Avingtrans Share Discussion Threads

[cerrito] 01/10/2015 21:49

Cannot remember reading such language in the Chairman’s statement before
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Please rest assured we do not intend to hide behind external market change factors, however convenient that may be. We know our performance must improve and we believe it can do so – significantly
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[dgwinterbottom] 01/10/2015 17:33

Roger - Agree with you about the Energy& Medical Division, indeed at the AGM last year the Chairman commented the value of the Sigma Aerospace business alone was worth more than the Mkt Cap! I feel they have done a good job of containment and damage limitation over the last 12 months and as you saty a re-rating is quite probably on the cards. I fully expect one things start to move Crown will also be a good standalone unit and ripe for its sale - a nice little earner!!!

Might you be at the AGM?

[rogerrail] 01/10/2015 12:38

The results were generally as expected.
IMO the Energy and medical division which accounts for roughly 40% of the turnover is currently not contributing to the share price valuation. However there are strong signs the business is turning round on a number of fronts and I expect a substantial re-rating closer to £2.00 when we get confirmation that it has, as the revenue run rate levels in aerospace have also now recovered.

[dgwinterbottom] 30/9/2015 10:32

Results!!!
Given they had a double whammy from both segments (Oil Industry & Aerospace)I feel they did well to contain the damage that it wrought. Coupled with that knowing they would take a hit, perhaps in bringing forward pre conceived restructuring they took the opportunity to "kitchen sink " and get all costs out of the way.

Some good long term orders in the pipeline coupled with a resurgent Crown that could see its prospects for a trade sale being brighter now should help to streamline things further.

[dgwinterbottom] 28/9/2015 17:31

Indeed interesting announcement Roger!

My guess is that the results will be announced this Wednesday or next Wednesday at the very latest!!

[rogerrail] 28/9/2015 13:25

I wonder if AVG is in line for another sizeable nuclear contract ?

From the Metalcraft site: "The company currently employs 162 people and already manufactures vessels, tanks and heat exchangers for nuclear clients including Sellafield and Rolls-Royce"

Recent Hinkley Point heat exchanger order for Rolls:



I would not be surprised if news is being held back for the yr end results announcement

[dgwinterbottom] 14/9/2015 08:08

Dozey1 - you say results are due on 1st October, has that been announced?

[dozey1] 12/9/2015 16:40

Im also interested in aerospace, but have been disappointed so far in my small dabble in AVG. Wonder if the news of the recent Typhoon sale to the Gulf will have any knock on effect.
Results are due on 1 October which seems a long time after the May 31 year end, and one would have wished to see a trading update of some sort in the interim. The hope is that the various small takeovers in the last couple of years will come together to make a more profitable outfit. Must say that was it not for the IHT relief associated with AIM shares I would probably not be on board.

[cisk] 04/9/2015 20:52

Hi DGW - no immediate plans to attend as currently I'm not a shareholder!

However I'm watching closely and may buy back in again. I think the long term story is good, but they have a few headwinds and possible indigestion in bedding down relatively recent acquisitions.

Tbh I'm more interested in adding more Senior or GKN - GKN in particular has been hit hard, and in my view the fall has been overdone. Their forward p/e is less than 10 and a fwd yield of 3.3% it's of great interest.

Apologies to others for the off-topic content. I guess I'm an aerospace fan.

[simon gordon] 03/9/2015 13:47

Normally AVG give a trading update to the May FY but this year nothing. There was an opportunity to do so with the Sonaca contract RNS in June. Is it a red flag?

[dgwinterbottom] 03/9/2015 10:31

Hi Cisk - long time no chat. I firmly believe they will come good as results of rationalization and the restoration of ops normal at RR continue. I have a number of questions to ask at the AGM, any chance you can be there.

[cisk] 03/9/2015 09:08

Yes Helium upped their stake, after dropping it down a while back, as I recall.

I sold out a while back after reading through from the woes at RR., but thinking maybe it's worth buying back at the current price.

[dgwinterbottom] 03/9/2015 08:26

Just found this re Avingtrans posted yesterday:

"Hedge fund star David Newton has ramped up his stake in Avingtrans from 1.77 million shares to 1.94 million @97p. Despite hard hits to share price in 2013 and 2014, analysts have begun lifting their forecasts with a target of 135-138p."

[dgwinterbottom] 27/8/2015 11:13

Interesting.......it certainly appears that 100p is a definite support level. One might also notice the rise yesterday & today, only small perhaps but given results are due in 4-6 weeks does this bode well!!!!!!

[rogerrail] 24/6/2015 12:55

DG

that was my understanding too , and Metalcraft have gone further than the other supplier to bring work into the area.

[dgwinterbottom] 24/6/2015 08:56

Roger - Further to your last post and the Unions being upset about steel boxes contracts not being placed with local firms. It was stated at the last AGM that there were few companies within the UK (of which Metalcraft was one)that had the capability to manufacture these items to the spec required, in that case hardly surprising they were not awarded locally.

[rogerrail] 12/6/2015 11:33

Interesting article on unions outrage that recent steel box contracts were not placed with local firms ie in Cumbria, althouch AVG have stated they will set up a local finishing facility. The interesting bit though is this from the union letter to local MPS :

"...The current two £50m contracts could grow to £2bn as Sellafield will require more than 30,000 metal boxes in the future"

[luckymouse] 18/5/2015 17:48

Das ist der boden

[rogerrail] 14/5/2015 11:54

I would not be surprised if we get a trading update sometime either side of the yr end May 31st. Since the half yr end Nov '14, there has been a string of positive news flow in relation to orders for Maloney, Stainless, Crown and Sigma, as well as development grant awards. I would think that the restructuring of these business has also largeley been completed except for no news of sale of the Maloney site. During this time the share price has not recovered from its sharp fall in November.

[srichardson8] 11/5/2015 11:59

thanks Roger very useful. it was aero that first attracted me. i will have a closer look again.

[rogerrail] 11/5/2015 11:34

srichardson,

I think if you went back and tried to make sense of the recent results, you would assign 100% of the share price value soley on the performance of the aerospace division. The energy and medical division has been a drag on the company for a number of years now, beginning with the investment in China and made worse by the acquisition of Exterran UK operations (now Maloney) which turned sour with the sharp fall in oil price. But subsequent to a reorganisation of Maloney , together with a turnaround in Crown and the much delayed ramp up in Siemens MRI volumes, the boom in nuclear could potentially result in this division trumping its hugely successful aerospace counterpart.

[rogerrail] 11/5/2015 11:02

hopefully this recent contract should be the tip of the iceberg, a shrewed move by the management to put the upfront investment in to target this sector. Some big contracts are being handed out and there will no doubt be potential for more spinoff work both in decommisioning and new plant build..

[srichardson8] 11/5/2015 09:07

I have looked at this share a few times but always decided against buying it. One big reason is the very poor returns as measured by operating margins and return on capital. Are they just stuck in some competitive, low profits businesses? Could anyone very simply elucidate why these measure are so low and if there is any chance of them improving over time?

[dgwinterbottom] 11/5/2015 07:27

Another good contract win.........