Avingtrans (AIM:AVG) – tremendous results in the face of considerable headwinds
We are mighty impressed with interims from this engineering group which manufactures critical components for the aerospace, energy and medical sectors. With sizeable contract potential from Sellafield the future looks quite exciting.
While revenue for the six months ending 30 November was down 5% to £26.3m, which is hardly catastrophic in the current climate, pre-tax profit increased 38% to £1.2m and adjusted diluted earnings was 3.4p per share compared with 2.9p per share in the prior year. A net comparison is even more flattering with basic eps 3.7p compared with 0.8p which included plenty of restructuring costs. Cash flow wasn’t quite as inspiring with operating profit of £1.3m resulting in a cash outflow of £645k and net cash outflow of £500k, being primarily due to an increase in working capital. Net debt…