REG - Avingtrans PLC - Trading Update & Possible Acquisition of Adaptix

AvingtransAnnouncement

13/07/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230713:nRSM8600Fa&default-theme=true

RNS Number : 8600F  Avingtrans PLC  13 July 2023

13 July 2023

Avingtrans Plc

 

("Avingtrans" or the "Group")

 

Possible Acquisition of Adaptix, Trading Update & Notice of Results

 

Avingtrans plc (AIM: AVG), the engineering technology group, announces a
trading update in respect of the financial year ended 31 May 2023. The Board
is pleased to report that the results for the year ended 31 May 2023 are
expected to be in line with market expectations*. The momentum from FY23 has
continued into FY24 and the current order book has continued to strengthen
leaving us with a record order book for this time of year.

 

The Group is also pleased to announce that it has secured a number of positive
contract wins throughout the period, notably in the nuclear sector, several of
which have been set out below.

 

Hayward Tyler Luton has secured a £3.3m follow-on order, for Forsmark nuclear
power station in Sweden to support the life extension programme there. This
follow-on order is expected to be delivered in the next 18 months and comes
after the initial £10m order in 2019, which was completed in 2022.

 

A £1.6m order for Hayward Tyler Luton from a Polish nuclear power station,
owned by the energy group Enea, also for a life extension programme.

 

A $2.5m order for Hayward Tyler in Vermont from KHNP, ordered via Doosan in
South Korea, to support upgrades in relation to nuclear regulatory
requirements.

 

Energy Steel in Michigan received its first order from TerraPower, for
equipment worth $1m. TerraPower is a next generation nuclear power company,
backed by Bill Gates, which is now building a demonstrator plant.

 

Possible Acquisition of Adaptix

 

Avingtrans announces that it has submitted a proposal in connection with the
conditional acquisition of the remaining issued share capital and to be issued
share capital of Adaptix Ltd ("Adaptix") (the "Proposal"), the emerging
MedTech business based in Oxford, for a total consideration of up to £3.0m
(being up to 100 pence per ordinary share) (the "Consideration").

 

The Proposal has been accepted by the majority of Adaptix shareholders on a
conditional basis with Adaptix (in accordance with its obligations under its
Articles) inviting various other parties to submit a competing proposal for
the entire business, or its assets, by 21(st) July. Should no superior
competing offer be received at that point, then the Proposal will be accepted
and completion of the acquisition would be subject to the satisfaction of
certain conditions.

 

Should the Proposal be accepted, the Consideration is to be satisfied entirely
through the issue of Avingtrans shares, to be issued following the completion
of the acquisition.

 

There can be no certainty that the Proposal will be accepted, even if the
pre-conditions are satisfied or waived, or a superior offer for Adaptix
emerges. In addition, Avingtrans has the ability to withdraw its offer at any
time up to exchange of contracts, since the offer remains subject to the
approval of the Avingtrans Board.

 

Background to Adaptix

 

Since the Group first completed a minority investment in October 2021, Adaptix
has made successful progress towards its 3D X-ray technology, with over 28
patent families and over 300 patents filed to date. Most recently, Adaptix was
awarded 510k clearance for its novel orthopaedic product by the US FDA in
March 2023. The Board believes that the potential acquisition will give the
Group a market leading position in novel imaging products, as applied to (eg)
veterinary and orthopaedic imaging at the point of care, notably when
considered in parallel with the Group's existing interest in novel MRI
products, via Magnetica.

 

Avingtrans currently owns 667, 333 ordinary shares in Adaptix. The total
issued share capital of Adaptix is currently 3,708, 044 ordinary shares.

 

Avingtrans will make further announcements in due course, as appropriate.

 

Notice of Results

 

Avingtrans expects to publish its results for the twelve months ended 31 May
2023 on Wednesday 27 September 2023.

 

The management team will be hosting a presentation for analysts on the day of
results - for more information please contact Zach Cohen at IFC Advisory on
zach.cohen@investor-focus.co.uk (mailto:zach.cohen@investor-focus.co.uk)

 

 

Steve McQuillan, CEO of Avingtrans, commented:

 

"We are delighted by the performance of the Group in what have been difficult
market conditions, including on-going supply chain disruptions, albeit that
these have eased somewhat from their nadir. Despite the headwinds, order
intake has been robust, notably growth in Engineered Pumps and Motors (EPM)
has been particularly strong. As a result, we are pleased that the Group is
entering FY24 with the best order cover since prior to the pandemic which
leads the Board to view the outlook for this year with confidence."

 

*Consensus FY23 Revenue, Adjusted EBITDA & Net Cash of £108.9m, £13.5m
& £13.6m respectively

 

 

Enquiries:

 

 Avingtrans plc                                          01354 692391

 Les Thomas, Interim Chairman

 Steve McQuillan, Chief Executive Officer

 Stephen King, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser and Broker)   02074 963000

 Shaun Dobson

 Alex Bond

 Oliver Platts

 IFC Advisory (Financial PR)                             020 3934 6630

 Graham Herring

 Tim Metcalfe

 Zach Cohen

 

About Avingtrans plc:

 

Avingtrans designs, manufactures and supplies original equipment, systems and
associated aftermarket services to the energy, medical and industrial markets
worldwide.

 

Business units

 

 Hayward Tyler - Luton & East Kilbride, UK and USA, China and India

 Specialises in the design, manufacture and servicing of performance-critical
 motors and pumps for challenging environments.

 Energy Steel, Inc - Rochester Hills, Michigan, USA

 Energy Steel, part of the Engineered Pumps and Motors Division of
 Avingtrans plc, has been serving the nuclear power industry since 1982 with
 capabilities in equipment fabrication, material supply, precision machining,
 engineering, and repair services. Through strategic OEM partnerships, it also
 provides solutions for obsolete nuclear components and support for the most
 complex projects.

 Stainless Metalcraft Ltd - Chatteris, UK and Chengdu, China

 Provider of safety-critical equipment for the energy, medical, science and
 research communities, worldwide, specialising in precision pressure and vacuum
 vessels and associated fabrications, sub-assemblies and systems.

 Booth Industries - Bolton, UK

 Designs, manufactures, installs and services doors and walls which can be
 tailored to be: blast & explosion proof; fireproof; acoustically shielded;
 high security/safety; or combinations of the above

 Ormandy Group, Bradford, UK

 Design, manufactures and servicing of off-site plant, heat exchangers and
 other HVAC (heating, ventilation and air conditioning) products

 Composite Products Ltd - Buckingham, UK

 Centre for composite technology, parts and assemblies, serving customers in
 industrial markets.

 Magnetica Ltd - Brisbane, Australia

 Magnetica Limited specialises in the development of next generation MRI
 technologies, including dedicated extremity MRI systems and MRI system
 components. Magnetica has successfully built and tested a compact, integrated
 3 Tesla orthopaedic MRI system, demonstrating clinical-quality imaging.
 Commercialisation of this system (and others) is on-going. Magnetica's
 structure now includes two other business units:

 Scientific Magnetics - Abingdon, UK

 Designs and manufactures superconducting magnet systems and associated
 cryogenics for a variety of markets including MRI and provides services for
 Nuclear Magnetic Resonance instruments.

 Tecmag Inc, Houston, USA

 Designs, manufactures and installs instrumentation, including consoles, system
 upgrades, and probes, mainly for Magnetic Resonance Imaging (MRI) and Nuclear
 Magnetic Resonance (NMR) systems.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTNKBBQDBKBAOD