Slide 1: Results for the year ended 31 May 2023
Pinpoint-Invest-Exit Results for the year ended 31 May 2023 Steve McQuillan, CEO Stephen King, CFO
Slide 2: Financial highlights
Financial highlights Group Revenue Gross Profit Margin Adjusted EBITDA £116.4m 32.9% £13.7m FY22: £99.1m FY22: 34.1% FY22: £12.4m Adjusted Diluted EPS Final Dividend* Net Cash** 23.4p 2.8p £13.0m FY22: 21.6p FY22: 2.6p 31 May 2022: £16.7m Final Dividend* - Currently proposed Net Cash** - impact of I
Slide 3: Our divisions and brands
Our divisions and brands Engineered Pumps and Process Solutions and Medical and Industrial Motors Rotating Equipment Imaging Acquired 2004 Acquired 2018 Acquired 2017 Acquired 2018 Acquired 2019 Acquired 2017 Acquired 2019 Acquired 2012 Acquired 2023 Acquired 2021 Acquired 2023 Revenue (£m) Adj. EBI
Slide 4: Strategy
Strategy Pinpoint Invest Exit • Focus on targeting highly • People • Return value to shareholders regulated markets. • Facilities and equipment • Fund new acquisitions • Grow existing businesses • Technology and IP • Fund research and through bolt-on acquisitions • Routes to market development of ne
Slide 5: Our proven strategy in action - Pinpoint
Our proven strategy in action - Pinpoint Strengthening the portfolio HEVAC & HES • Ormandy acquired the assets of HEVAC & HES for £852k • Complementary product ranges • Widens product portfolio – including aftermarket offering • Team in Elland have moved to Ormandy’s Bradford site • Site rationalisa
Slide 6: Our proven strategy in action - Invest
Our proven strategy in action - Invest Developing world class products • Magnetica - compact helium-free MRI systems • Current AVG shareholding is just under 75% • Adaptix – compact 3D X-ray systems • Following the acquisition*, AVG now owns 100% of Adaptix • Both businesses developing in parallel •
Slide 7: Our proven strategy in action - Exit
Our proven strategy in action - Exit Building and returning shareholder value PB acquired for c£9m as part of HTG in 2017 • Avingtrans is committed to profitable growth and to business Exit of PB for enterprise value of £35m in March 2021 exits at advantageous valuations. Gross return on original ca
Slide 8: Adaptix acquisition rationale
Adaptix acquisition rationale Pinpoint Invest Exit Funding issues: Priorities: Several possible exit routes: Market funding issues (SVB, etc) • Build manufacturing capability in • AIM or NASDAQ IPO in 2+ years Cap table broken – 80% could not Scottish facility and (potentially) • Trade sale – la
Slide 9: Slack and Parr acquisition rationale
Slack and Parr acquisition rationale Pinpoint Invest Exit • Early view of the opportunity via Priorities: Several possible exit routes: our network and reputation • Right-sized UK manufacturing site • Competitor consolidation at a • Use of well proven deal structure • Inject working capital to unloc
Slide 10: Divisional priorities - EPM
Divisional priorities - EPM Hayward Tyler and Energy Steel • Markets • Nuclear – on-going life extension focus • Multiple contract wins in USA & “life extension” market • Next Generation nuclear – further TerraPower orders • Hydrocarbons – North Sea upgrade orders continuing • New product to capture
Slide 11: Divisional priorities - PSRE
Divisional priorities - PSRE Metalcraft, Ormandy, Booth, Composite Products • Markets • Nuclear decommissioning (Metalcraft) • Sellafield – phase 2 of 3M3 box contact ongoing • Magnox – new contract awards post period end • Defence (Booth) – UK Government contracts extended • Infrastructure (Booth)
Slide 12: Divisional priorities - MII
Divisional priorities - MII MRI: axial, human knee Magnetica, Scientific Magnetics. Tecmag Adaptix (acquired 100%, post period end) • Medical and veterinary Imaging • Convergent orthopaedic and veterinary focus X-ray: lizard leg • Initial addressable medical market estimate $3Bn • Medical market: “p
Slide 13: Financial Highlights
MD. Avingtrans Financial Highlights 13
Slide 14: Financial performance
Financial performance £m FY23 FY22 Revenue 116.4 99.1 Gross Profit 38.3 33.8 Gross Profit % 32.9% 34.1% Adjusted EBITDA 13.7 12.4 Adjusted EBITDA % 11.8% 12.5% Adjusted Profit before tax 9.0 8.1 Adjusted Profit after tax 7.8 7.1 Adj. Diluted EPS (pence) 23.4 21.6 14
Slide 15: Divisional Results
Divisional Results Energy Energy £m EPM PSRE Medical Central FY23 EPM PSRE Medical Central FY22 Revenue: OE 21.4 45.4 3.6 - 70.4 16.2 38.3 2.4 - 56.9 AM 43.2 2.8 0.0 - 46.0 39.9 2.2 0.0 - 42.2 Total Revenue 64.6 48.2 3.6 - 116.4 56.1 40.5 2.5 - 99.1 Operating profit/(loss) 5.6 4.6 (1.0) (1.2) 8.0 5.
Slide 16: Balance Sheet
Balance Sheet FY23 FY22 £’m £’m Tangible fixed assets 23.6 25.2 Goodwill 21.6 21.4 Investments 8.0 4.0 Other intangible 18.8 15.7 Deferred tax asset & pension surplus 1.2 3.2 Working capital (incl. held-for-sale assets) 31.7 30.5 Provisions (1.3) (1.8) Tax liability (0.7) (0.0) Net cash 9.1 13.3 Cre
Slide 17: Movement in net cash (£'m)
Movement in net cash (£’m) Energy divisions Medical division Central & discontinued 30.0 15.5 (2.4) (3.9) 25.0 (0.9) (0.7) (0.4) (4.8) 20.0 (4.0) 15.0 13.3 (1.0) £m 2023 2022 (2.3) 10.0 0.7 9.1 Net cash 9.1 13.3 Impact of IFRS 16 3.9 3.4 5.0 Net cash (excl. IFRS 16) 13.0 16.7 - 2022 Adjusted Net Wor
Slide 18: Dividend growth (pence per share)
Dividend growth (pence per share) Suspended due to Covid-19 2.8 2.6 2.4 2.3 2.2 2.1 2.0 4.0 1.8 1.5 1.6 1.7 1.2 1.3 1.4 1.0 0.9 1.0 1.1 0.7 - FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Interim Full year 18
Slide 19: Summary
MD. Avingtrans Summary 19
Slide 20: Summary
Summary Delivered full year expectations - despite supply chain issues Results robust, in particular at Hayward Tyler, Energy Steel and Booth Order book: best order cover position since before the pandemic Nuclear sector contract wins in the UK, EU and USA, Sellafield 3M3 box project – pha
Slide 21: Appendix
MD. Avingtrans Appendix 21
Slide 22: Our locations and employees (26 September 2023)
Our locations and employees (26 September 2023) UK 691 China USA 174 India 62 11 Australia 30 22
Slide 23: Our values
/ Avingtrans Our values A High Performance Business Integrity Quality Agility We mean what we say and do what we say we Right first time, on time. Our products and We adapt rapidly and cost effectively - in will do, with respect for all concerned services have enduring value to our customers respons
Slide 24: Environment, Social and Governance (ESG)
Environment, Social and Governance (ESG) • Our goal is to ensure sustainability is embedded into our pinpoint-invest-exit business strategy. Our approach to sustainability is aligned with the UN’s Sustainable Development Goals (SDGs). We consider the following to be our priorities: Development of ne
Slide 25: Market capitalisation progression (£m)
Market capitalisation progression (£m) Exited JenaTec; Purchased Aerotech & PFW 2013 32 Purchased Maloney 2014 45 Oil Price Shock Purchased RMDG 2015 31 Purchased Rolls Royce pipes; Exited Sigma 2016 50 Returned £19m to shareholders; Purchased SciMag & Whiteley Read 2017 43 19 Purchased HTG & Ormand
Slide 26: Sustainability: progress
Sustainability: progress Feb Jan 2019 2020 SCR Pump ISO 14001 May Our Hayward Tyler Jan Oct Environmental 2022 May business secures its 2021 2021 Management Carbon tracking 2023 first order for SCR Acquisition of Green Factory Our Kunshan site gains All sites across the Net Zero pumps which removes
Slide 27: Share performance
Share performance Our share price has beaten the market over the past 5 years (growth %) 120% 100% 80% AVINGTRANS 60% 40% 20% 0% -20% FTSE AIM ALL-SHARE -40% 27
Slide 28: Blue chip partnerships
Blue chip partnerships /o. Avingtrans | S2 VATTENFALL @ R € SS ink @Q Seliafield td GPEDFENERGY & Prergy™ ba EUREKA Rapiscarr LAING O'ROURKE Ss e TerraPower were ern Shinhoo Eiges @EO PUMPS & MOTOR Ge fH KARA
Slide 29: Diversified end markets
Diversified end markets Revenue split by region (FY23) Revenue split by industry (FY23) Americas Africa & Pollution Other (excl. US) Middle East reduction 2% Industrial 4% 2% Oil & Gas (incl. Europe 3% 8% transport & 6% Conventional gov.) Asia power 42% (excl.China) 18% 8% UK 46% China 9% USA Nuclea
Slide 30: M&A – successful exits
M&A – successful exits Brand Acquisitions Bought for £m1 Sold for £m1 JRT Ltd JenaTec Inc 4.0 14.5 JGWT GMBH Boneham & Turner (FY02 - FY09) (FY13) Moss Group Sigma Components B&D Patterns C&H Composites Eng Group 22.0 65.0 Aerotech Tubes PFW Farnborough (FY07 - FY16) (FY16) RMDG Rolls Royce Nuneaton
Slide 31: Largest investors
Largest investors Ordinary shares of 5p each Number of % of total shares (000s) shares Harwood Capital 4,034 12.3% Funds managed by Business Growth Fund 2,363 7.2% Funds managed by Unicorn Asset Management Ltd 1,946 5.9% Funds managed by JTC Employer Solutions Trustee Ltd 1,703 5.2% R S McDowell’s P