A bit (well a lot) corny but a veterinary discussion on the Adaptix 3D x-ray scanner. |
Nice rise ahead of possible Jan TU....? DYOR |
I'm pretty sure he isn't (if his portfolio on LinkedIn is to be believed). |
Im pretty sure PH is a shareholder here. Rather be in this than the champagne charlies at AGFX (which BG also supports). Never going to get the true story of what went on there. |
PH = Brummy Git!!! |
I'm always intrigued that with all his access PH hasn't taken a position here especially as the Steve's appear to be better capital allocators than he is. Maybe Brummy_Git might like to comment? |
PH was also interviewing a fund manager who just shook his head in disbelief saying ‘it’s just aim, isn’t it.’ PS also commented that it had done well to track sideways for a couple of years in comparison to the rest of AIM. I just top up every time it falls back around £3.80. It’s obviously going to take some kind of catalyst to rerate. Either the sale or sales of medical equipment, its newest challenges which it bought at rock bottom like everything it buys to turn around. Another fund manager said it’s possibly a triple bagger never mind double the price. Patience is required and obviously some kind of recovery in sentiment. If Trump does get some kind of settlement for Ukraine as well this year that really will be a game changer for quality stock like this. |
Small-Cap Investing with Paul Hill & Paul Scott
Streamed live on 3 Jan 2025
62:20 Avingtrans |
Good spot CH. there is a lot of value to unlock from asset sales. Will they return some to shareholders? They might be tempted to go larger on more Nuclear waste containers, especially as they may otherwise have to license some of their knowledge to rival/competitors. Booths could possibly be another area of expansion. Just feels as though the kind of bargain they hopefully achieved with Adaptix was a bit of a once in a lifetime kind of deal, which will be hard to repeat, not to mention the length of time and investment it takes to achieve fruition. It would seem finding growth from within might be more profitable if a little dull. |
HT Fluid Handling has been removed from Hayward Tyler Group control and renamed Slack & Parr Group.
Clearing the decks for a Hayward Tyler sale? |
DGW,
Cheers for the write up.
Isn't the potential Luton land the actual current Hayward Tyler site rather than surplus? ie they'd have to relocate the business to a new greenfield site. |
Thanks from me as well.Note comments about Luton land. |
DGW. Many thanks (once again!)for the write-up of the AGM. NW |
Very grateful for the update. It is steady as you go but would be good to see some sizeable contract wins over the months ahead.My sense is that the focus is
A possible sale of pump division once slack and parr performing which could be next year. Secondly driving sales in adaptix and getting FDA approval for Magnetica. A few bolt on acquisitions and driving booth to meet its potential which seems to be substantial. |
Very informative, thank you. |
Yes . Second that emotion. Well done DGW and many thanks. |
Thanks for taking the time to write-up your AGM visit, DGW and share with us. All seems to be ticking over nicely. |
 It being a couple of years since I last journeyed to Birmingham I decided it was time for a further visit, however things did not start well when the Avanti train managed to arrive late with just 15 mins to the start of the meeting. A hasty rush to the venue followed in an attempt to make the start of the meeting however proceedings had commenced by the time of my arrival and while the temperature outside was around freezing the welcome was as always very warm.
As in my last visit I was the only shareholder to attend and so it was my turn to bat. I asked about the current situation in regard to the land at Luton, and whilst there has been interest in the background of late no particular effort has been made to pursue further due to the attention being given to other more pressing issues i.e.: Magnetica and Adaptix. It is thought if/when the general economy improves greater interest may appear but should that not be the case it will be bundled as part of any Hayward Tyler sale in the future.
There has been much interest in Adaptix at the various Exhibition and trade shows since the attendance at the Chicago event last year especially at the Non Destructive testing (NDT) related event. The relative compactness of the product has enable them to take an example to the various events so those present can see the quality of the image produced, it’s one thing to show an image on a sales pamphlet quite another to see it in reality. There has been much interest in the Adaptix offering with enquiries being received from much of Europe including Norway, Sweden , Germany and as far away as Mexico. Some years ago a similar product was produced by a company called OTI who sold some 200 units, they were subsequently taken over by General Electric and the product soon discontinued. As spares are now no longer available the customers are eager to acquire replacement products and one of the people involved in the initial distribution of these units is involved with the sales/distribution of Adaptix. The product was well received at the Farnborough Airshow earlier this year from the NDT aspect and winning the Emerging Technology Award was a surprise to all considering they only expected to get a lower ranking position that would give them some headline publicity.
Magnetica is awaiting the award of the FDA 510k award, this has been delayed due to the Americans concern over the cyber security requirements for imaging systems. The goal posts have kept being moved as yet another stipulation is published, some of which can run to many pages in terms of specification. Thankfully, there have been no updates for the last couple of months therefore it is hope they have now completed their requirement, if so a very approximate date of 501k is thought to be mid calendar 2025.Whilst the equipment is aimed at the Orthopaedic market there has been no sales approach to hospitals for the simple reason it would be a hard sell against the established MRI manufacturers of GE & Siemens etc.
As to the future of Magnetica and Adaptix the present uses are dictated by the bandwidth currently used in the equipment but research is being undertaken as to what else might the equipment be capable of if experiments are tried into varying bandwidths. At the moment both products are still much below the radar and their true value cannot be seen until more of the products become available within the fields of NDT, Veterinary & Orthopaedic. The spectre of Trade tariffs being imposed by the impending Trump administration is not of undue concern as much of the equipment could be manufactured in the USA and whilst the spectrometer is manufactured by Tecmag in the USA there will of course be a tariff on the Magnets produced at Abingdon. A possible IPO of the division or part thereof might be considered be it on the FTSE market or NASDAQ that remains to be seen or perhaps a trade sale to an interested buyer.
Turning to the rest of the Group, the Nuclear waste boxes for Sellafield are ongoing, manufacturing about 10 boxes per month as part of the current contract, there is no expected customers envisaged from outside the UK as these boxes are to a very high spec compared to other countries, this is because of the nature of the waste, especially from the former Magnox sites that were not deployed anywhere else in the world.
The usual mirage of the Sellafield tender appearing for around £800m is reckoned to be once again “next year” as has been said on an annual basis since 2018, whilst the initial competitor has withdrawn from the field, likely participants in the competition are thought to be Bendalls, Graham Engineering and possibly Goodwin. In each case it is more than likely that there will need to be a technology transfer which would of course bring further remuneration to Avingtrans. Should they be approached by one of the larger engineering companies looking at a joint venture to manufacture the boxes such approach will be declined.
Booths are well into the HS2 door contract and will soon commence manufacture of doors for the stations, the cancellation of the Northern part of the project is not seen as too much of a loss given they are busy with other work on such sites as the Elizabethan Line for London Underground, the Board believe there is still much good value to come within Booths and do not anticipate a sale in the short term.
Whilst there may be small bolt on acquisitions to the existing units, no sizeable additions are expected perhaps until one of the existing divisions is sold.
In conclusion it was once again a most interesting meeting indicating there is a lot going on in each of the many divisions and as in the past I was happy to propose a vote of thanks to the Board. |
I remember Hills and Mills interview recently suggested. The two medical businesses would double the price of the company if successful, as they are currently valued at zero. My guess is they will wait to see how successful before making a decision to sell one or both. Then there is a large plot of land near Luton that they are still trying to sell, the nuclear waste contracts, the pumps business, the blast proof doors etc. how the market values all this for only 4 quid is beyond me. Singer are saying 190 million (conservative) for engineering business (£5.25 per share) £85-140 million for Adaptix and Magnetica for an IPO or trade sale at this stage based on comparable peer group valations!. I think at one stage there was talk of whether they needed a small raise to launch Magnetica and or Adaptix. I guess we are passed that stage now. Wish I had more to invest. My mistake about a couple of years. They think AGV is worth between £7.75 and £9.75 as is. |
It's pretty brief but attempts to put a valuation on the medical businesses. Its fair value range is £85m-£140m (251p-422p).
Adaptix f/c to do £4m revenue this year, £9m FY26. |
Apparently very bullish note out from Singers. Have not seen it |
Thanks Chipss. That’s a bit far for me. Doubt if. I would have gone to London either to be honest. Maybe Mills & Hills will be there! |
The AGM is being held at Shakespeare Martineau LLP, No1 Colmore Square, Birmingham, B4 6AA commencing at 11am. |
Sadly in Birmingham |
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