Avingtrans ends year in line with raised market expectations
Energy, medical and industrial components and systems supplier Avingtrans said on Thursday that its results for the year ended 31 May were expected to be at least in line with market expectations, revised upwards following its interim results in February.
The AIM-traded company said its year-end net cash position was “strong”, standing at more than £23m compared to net debt of £7.4m at the end of the 2020 financial year.
Cash balances benefited from the successful sale of Peter Brotherhood in March, which resulted in net proceeds of £30.6m.
The group's current orderbook and prospect pipeline remained “robust”, the board said.
As it outlined in its interim results, the board confirmed the reinstatement of its progressive dividend policy on Thursday, following the dividend suspension in 2020 due to the Covid-19 pandemic.
It said a dividend would be recommended for the year ended 31 May, which would also include an amount to reflect the non-payment of an interim dividend.
The firm said it intended to reinstate more usual dividend payments in the current financial year, with an interim and full-year dividend split, subject to maintaining appropriate financial headroom and flexibility in light of any future acquisition opportunities.
“We are delighted with the strong performance of the group, which will report results for the year ended 31 May in line with the previously-upgraded market forecasts,” said chief executive officer Steve McQuillan.
“Net cash in the business remains healthy which was strengthened following the successful sale of the Peter Brotherhood business in March.”
McQuillan said the group was in a “very good position” to execute its ‘pinpoint-invest-exit’ strategy, with a “strong” pipeline of opportunities.
“The board remains confident on the outlook for the group, which is reflected in the reinstatement of the full-year dividend.”
Avingtrans said it would publish its results for the 12 months ended 31 May on 29 September.
At 1558 BST, shares in Avingtrans were down 0.59% at 418.51p.