Date: Wednesday 11 Jul 2012
LONDON (ShareCast) - Avingtrans, a manufacturer of critical components and associated services to the medical, energy, industrial and global aerospace sectors, has reported that group sales for the year ended May 31st are expected to be 20 per cent ahead of the previous year, in line with market expectations, following growth in all divisions.
The company highlighted the overall improved performance in its Aerospace division. It is continuing to invest in the recently formed Sigma Composites business. While sales at Sigma Composites have been lower than expected, Avingtrans still reckons that the unit will contribute strongly to the Aerospace division in the future.
The company is in final negotiations with the European Union to participate in its "Clean Sky" programme to develop new technology for more environmentally sustainable aircraft, rotorcraft and propulsion systems.
The Industrial business experienced a solid year with strong results in Germany and the US. Recently, Jena Tec's automation division, Moss Group, received orders worth around £0.6m.
The performance of the Energy and Medical division has been held back by delays to the next generation MRI systems being developed by Siemens and, specifically in relation to the group's Crown business, on-going market weakness in the transport infrastructure sector.
The firm was keen to emphasise that the Siemens programme is progressing, albeit slower than anticipated and Crown is awaiting final confirmation of a new £200k contract for CCTV infrastructure on the M4/M5 Managed Motorway programme. In response to market weakness, Avingtrans has taken measures at Crown to manage costs to an absolute minimum.
Beyond these, the flow of work for the division from other key customers has been "satisfactory" and new project wins are in line with forecasts.
"Although market conditions continue to be challenging, buoyed by positive trends in the Aerospace sector, we remain confident overall in continuing to perform in line with market expectations," the firm said in a statement.
The update was taken well by the market on Wednesday, with shares trading 4.05% higher at 77p in the afternoon.
NR
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