021 17:28

Investor's Champion "...forecast earnings multiple of 14x (share price 301p), which looks quite full for an engineering business like this."

[alter ego] 10/2/2021 15:41

Well I thought these were very respectable results. Somewhat disappointed to see the fall back in share price but I guess the market wants more excitement, not competence and patient management of the business.

"Avingtrans continues to make good progress during the pandemic and has proven to be resilient. Following our PIE strategy, both Booth Industries and Energy Steel are continuing to improve since acquisition and the potentially transformational deal with Magnetica (post period end) is an exciting prospect for the medical division. The period result shows improving profits against flat revenues, once more demonstrating our agility, even in adversity."

[cockerhoop] 11/1/2021 22:36

Regards Luton I'm not sure in the interview if CM was talking gross or net after financing a new green field site.

£20m doesn't seem massive for a site capable of 1000 homes. Could have a £200m potential total project value.

Regards the Medtech JV. Magnetica have developed an extremity MRI scanner (arms, legs, etc). Much smaller than a full body MRI. They had another JV partner who (surprisingly according to Magnetica) pulled out after the product had been developed but prior being marketed etc. AVG have stepped in with that funding and combined the 3 businesses.

[dgwinterbottom] 11/1/2021 20:19

I have seen figures quoted of between £15m & £30m that seems to confirm the figure quoted by Christopher Mills.

Anyone have any thoughts as to what the JV might be about? it seems that Scientific Magnets & Tecmag being wound into the JV gives AVG 60% of the project but yet the Meditech name is the one going forward. That said the Board decisions in the past have always proved to be correct with hindsight therefore I await developments with interest!!

[cockerhoop] 11/1/2021 18:01

Christopher Mills suggested in November that it was over £20m having bought a fair chunk of Nigel Wrays stake (hinting at CGT planning).

There's also been no mention on here of the recent Magnetica JV which looks to complete the circle of the MRI business with a mobile MRI extremity scanner ready to market. The incremental investments AVG making suggest the JV valued around £50m with AVG stake around £30m.

[arthur_lame_stocks] 11/1/2021 16:12

Has anyone got any idea what that Luton site is worth?

[westofengland] 27/11/2020 13:17

Solid group of businesses run by smart people.

Some good new shareholders aboard who bought Nigel Wray's shares.

I sense a new high for Avingtrans in the year ahead.

[dgwinterbottom] 27/11/2020 11:51

So a month on since Nigel Wray waved goodbye and it would appear has done no harm to the share price with a rise of just shy of 10% since then. Slowly but surely we are working our way back to an share price of 300p, not seen since the Covid fall. I wonder if this figure represents being overpriced or future potential built in, my problem being I have never found a formula for calculation of share price from Annual Reports etc. The highest the share price climbed to before the pandemic was 330p perhaps reflecting the niche - nuclear - that the Group operates in. Interesting times!!

[westofengland] 23/10/2020 12:48

I suggest the other trades are some of the buyers of Nigel Wray's stock. I guess we will hear who these are once the trades have settled. Then we csn take a view on the situation.Unlikely to be any issues given the speed at which the stock was placed.

[dgwinterbottom] 23/10/2020 10:05

So, Nigel Wray has left Avingtrans after many years, with at one time if I remember correctly about 15% of the company, no doubt he has done well, at one time the shares were as low as 20p. Whilst he has placed his 3.24m shares in a placing there have also been two other large sells, one of 1.07m and the other of 1.73m both within two minutes of the Nigel Wray placing. Therefore a total of 6.04 shares have been placed in the market or approx 18% of issued share, I wonder what may be the reason for these significant sells?

[westofengland] 02/10/2020 21:54

I have held shares in AVG since the Haywatd Tyler takeover. It is a well managed business and I added twice earlier thia year. The Booth acquisition is a winner. A great play on nuclear power servicing and a beneficiary of higher infrastructure spend in UK and US.

Glad that there's the prospect of a dividend return next year together with potential deals during a difficult time for potential targets.

[value hound] 01/10/2020 12:47

Tipped by Simon Thompson in the IC today.

[energeticbacker] 30/9/2020 10:06

Avingtrans has secured a multi-year contract worth £36m to supply cross passage doors for the HS2 rail link.

Most of the revenues for this contract will be generated when the door manufacturing and installation begins in 2025 with a project completion date of 2030.

The assets of Booth were acquired in July 2019 from the administrators for only £1.8m.

More on the Investor's Champion website.

[cockerhoop] 08/7/2020 19:11

Not quite sure why you're getting so het up Mr Macgregor, AVG have committed as part the planning conditions to create a brand new factory in Luton more suitable to their current needs so maintaining jobs. The new commercial part of the housing development is expected to create a further 370 jobs. The previous investment increased the factory by 40% but the remaining 60% was still old and was carried out by somewhat clueless prior management. I assume some of the investment in plant will be transferred to the new premises.

AVG's job is to create value for their shareholders -they obviously feel a new more efficient unit with better transport links whilst making some potential windfall property gains takes the company forward.

If you're truly worried about government money being spaffed you'd be better off looking at the £5.5bn spent on PPE supplied by companies involved in Pest Control and Financial services!

[mw8156] 08/7/2020 13:43

presumably they'll be able to reestablish this elsewhere,
looks as though the present site is handy for the railway, airport and town centre so zoned for residential.

[steve3sandal] 07/7/2020 16:24

1000 units x £15,000 per plot/unit = £15m. I have no idea but it sounds like PIE. I remember the Royal visit whilst all around HAYT was leaking cash badly.

[tiswas] 07/7/2020 08:12

Any ideas what the site may be worth now they have pp?

[cockerhoop] 07/7/2020 08:06

If you count remote as 5 minutes walk from Luton Parkway Station. New Redrow development next door.

[cerrito] 07/7/2020 07:52

At first glance good results and indeed there seems to have been a leak given the share price increase yesterday afternoon.
I see they mention the £4.8 Korea deal and £2.5m East Kilbride deal and I could see no prior reference to them.
I had not seen before they were planning to close the Luton plant-I recalled all the fanfare when Prince William went there a few years ago.
Good thinking though from my memory of going to a Hayd AGM some years ago it is in a remote and industrial part of town.

[cerrito] 13/4/2020 09:18

I am having a look here to see if I should buy more shares, having reduced quite a lot three to four weeks ago. Indeed I would have reduced earlier if I had done then something I only did this weekend and have a look at the numbers in the interims which to me were rather disappointing compared to the upbeat comment.
I take the cancellation of the dividend -£450k-in my stride; given the good vibes about Booth I am a bit surprised that they are deferring the works at Bolton.
I would have thought that the £8m of headroom in their facilities would be more than sufficient and I can go along with their comment that their bankers will be supportive. That said the footnotes of the AR do not tell us much about their then banking arrangements.
They may want to have their powder dry in case there are distressed sales of companies they can integrate. The board will also be mindful of the relationship between operating profit and finance costs in the interims.
The reduction in board compensation a good move, saving both almost £200k on an annual basis and also good PR. Indeed I see last year the CEO and CFO earned £424K and £344k which given the marcap has peaked at £90m plus and is currently £60m is generous. Note the other employees-monthly average 764- got between them (or more precise cost the company) £35.6m an average of about £47k which is higher than I would have expected and suggests a skilled work force.
FWIW which to me is very minimal, I see that net assets at 11.19 were at a very slight premium to the current marcap but as nearly half of net assets were made up of goodwill and other intangibles, very little store can be placed in this.
It seems to me that the shares are pretty fairly priced at this time. The company does have a very stable core of shareholders with no recent changes of significance and they are right that big picture they are in the right businesses,
That said they do need to increase their returns to justify the current mar cap of £62m odd and we trust that no major shareholder has a desire or need to reduce.
Welcome the perspective of others.