Slide 1: Results for 6 months ended 30 November 2023
Pinpoint-Invest-Exit Results for 6 months ended 30 November 2023 Steve McQuillan, CEO Stephen King, CFO
Slide 2: Financial highlights
Financial highlights Group Revenue Gross Profit Margin Adjusted EBITDA £65.2m 31.6% £7.3m FY23 1H: £50.0m FY23 1H: 32.6% FY23 1H: £6.4m Net Debt** Adjusted Diluted EPS Interim Dividend* 11.7p 1.8p £2.2m 31 May 2023: FY23 1H: 10.8p FY23 1H: 1.7p Net cash £13.0m * Interim Dividend - Currently proposed
Slide 3: Our divisions and brands
Our divisions and brands In the period, we consolidated our Engineered Pumps and Motors (EPM) and our Process Solutions and Rotating Equipment (PSRE) divisions into a single division, Advanced Engineering Systems (AES). Advanced Engineering Systems (AES) Medical and Industrial Imaging (MII) 2004 201
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 Pump • The Group acquired the assets of Slack & Parr for £4.1m • Specialist gear pumps complement HT product range • Extends product portfolio – including aftermarket offering • Modern, well-invested leased site in Kegworth,
Slide 6: Our proven strategy in action - Invest
Our proven strategy in action - Invest Developing world class products • Magnetica - compact helium-free MRI systems RSNA Imaging Conference, Chicago • Adaptix – compact 3D X-ray systems • Magnetica appointed its first US distributor • Adaptix remaining shares acquired for £7.2m, incl. debt • Initia
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 committe
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 and Parr, Energy Steel • Markets • Nuclear – on-going life extension focus • Further contract wins in USA and EU “life extension” market • Next Genera
Slide 9: Divisional priorities – AES (cont.)
Divisional priorities – AES (cont.) Metalcraft, Ormandy, Booth, Composite Products Ormandy AquaModule • Markets • Nuclear decommissioning (Metalcraft) • 3M3 box contact progressing. £14.5m of new orders won • Defence (Booth) – UK Government contracts extended • Infrastructure (Booth) – £36m HS2 cont
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 • Addressable imaging market estimate now over $7bn •
Slide 11: Financial Highlights
Ds. Avingtrans Financial Highlights 11
Slide 12: Financial performance
Financial performance £m FY24 1H FY23 1H FY23 Revenue 65.2 50.0 116.4 Revenue LFL* 62.0 50.0 116.4 Gross Profit 20.6 16.3 38.3 Gross Profit LFL* 19.9 16.3 38.3 Gross Profit % 31.6% 32.6% 32.9% Gross Profit % LFL* 32.1% 32.6% 32.9% Adjusted EBITDA 7.3 6.4 13.7 Adjusted EBITDA – LFL* 8.3 6.4 13.7 Adju
Slide 13: Divisional Results
Divisional Results AES MII Central FY24 1H AES MII Central FY23 1H £’m £’m £’m £’m £’m £’m £’m £’m Revenue: Original equipment 40.7 1.3 - 42.0 29.9 1.5 - 31.4 Aftermarket 23.1 0.2 - 23.2 18.6 0.0 - 18.6 Total Revenue 63.7 1.5 - 65.2 48.5 1.5 - 50.0 Operating profit/(loss) 5.5 (1.1) (0.8) 3.6 4.5 (0.
Slide 14: Balance Sheet
Balance Sheet FY24 1H FY23 1H FY23 £’m £’m £’m Tangible fixed assets 28.5 23.2 23.6 Goodwill 28.5 21.2 21.6 Investments - 4.0 8.0 Other intangibles 28.9 16.2 18.8 Deferred tax asset & pension surplus 1.5 3.6 1.2 Working capital 39.2 33.6 31.7 Provisions (1.2) (1.7) (1.3) Tax liability 0.4 (0.7) (0.7
Slide 15: Movement in net cash (£'m)
Movement in net cash (£’m) Advanced Engineering Systems Medical & Industrial Imaging Central 20.0 8.5 (5.6) 30 Nov. 31 May 2023 2023 15.0 Net (debt) / cash excl. (2.2) 13.0 IFRS 16 Leases (0.9) (6.3) IFRS 16 leases (5.6) (3.9) 10.0 Net cash (debt) / (7.8) 9.1 cash 0.4 (0.2) (1.7) 5.0 9.1 (7.4) 0.0 (
Slide 16: 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 1.6 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
Summary ✓ H1 FY24 - on target to deliver 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 con
Slide 18: Appendix 1: Imaging Update
Ds. Avingtrans Appendix 1 Imaging Update 18
Slide 19: Adaptix Update
Adaptix Update Y Stabilised company post-acquisition v Refocussed business around 3 products: NDE, Vet, Ortho v Changed business plan toward a capital sales model v¥ Commercialised Vet & NDE v Received first orders on new purchase model Avingtrans provides stability and long-term support v Distribut
Slide 20: Allowing us to build a meaningful business
Allowing us to build a meaningful business Large Total Addressable Market Cumulative TAM 4 een Portable Chest $4.5bn on Orthopedic Dental $3.2bn Intra-oral $5.5bn Veterinary $2.8bn NDE $2.2bn $2.2bn $1.4bn 20
Slide 21: Update - NDE
Update NDE v Featured in the UK Government Advanced Manufacturing Plan v Substantially progressed the products * Improved imaging capability v Approved under HSE’s new rules v Repeat business from Aerospace sector v Aerospace prime ‘excited about Adaptix NDE’ What our users say... oe AzegoTSLTD, a l
Slide 22: Update - VET
Update VET te v Major hardware upgrade to system v Major software updates aiding u v First commercial sale under capital mode v Evaluation units at several major corpora veterinary groups 66 | have only been using the Adaptix machine for two weeks but it has already exceeded my expectations. The ima
Slide 23: Setting up manufacturing
v Setting up manuf. * Robust supply v Potential dema v USdistributor in place © wish all my clinics had one of these. 9? Radiologist serving communities in Alabama acturing line at Scotla the product © | havea long-held vision of a different way of handling radiography in frontline clinics; patient
Slide 24: Magnetica Update
Reimagine the way you experience MRI Magnetica is redefining magnetic resonance imaging technologies. ] We are innovating to deliver application-specific MRI solutions. Our specialties include compact superconducting MRI systems and MRI sub-systems. MAGNETICA UPDATE 24
Slide 25: T = Tesla, the unit of magnetic field strength
T = Tesla, the unit of magnetic field strength 25
Slide 26: Use Cases
USE CASES Initial and future market applications DEDICATED IMAGING DEDICATED IMAGING APPLICATIONS: AUDIGAAL APPLICATIONS: OTHER MRI MODALITY BREAST VETERINARY: 18% SMALL COMPANION MARKET SHARE M MUSCULOSKELETAL ANIMAL EXTREMITY NEO-NATAL INDUSTRIAL: NEURO / HEAD MATERIALS PROCESSING PROSTATE WORTH U
Slide 27: Clinical Stakeholder Benefits Magnetica
CLINICAL STAKEHOLDER BENEFITS MAGNETICA — MA MSK 3T: MRI REIMAGINED Improves clinic efficiency when deployed to complement existing whole-body MRI systems Delivers enhanced/superior image quality to clinicians for optimal diagnostic outcomes Transfers MSK workload from Provides improved MSK imaging
Slide 28: IP Portfolio
IP PORTFOLIO Magnetica’s strong IP Portfolio Magnetica Ltd has a growing IP (intellectual property) portfolio of patents and trade secrets. As an industry disruptor, Magnetica has transformed many technologies, leading to the current and evolving product range. Continued advancement is augmented by
Slide 29: Primed for US Market Entry
PRIMED FOR US MARKET ENTRY 2024 FDA application and beyond MAGNETICA As we head toward the final stages of preparation for US market entry, Magnetica has been focused on key activities, to prime the market for our launch. :* Marketing Strengthening brand awareness, Capturing and qualifying leads US
Slide 30: Appendix 2: Background Info
Appendix 2 Background Info 30
Slide 31: Our locations and employees (31 December 2023)
Our locations and employees (31 December 2023) UK 693 China USA 176 India 63 11 Australia 30 31
Slide 32: 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 33: 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 34: 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 35: Share performance
Share performance AVINGTRANS FTSE AIM ALL-SHARE 35
Slide 36: 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 37: Blue chip client partnerships
Blue chip client partnerships 37
Slide 38: Diversified end markets (AES)
Diversified end markets (AES) Revenue split by country (FY24 1H) Revenue split by industry (FY24 1H) Africa & Americas Middle Pollution Other (excl. reduction 1% Asia Pacific East USA) 2% Industrial (excl. 3% Oil & Gas China) (incl. 6% transport & Europe gov.) (excl. UK) 46% 6% Conventional UK power
Slide 39: 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 40: 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