Business
Trading Statement
Trading Statement.
About this update from Avingtrans Plc
[{"type":"text","content":"\n Avingtrans PLC\n18 December 2007\n\n\n AVINGTRANS plc\n\n Trading Update\n\n\nFollowing the conclusion of the first half ended 30 November 2007 it is now\nclear that the Board's earlier optimism for the full year to 31 May 2008 has\nfaltered. The state of the Group's orderbook earlier in the year underpinned the\nBoard's confidence that the Group's overall result for the year would be\nsufficient to offset the disappointing performance within the aerospace division\nwhich we have previously reported. The current state of the orderbook no longer\nprovides such underpinning. As a result the Directors expect that, whilst\nprofitable at the pre-tax level on a Group-wide basis, the Group's overall\nperformance for the full year to 31 May 2008 will fall significantly short of\nour expectations.\n\nWith the help of an encouraging performance in the industrial division during\nthe first half of the financial year the Directors also expect to report a\npre-tax profit at the interim stage, albeit at a level which also falls short of\nour previous expectation. On a more encouraging note, the Directors are\noptimistic of an improved half on half performance during the remainder of the\ncurrent financial year on the back of a number of interesting opportunities\nwhich are currently under consideration. The Directors expect to announce the\nfirst half results in February 2008.\n\nThe problems within the aerospace division have already been highlighted to the\nmarket. These relate to contractual terms on certain important supply contracts\nat B&D yielding negative margins during the first half of the year on a material\npart of the division's business. In recent weeks prices have been renegotiated\nwith the customer concerned. Whilst material improvements on future deliveries\nhave been achieved, no retrospective support has been agreed to. As a result the\naerospace division was loss making in the first half of the year. This contract\nwill end during the current financial year.\n\nBoard changes\n\nAfter 5 years with the Group Steven Lawrence, Managing Director has decided to\nleave the company by the end of May 2008. The Board is actively seeking a\nreplacement and has identified a potential candidate. Once negotiations are\ncompleted a further announcement will be made.\n\n\nEnquiries:\n\nAvingtrans plc 01159 499 020\nKen Baker, Chai...