Slide 1: Results for the year ended 31 May 2024
Pinpoint-Invest-Exit Results for the year ended 31 May 2024 Steve McQuillan, CEO Stephen King, CFO
Slide 2: Financial highlights
Financial highlights Group Revenue Gross Profit Margin Adjusted EBITDA £136.6m 32.2% £14.0m FY23: £116.4m FY23: 32.9% FY23: £13.7m Net Debt** Adjusted Diluted EPS Final Dividend* 18.5p 4.7p £6.1m 31 May 23: Net cash FY23: 23.4p FY23: 4.5p £13.0m Final Dividend* - Currently proposed Net Debt** - impa
Slide 3: Our divisions and brands
Our divisions and brands In June 2023, the Group consolidated its Engineered Pumps and Motors (EPM) and its Process Solutions and Rotating Equipment (PSRE) divisions into a single division, Advanced Engineering Systems (AES). Advanced Engineering Systems (AES) Medical and Industrial Imaging (MII) Ac
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 A Gear Metering Pump • The Group acquired the S&P assets for £4.1m in August 2023 • Specialist gear metering pumps complement HT product range • Extends product portfolio – including aftermarket offering • Modern, well-invested lea
Slide 6: Our proven strategy in action - Invest
Our proven strategy in action - Invest Developing world class products Vet dental 3D Xray scan • Adaptix remaining shares acquired for £7.2m, incl. debt • Adaptix – makes compact 3D X-ray systems • Magnetica – makes compact helium-free MRI systems • Initial markets are orthopaedic, veterinary and ND
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 • Exit of PB for enterprise value of £35m in March 2021 • Gross return on original capital investment almost 4X • 3rd successful exit for Avingtrans since 2013 • Avingtrans is
Slide 8: Divisional priorities - AES
Divisional priorities - AES Advanced Engineering Systems (AES) division • created by combining the former EPM and PSRE divisions Hayward Tyler, Slack & Parr, Energy Steel • Markets • Nuclear – on-going life extension focus • Further contract wins in USA and EU “life extension” market • Next Generati
Slide 9: Divisional priorities – AES (cont.)
Divisional priorities – AES (cont.) Metalcraft, Ormandy, Booth, Composite Products Ormandy AquaModule • Markets • Nuclear decommissioning (Metalcraft) • 3M3 box contact ongoing. £14.5m of new orders won • Defence (Booth) – on-going work on UK Government contracts • Infrastructure (Booth) – £36m HS2
Slide 10: Divisional priorities - MII
Divisional priorities - MII Magnetica, Scientific Magnetics, Tecmag and Adaptix MRI scanner • Medical and Veterinary Imaging • Acquisition of remaining shares in Adaptix for £7.2m, including debt • Convergent orthopaedic / veterinary market focus • Total addressable imaging market estimate is now $7
Slide 11: Financial Highlights
hs. Avingtrans Financial Highlights 11
Slide 12: Financial performance
Financial performance £m FY24 FY23 Revenue 136.6 116.4 Revenue LFL* 126.3 116.4 Gross Profit 44.0 38.3 Gross Profit LFL* 41.1 38.3 Gross Profit % 32.2% 32.9% Gross Profit % LFL 32.5% 32.9% Adjusted EBITDA 14.0 13.7 Adjusted EBITDA LFL* 16.5 13.7 Adjusted EBITDA % 10.3% 11.8% Adjusted EBITDA % LFL* 1
Slide 13: Divisional Results
Divisional Results AES MII Central FY24 AES MII Central FY23 £’m £’m £’m £’m £’m £’m £’m £’m Revenue: Original equipment 81.0 3.3 - 84.4 66.8 3.6 - 70.4 Aftermarket 51.9 0.4 - 52.2 46.0 (0.0) - 46.0 Total Revenue 132.9 3.7 - 136.6 112.8 3.6 - 116.4 Operating profit/(loss) 11.0 (4.0) (1.3) 5.6 10.1 (
Slide 14: Balance Sheet
Balance Sheet FY24 FY23 £’m £’m Tangible fixed assets 29.6 23.6 Goodwill 27.9 21.6 Investments - 8.0 Other intangibles 33.6 18.8 Deferred tax asset & pension surplus 3.8 1.2 Working capital 38.9 31.7 Provisions (1.8) (1.3) Tax liability 0.1 (0.7) Net (debt)/cash (11.8) 9.1 Creditors > 1 year (0.3) (
Slide 15: Movement in net cash/(debt) (£'m)
Movement in net cash/(debt) (£’m) Advanced Engineering Systems Medical & Industrial Imaging Central 17.2 (7.0) £’m 31 May 31 May 2024 2023 (4.5) Net (debt)/cash excl. IFRS 16 leases (6.1) 13.0 IFRS 16 leases (5.8) (3.9) (5.3) Net (debt)/cash (11.8) 9.1 0.3 (0.3) (4.5) (11.7) 9.1 (1.0) (11.8) (4.1) 1
Slide 16: Dividend growth (pence per share)
Dividend growth (pence per share) Suspended due to Covid 2.9 2.8 2.6 2.4 2.3 2.2 2.1 2.0 4.0 1.8 1.6 1.7 1.8 1.2 1.3 1.4 0.9 1.0 1.1 - FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Interim Final 16
Slide 17: Summary
hs. Avingtrans Summary 17
Slide 18: Summary
Summary ✓ Delivered full year expectations - despite some on-going supply chain issues ✓ Results improving, in particular at Hayward Tyler, Booth and Ormandy ✓ Order book: best order cover position since before the pandemic (no “destocking”, as make to order) ✓ Nuclear sector contract wins in the UK
Slide 19: Appendix
hs. Avingtrans Appendix 19
Slide 20: Our locations and employees (24 September 2024)
Our locations and employees (24 September 2024) UK 697 China USA 174 India 82 11 Australia 35 20
Slide 21: Our values
h Avingtrans v Integrity We mean what we say and will do, with re: ‘t for all Ri * Quality ht first time, on time. Our produc and comers Agility ot rapidly and cost effectiv jonse to changes in the e: viro
Slide 22: 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 23: 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 24: Market capitalisation progression (£m)
Market capitalisation progression (£m) Purchased Rolls Royce pipes; Exited Sigma 2015 31 Returned £19m to shareholders; Purchased SciMag & Whiteley Read 2016 50 Purchased HTG & Ormandy Group assets 2017 43 19 Purchased Tecmag; Exited Whiteley Read 2018 67 Purchased Booth & Energy Steel 2019 71 CV-19
Slide 25: Share price performance
Share price performance Our share price has beaten the market over the last 5 years (growth %) 100% 80% 60% Avingtrans plc, up 63% 40% 20% 0% FTSE AIM All-share, down 12% -20% -40% 25
Slide 26: Blue chip partnerships
Blue chip partnerships MD. Avingtrans | S2 VATTENFALL @ € @Q Sellafield td | PEDFENERGY TerraPower ea Shinhoo Ge fT PUMPS & MOTOR z= _ 2 Energy EUREKA china ou india japan korea russia usa Rapiscan systems An OSI Systems Company
Slide 27: Diversified end markets
Diversified end markets Revenue split by region (FY24) Revenue split by industry (FY24) Pollution Other Africa & Americas reduction 2% Middle East (excl. US) 2% 3% Oil & Gas Asia Pacific 4% 6% (excl.China) Industrial (incl. 5% transport & gov.) Europe (excl. UK) 46% 5% United Conventional Kingdom po
Slide 28: 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 29: Largest investors
Largest investors Ordinary shares of 5p each Number of % of total shares (000s) shares Harwood Capital 4,036 12.2% Funds managed by Business Growth Fund 2,363 7.1% Funds managed by Unicorn Asset Management Ltd 1,946 5.9% Funds managed by JTC Employer Solutions Trustee Ltd 1,703 5.2% Funds managed by