Avingtrans Share Discussion Threads

[rogerrail] 22/10/2013 08:53

Just a hunch, Nigel Wray adding again??? 15% to 18% to 19% past two years.

[cockneyrebel] 22/10/2013 08:30

MM's desperate not to raise the ask over 57p - walking the bid up in fractions to avoid it. Duno why they want to keep it there but suspect filling a big order at that level if they can imo.

Perhaps a rapid rise might trigger an RNS?

Pure guess - no ramp, I'm long so I would say that.

It will crack soon imo.

All imo/dyor etc.

DGWinterbottom - my thread has the ticker CR. Or find me on Twitter



CR

[dgwinterbottom] 22/10/2013 08:13

Ay130 - where might his thread be please?

[ayl30] 22/10/2013 07:57

W- CR is a great one for spotting shares where the share price is on the turn following a period of decline. Go to his thread to see examples, you mean you didn't know - you have been missing out big time

[dgwinterbottom] 22/10/2013 07:46

"Got me wondering if there's a bid coming here." Yes CR, that crossed my mind as well. Could someone enlighten me as to "the bowl" characteristic please?

[ayl30] 22/10/2013 07:30

Good results from GKN today bodes well as much of business is complimentary to AVG.CR, re possible t/o, AVG would slot in well for likes of GKN/Senior? Let's see what happens, either way AVG seems a good investment for medium term, would be happy to see +50% over next year

[cockneyrebel] 21/10/2013 21:01

Yep, that's a stonking move to come if this bowl plays out - 245p :-)

Got me wondering if there's a bid coming here. An engineering co doing quality metal-craft rather than metal bashing and growing earnings at around 60-70% this year and at least 20% for the year ahead.

Just musing, dunno if there is anything going on or whether they are just doing better than expected perhaps.

[lupins2] 21/10/2013 19:03

Looks like you've found another classic bowl CR.

[cockneyrebel] 21/10/2013 11:52

Well it has broken out through long term resistance and a huge gap up on the chart imo:

[dgwinterbottom] 21/10/2013 11:31

CR - You feel something is afoot? After all AGM is only just over two weeks away.................

[cockneyrebel] 21/10/2013 11:07

The volume here has been the highest since last March triggering this rise - that's more than a tip driving it imo.

CR

[briangeeee] 18/10/2013 15:20

Interesting take on it CR.

[wellum1959] 18/10/2013 11:48

Agree CR, growth with a sound balance sheet.

Mike

[cockneyrebel] 18/10/2013 11:41

First time I've seen anything like this at the end of the results:

"With the three recent acquisitions, we again signalled our intention to build shareholder value through targeted M&A activity. Whilst we cannot state that this will result in any further transactions during the current financial period, we will forcefully pursue any opportunity to enhance long-term value.
Sigma and Metalcraft are developing into clear market leaders in their chosen niche markets, providing customers with consistent quality as part of a world class supplier journey, with our growing Chinese presence providing crucial competitive advantage. Investors are invited to endorse our strategy and join us in developing a great British engineering story. Thank you for your support."


Tempted me to buy more at the time and topped up since. EPS growth forecast to go from 5.86p to 10p this year. The roundness of that 10p says to me that's a company steer with scope to beat imo and the likely earnings growth to be more like 100%. Either way the fwd PE is likely to be around 10 or less come year end at this price imo.

Whatever - that's growth at a fabulous price imo.

All imo/dyor etc.

CR

E

[dgwinterbottom] 18/10/2013 07:56

Anyone planning to attend the AGM?

[cockneyrebel] 17/10/2013 16:11

Ta.

150K buy just gone through, must have been a good tip :-)

CR

[jxman] 17/10/2013 15:49

Been tipped by sharecenter

[cockneyrebel] 17/10/2013 15:20

Why all the buying all of a sudden?

CR

[cestnous] 03/10/2013 08:11

"Shares" mag today;

Avingtrans takes flight
Ongoing transformation of the group could draw higher rating
Niche engineer Avingtrans (AVG:AIM) looks set to deliver double-digit earnings per share (EPS) growth and improved quality of earnings as it benefits from increased exposure to a buoyant civil aerospace sector.
Consensus forecasts for EPS of 10p in the 12 months to 31 May 2014 and 12.1p in the May 2015 fiscal year imply EPS growth of 43% and 20% respectively. On this basis a price/earnings ratio (PE) of 14.3 times falling to 11.8 does not seem too demanding. According to broker finnCap, the shares still trade at a 15% discount to the firm's aerospace peers for 2015.
Avingtrans
We last looked at the £39 million cap back in late spring (Small caps, Shares 30 May) and since then the stock has advanced 21.7% as the market has begun to pick up on its transformation. Avingtrans has two divisions. Aerospace-focused Sigma produces pipes for engine suppliers into civil aircraft. It has signed up £125 million of long-term contracts in the last 12 months including an £80 million ten-year agreement with Rolls-Royce (RR.). Metalcraft addresses the energy and medical sectors.
The metamorphosis has been facilitated by the £13.5 million divestment of machine tool unit Jena-Tec in November 2012. Some of the proceeds were used that same month to buy two aerospace related concerns – Aerotech for £1.9 million and PFW Farnborough for £1.85 million. In July Avingtrans then snapped up the loss-making Maloney Metalcraft for £1. The £2 million of cash acquired as part of the deal is expected to be sufficient to return the operation to profitability and management hope the purchase will bring scale in the oil and gas market.
Last month's (25 Sep) results made for positive reading. Earnings per share jumped 80% year-on-year to 7p, even once the exceptional £6 million profit from the sale of Jena-Tec was excluded. Sigma contributed 64% of revenues. Group net debt fell below £3 million for a gearing ratio of less than 10%.
A £3.3 million cash outflow is a potential concern as the company invests in the newly acquired businesses, although finance director Stephen King reassures Shares the group has 'plenty of headroom' here.
A 50% hike in the final dividend to 1.5p is a welcome display of confidence and although a prospective yield of 2% is relatively modest it is still an attraction given the paucity of income stocks on the junior market. According to chief executive officer Steve McQuillan the next step for the company could be a small bolt-on acquisition to increase Avingtrans' footprint in the US aerospace market.
Buy
There is scope for upside from the 143p mark and we would follow the consensus view.
SWOT ANALYSIS

STRENGTHS
• Increased exposure to aerospace
• Strong profit momentum
• Low net debt
WEAKNESSES
• Working capital consuming cashflow
• Acquisition risk
• Underperformance of Metalcraft
OPPORTUNITIES
• US aerospace market
• Energy markets
• Build the dividend
THREATS
• Maloney Metalcraft's losses
• Loss of key contracts
• Slowdown in civil aerospac

[cestnous] 01/10/2013 08:20

A big step forward for AVG. I expect this share to go a long way.

Edit;
Went down yesterday on 'market sentiment' by the same amount it has gone up today on an excellent announcement. Pathetic really.

[cockneyrebel] 01/10/2013 07:46

All new business or would be a 'contract extension' imo.

CR

[zipstuck] 01/10/2013 07:40

New contract - but not sure how much is new business as alreday supplying for 4 years.

[cestnous] 27/9/2013 09:35

Avingtrans still on the ascent
I.C. TIP UPDATE
Avingtrans PLC (AVG)
GROWTH
MEDIUM RISK

Our previous tip
WE SAIDBuy
WHEN4 March 2011
PRICE61p
TIP PERFORMANCE TO DATE+131%
Avingtrans (AVG) generated record sales last year and a trio of aerospace orders worth £125m over 10 years beefed up the order book. Clearly, a series of acquisitions helped the engineer, but organic growth was impressive, too, and the ongoing boom in civil aerospace and improvements elsewhere suggests there's more to come.

Strip out one-off items and pre-tax profit jumped almost 90 per cent to £1.9m, most of it from supplying rigid and flexible pipes to big names like Rolls-Royce. Aerospace sales jumped 71 per cent, and were up by a quarter even before acquisitions. A 16 per cent increase in divisional operating profit would have been higher had it not been for further losses at the composites business. Still, the unit has won more work in Formula One and will lose much less this year. Its new Farnborough unit is profitable and takes Avingtrans into ducts and nacelles, too. But the energy & medical unit is still not pulling its weight. It made just £258,000 profit on sales of £16.1m, largely due to losses at road signs and gantries business Crown, and start-up costs in China, where the company will make parts for Siemens MRI scanners. However, Crown could make money this year and China is almost up and running.

Broker Numis Securities expects adjusted pre-tax profit will double to £3.8m in 2014, giving adjusted EPS of 10p (from 7p in 2013).

AVINGTRANS (AVG)
ORD PRICE: 141p MARKET VALUE: £38.2m
TOUCH: 138-143p 12-MONTH HIGH: 141p LOW: 87p
DIVIDEND YIELD: 1.1% PE RATIO: 29
NET ASSET VALUE: 113p* NET DEBT: 10%
Year to 31 May Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2009 37.6 1.83 5.1 nil
2010 28.6 0.47 2.4 nil
2011 36.3 1.42 4.9 0.40
2012 32.2 0.01 nil 1.00
2013 45.3 1.34 4.9 1.50
% change +41 - - +50
Ex-div: 30 Oct

Payment: 12 Dec

*Includes intangible assets of £11.9m, or 44p a share

SHARE TIP UPDATE:
Aerospace is driving Avingtrans, but business is improving elsewhere and, despite more than doubling on our buy tip (61p, 4 Mar 2011), an annualised 2014 forward PE ratio of 12 is still a significant discount to the sector average. Buy.

Last IC view: Buy, 103p, 28 Feb 2013

[cockneyrebel] 25/9/2013 10:34

First I've seen this in a set of results:

Sigma and Metalcraft are developing into clear market leaders in their chosen niche markets, providing customers with consistent quality as part of a world class supplier journey, with our growing Chinese presence providing crucial competitive advantage. Investors are invited to endorse our strategy and join us in developing a great British engineering story. Thank you for your support.

[dgwinterbottom] 25/9/2013 10:30

Anyone planning to attend the AGM?