Avingtrans (LON:AVG) , the AIM listed manufacturing group, drove up sales by 25% to £16.9m in the six months to last November. The performance reinforced news from the company last month that it was on course to beat financial expectations this year. Avingtrans makes and supplies critical components and services for the medical, energy, industrial and global aerospace sectors. It credited the latest figures to a strong flow of new contracts with global original equipment manufacturers (OEMs) that are not dependent on the UK economy. The Avingtrans share price was up just short of 1% at 57.5p during the morning.

Gross profit margins during the first half of the year increased to 28.8% from 22.6% in the same period last year. Ebitda improved by 50% to £1.5m and gearing was down further to 34% - or £7.5m - from 36% in 2010. Pre-tax profits came in at £0.5m against a small loss in the first half of 2010 and against a £0.47m profit for the whole of 2010. The company said it was now anticipating being able to reinstate a final dividend for the full year.

Among the highlights during the period, Avingtrans’ Sigma China division, which manufacturers components for the aerospace industry, broke into profit. That was helped by the bedding in of long-term contracts with the likes of ITA, Eaton and Meggitt. Elsewhere, positive performances were put in by the group’s CH Precision Finishers, Stainless Metalcraft and Crown International divisions. Likewise, Jena Tec, which makes precision components, experienced strong first half demand in global orders and, post-period, won its largest single contract to date - worth £1.8m over three years.

Roger McDowell, the chairman of Avingtrans, said: “After an arduous period in the previous financial year, it is pleasing to report on an encouraging first half. Building on the improving position in the second half of last year, we have seen the majority of our markets regenerate positively. Improvements are down in part to global recovery, but also down to the hard work completed within our divisions on capability enhancements over the last 18 months. Recovery has been further assisted by long term contracts with global OEMs that are not dependent on the UK economy. Continued new contract wins support our faith in the group’s long term strategy and underline the reasons why the Board indicated to the…

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