Avingtrans Share Discussion Threads

[cisk] 18/11/2021 19:42

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?

[dgwinterbottom] 18/11/2021 19:29

Hi Cisk - nice to hear from you once again, as I suggested in the past not living in Malta are you by any chance?

[nw1234] 18/11/2021 19:19

DGW, many thanks for the AGM write-up.

[cisk] 18/11/2021 19:15

DGW thanks for the very thorough writeup - I no longer live in the UK so not practical to attend but very grateful for your insight.

Like you I've been invested for over 10 years now - my original entry price was 66p - alas I bought and sold along the way and took some profits too early. But I did buy back and will continue to hold.

Lots of potentially exciting developments coming along - and wouldn't be surprised if they make a small bolt on acquisition or two. However the last interview I watched with the two Steves - the message came through loud and clear that they won't overpay.

So very happy to hold and good luck to all.

[dgwinterbottom] 18/11/2021 18:21

Having been an investor in AVG for over 10 years it had been some four years since I last attended an AGM and so in the light of recent events decided to return to Brum and renew my acquaintance with the Board. It was a good thing I did……230;.as I was the only shareholder present so had the full attention of the Board all to myself, their hospitality and response to my questions made it a most interesting and worthwhile visit.

My first question was in response to what I picked up from one of the podcasts with reference to Magnetica and the comment made that at some point in the future progression may well be made with another party, I asked for some detail on this.

Steve replied that as yet Magnetica has no market value other than that invested in it by AVG now and going forward, some 12 months from now the decision will be made as to whether they continue with another party or go it alone. The reason for going with others would be once the trials and final developments are completed the company would then have a much more recognised value and they may then progress to being a minority shareholder – say 30% - in association perhaps with one of the big names in MRI ie GE/Siemens etc. Thereafter the exit may be via a complete sale of the holding or by way of a flotation to the market.

The tie up with Adaptix has also proved of great value to date in terms of gaining knowledge through the collaboration. In hindsight it might have been preferable to have made a complete buy out of Adaptix however given their now increasing value this would no longer be possible though perhaps an increased stake my be taken in a further funding round. One thing that transpired was that it has raised the possibility of making paper scans such that instead of selling a unit to a customer it could be marketed as “pay per view” that would make it more attractive to smaller outlets in the medical/veterinary field. Another problem that has been solved would have been having scanned and gained an image of patients and sending to the cloud for perhaps another medical opinion gives rise to the issue of confidentiality with regards to patient records etc, again thanks to the Adaptix collaboration a solution has been realised. The future of moving in the slipstream of Adaptix looks to be very beneficial.

Composites

Composites has been ticking over with ongoing work for Rapiscan manufacturing units for not only baggage scanning in places such as airports but also parcel scanning for use by the Courier industry, indeed it has been the latter that has kept the business moving during the down time of the airlines and all but closure of the airports. Currently it is viewed that unless something significant turns up in the future the unit may well be sold.

Luton Site

The progress towards the building of apartments on the hitherto HT Luton site is still somewhat protracted especially given multiple parties are involved. That said, Luton Council is keen and enthusiastic in the project as similar projects by others are underway with Luton being seen as a convenient commuter point for Central London.

Nuclear

AVG is currently in collaboration with Rolls Royce in their recently announced government funding for the nuclear modular units. It is regarded that Rolls are the leaders in the field with their size of 470Mw units being an ideal size given the infrastructure required and the perceived cost of the energy produced vis the build cost, if one goes for anything smaller the cost of electricity produced rises accordingly. The construction of such sites is envisaged to be under a large covered area thereby eliminating the problems due to weather and considerable reducing overall build time. There are other parties involved in such projects with whom they are already working such as TerraPower in the US therefore involvement with multiple parties is quite possible.

Thus far the progress of 3M3 boxes for Sellafield has enabled them to have gained a position whereby they are the only manufacture to have achieved volume production status. The company so far has manufactured around 100 boxes for a current order of 1000 with the next phase order scheduled or expected in calendar year 22 but more likely 23. This will be a requirement for 15000 – at somewhere around £35k each -boxes that AVG is hopeful of a large slice of the order given their previously mentioned status, a side benefit is that they may be able to gain by selling technology transfer, to other companies who also receive orders, to get them up to volume production status as well!

Oil Gas Solar etc

Given the Govt commitment to reducing the use of fossil fuels the days of mass exploration in places like the North Sea back in the 1970s and 80’s are never going to return not even given the monopoly of supply currently held by the likes of the USSR.

However for a long time in the future legacy assets will require upgrades, replacement of time expired parts and other essential infrastructure in this highly regulated environment. Whilst there is no market to speak of in renewables – certainly not windfarms – the emergence of large solar generation sites are not seen as being anything other than providing items such as pumps and valves for the molten salt that is involved in the process. These projects are limited to places in the world that enjoy perpetual sunshine in order to gain the best results from such projects but equipment required is useful in other fields.
However one new area of interest is carbon capture, where in order to create such a facility considerable amounts of pumps, pipes and valves will be required of which of course AVG are leaders in the field.

Booth

The site extension is now complete allowing a more efficient production site and as has already been sees bodes well for the future. An approach was made previously in terms of its previous owner Redhall to acquire the company but a number of issues, given a legacy pension scheme and the fact the price was well outside the perceived value ruled out acquisition at the time, however the subsequent insolvency of Redhall removed just about all the problem issues making the unit far more viable. That said at time of acquisition the company had no cash, no sales team and no IT system, the introduction of these items has contributed in no small part to a very impressive turnaround. Enquiries are now being received with regard to blast proof doors for places involving the use of hydrogen for future energy projects.

Conclusion

It is very gratifying to see the progress that AVG has made over the years since I first invested, they have moved forward in a progressive and calculated manner becoming embedded in the fabric of nuclear decommissioning and ongoing support and may soon do the same in the MRI field. In my view the Board are to be commended for their management and guidance over the years past, and with experience gained, confidence in the future. I look forward to the future with great interest!!

[brummy_git] 17/11/2021 18:13

James Thorne of Columbia Threadneedle talks positively about Avingtrans here (44:05).

www.youtube.com/watch?v=wuSukSmxo_g&t=1s

[ayl30] 09/11/2021 07:11

Confirmation of RR nuclear deal will be potentially good news here

[cerrito] 21/10/2021 23:04

A good short punchy interview with the CEO done on September 30th whichI have just stumbled on.

[brummy_git] 13/10/2021 13:19

Avingtrans was discussed positively here with Jamie Constable of Singer Capital Markets & Paul Hill (starts in nuclear section at 27:45)

www.voxmarkets.co.uk/articles/singer-capital-markets-october-macro-outlook-3b74053

[brummy_git] 13/10/2021 07:41

Excellent strategic £2.5m investment by Avingtrans for a 5.9% stake in Oxford based
Adaptix Imaging.

An emerging medtech leader that is developing a low-cost, low dose, 3D portable X-ray imaging machine that could transform radiology.

All the news here.

www.linkedin.com/posts/paul-hill-a5994116_avg-sector-multiples-kpis-131021-activity-6853934542747697152-YDJW

[ayl30] 29/9/2021 08:18

Bit of a measly reaction to rns

[ayl30] 29/9/2021 07:31

Excellent rns today

[brummy_git] 29/9/2021 07:22

In this fascinating video, CEO Steve McQuillan & CFO Stephen King discuss today's consensus beating results.

Alongside explaining how Avingtrans has delivered 23% CAGR shareholder returns over the past decade & what’s lies ahead. Excellent watch.

www.voxmarkets.co.uk/articles/avingtrans-discusses-their-impressive-results-e0e40a4

Plus all the commentary & & comparative sector multiples/KPIs here. Indeed, I've lifted my sum-of-the-parts valuation to 526p/share vs 507p before.

www.linkedin.com/posts/paul-hill-a5994116_avingtrans-valuation-multiples-sector-kpis-activity-6848860483462725632-E6YT

[ayl30] 07/9/2021 09:06

Nice moves of late, results due end Sept

[cerrito] 22/7/2021 10:09

Had a belated read of a JM Finn note and saw the figures for Pre Tax Roce.
For this 21/22 FY they forecast 6.9% up from an estimated 6.7% last year and down from 7.7% in 128/19.
Somehow I had expected them to be higher.

[jg88721] 13/7/2021 09:27

enjoyed the video a lot. owned this company for years ... first time I've seen mgmt.

[brummy_git] 12/7/2021 07:11

A marvellous new £4.4m contract win for specialist engineer Avingtrans today. Find out all the news here.

www.linkedin.com/posts/paul-hill-a5994116_avg-activity-6820232518596378624-I0Rn

[ayl30] 12/7/2021 07:08

Nicecontract news today.

[westofengland] 08/7/2021 11:03

Thanks Brummy.

Very good to have the video which I will enjoy later.

I am very appreciative of the work you carry out and also enjoyed the Videos you made with Christopher Mills of North Atlantic/Harwood and Laurence Hulse of Gresham House Strategic.

All best

Adam

[brummy_git] 08/7/2021 10:07

Strong update today

AVG video went live earlier with CEO SMQ & CFO SK, alongside my updated sector multiples & KPIs (which can be downloaded) for investors.

www.linkedin.com/posts/paul-hill-a5994116_avingtrans-fy21-trading-update-activity-6818810332446830592-idAU

www.linkedin.com/posts/paul-hill-a5994116_avingtrans-sotp-and-sector-multiples-kpis-activity-6818802036650385408-f83G

Youtube link here:

[ayl30] 08/7/2021 07:23

Lovely company this, news should reinforce share price trend

[alter ego] 08/7/2021 07:19

trading update:
"Steve McQuillan, CEO of Avingtrans, commented: "We are delighted with the strong performance of the Group which will report results for the year ended 31 May 2021 in line with the previously upgraded market forecasts. Net cash in the business remains healthy which was strengthened following the successful sale of the Peter Brotherhood business in March."

"The Group is in a very good position to execute its PIE (pinpoint-invest-exit) strategy and its pipeline of opportunities is strong. The Board remains confident on the outlook for the Group which is reflected in the reinstatement of the full year dividend."

[dgwinterbottom] 01/7/2021 07:26

No trading update thus far!

[18bt] 29/6/2021 08:55

I suspect it's more to do with a SImon Thompson repeated rec. in the IC. Quoting Paul Hill who says fair value is 507p

[alter ego] 29/6/2021 08:53

also, a piece in the IC yesterday by Simon Thompson, suggesting that AVG valuation based on operating profit is 38% lower than the average of 18 sector peers. He says that a sum of the parts valuation would derive a valuation of about £5 a share.