Results for 6 months ended 30 November 2024
Steve McQuillan, CEO
Stephen King, CFO
Financial highlights
Group RevenueGross Profit Margin
£79.0m | 30.0% |
FY24 1H: £65.2m | FY24 1H: 31.6% |
Adjusted Diluted EPS Interim Dividend*
12.0p | 1.9p |
FY24 1H: 11.7p | FY24 1H: 1.8p |
- Interim Dividend - Currently proposed
- Net Debt impact of IFRS 16 removed
Adjusted EBITDA
£8.7m
FY24 1H: £7.3m
Net Debt**
£8.9m
31 May 2024:
Net debt £6.1m
2
Our divisions and brands
Advanced Engineering Systems (AES)
Medical and Industrial Imaging (MII)
2017 | 2019 | 2004 | 2012 |
2023 | 2019 | 2018 |
Revenue (£m) | Adjusted EBITDA (£m) |
76.8 | 11.0 |
63.7 | 8.5 |
FY24 H1 | FY25 H1 | FY24 H1 | FY25 H1 |
2017
2021
Revenue (£m)
2.2
1.5
FY24 H1 | FY25 H1 |
2018
2023
Adjusted EBITDA (£m)
(0.6)
(1.7) | ||
FY24 H1 | FY25 H1 | 3 |
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 new products |
4
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
- S&P manufacture specialist gear metering pumps
- Extends product portfolio - including aftermarket offering
- Modern, well-invested leased site in Kegworth, UK
- Additional service and support centres in the USA and China
- Supply chain fully stabilised after administration process
- Recovery continues, new products being launched
5
Our proven strategy in action - Invest
Developing world class products
• Adaptix - making compact 3D X-ray systems | Vet dental 3D Xray scan |
• Magnetica - making compact helium-free MRI systems | |
• Initial markets are orthopaedic, veterinary and NDT* | |
• High-quality product images commended by customers | |
• Multiple distributors appointed by Adaptix, mainly in the UK and USA | |
• Magnetica continues to prepare for US FDA 510(k) submission | Coronal wrist MRI scan |
- Adaptix: Scottish facility now fully up and running. Yield increasing.
- Magnetica: scaling up for production in new premises in Australia and USA
* NDT = Non-Destructive-Testing | 6 |
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 committed to profitable growth and to business exits at advantageous valuations.
-
Proceeds can either be returned to shareholders,
or redeployed for continued growth in shareholder value. - Energy markets continue to be robust and M&A activity remains strong in this sector.
- We are confident about the current strategic direction and potential future Exit opportunities.
7
Divisional priorities - AES
Advanced Engineering Systems (AES) division
Hayward Tyler, Slack & Parr, Energy Steel
- Markets
- Nuclear - on-going life extension focus
- Further contract wins in USA and EU "life extension" market
- Next Generation - TerraPower contract advancing to plan
- In discussion with other Small Modular Reactor (SMR) players
- Hydrocarbons - oil and gas orders still solid
- Chinese Market continues to expand strongly
- Focus on aftermarket. Targeting 3rd party products
- Defence - further Government contracts won at HT Luton
- Fibres - S&P customers stable and new prospects are being cultivated
- Facilities
- Optimising use of HT sites
- Sale process for Luton site has been paused for now
TerraPower technician with
HT molten salt pump
8
Divisional priorities - AES (cont.)
Metalcraft, Ormandy, Booth, Composite Products
Ormandy | |
• Markets | AquaModule |
- Nuclear decommissioning (Metalcraft)
- 3M3 box contact continuing to build production volumes
- Defence (Booth) - on-going work on UK Government contracts
- Infrastructure (Booth) - £36m HS2 contract proceeding to plan, plus additional £4.5m contract won, post period end
- HVAC1 (Ormandy) - record order book with increased aftermarket sales
- Recorded best results since acquisition. HEVAC/HES fully integrated
- Composites - focus on industrial customers, like Rapiscan
- Facilities - Metalcraft unit for NRS2 (formerly Magnox) contract progressing well
- Products - range expansion at Booth and Ormandy. Nuclear focus at Metalcraft
1 | - HVAC = Heating, Ventilation and Air Conditioning | 9 |
2 | - NRS = Nuclear Restoration Services |
Divisional priorities - MII
Magnetica, Scientific Magnetics, Tecmag and Adaptix
- Medical and Veterinary Imaging
- Convergent orthopaedic / veterinary market focus
- Total addressable imaging market estimate is circa $7bn
- Further investments in Magnetica (MRI) and Adaptix (3D X-ray)
- Multiple distributors being appointed in the UK and internationally
- New product concept for ViewRay underway
- NMR - steady progress on Tecmag spectrometer sales and service
- Science - niche magnet & cryogenic product sales continuing to build
- Facilities
- Magnetica and Tecmag scaling-up production in new premises
- Adaptix: factory in Scotland fully up and running. Yield improving.
- Products
- MRI system: now anticipating 510(k) FDA approval in H2 2025.
- Adaptix marketing orthopaedic and vet products, building volume
- Adaptix also had further sales for non-destructive testing (NDT) product
3D X-ray scanner
10