Avingtrans PLC
18 December 2007
AVINGTRANS plc
Trading Update
Following the conclusion of the first half ended 30 November 2007 it is now
clear that the Board's earlier optimism for the full year to 31 May 2008 has
faltered. The state of the Group's orderbook earlier in the year underpinned the
Board's confidence that the Group's overall result for the year would be
sufficient to offset the disappointing performance within the aerospace division
which we have previously reported. The current state of the orderbook no longer
provides such underpinning. As a result the Directors expect that, whilst
profitable at the pre-tax level on a Group-wide basis, the Group's overall
performance for the full year to 31 May 2008 will fall significantly short of
our expectations.
With the help of an encouraging performance in the industrial division during
the first half of the financial year the Directors also expect to report a
pre-tax profit at the interim stage, albeit at a level which also falls short of
our previous expectation. On a more encouraging note, the Directors are
optimistic of an improved half on half performance during the remainder of the
current financial year on the back of a number of interesting opportunities
which are currently under consideration. The Directors expect to announce the
first half results in February 2008.
The problems within the aerospace division have already been highlighted to the
market. These relate to contractual terms on certain important supply contracts
at B&D yielding negative margins during the first half of the year on a material
part of the division's business. In recent weeks prices have been renegotiated
with the customer concerned. Whilst material improvements on future deliveries
have been achieved, no retrospective support has been agreed to. As a result the
aerospace division was loss making in the first half of the year. This contract
will end during the current financial year.
Board changes
After 5 years with the Group Steven Lawrence, Managing Director has decided to
leave the company by the end of May 2008. The Board is actively seeking a
replacement and has identified a potential candidate. Once negotiations are
completed a further announcement will be made.
Enquiries:
Avingtrans plc 01159 499 020
Ken Baker, Chairman
Stephen King, Finance Director
KBC Peel Hunt Ltd (Nominated Adviser & Broker) 020 7418 8900
Julian Blunt or David Anderson
This information is provided by RNS
The company news service from the London Stock Exchange