Avingtrans (AVG) H1 2025 earnings summary

Executive summary

• Group revenue rose 21.2% year-over-year to £79.0m, driven by strong performance in the Advanced Engineering Systems (AES) division and initial sales in Medical and Industrial Imaging (MII).

• Adjusted EBITDA increased 18.7% to £8.7m, with adjusted profit before tax stable at £4.5m.

• Interim dividend increased by 6% to 1.9p per share, reflecting confidence in future prospects.

• Order book in AES secures over 95% of FY25 market expectations, with more than £100m in orders for future years.

Financial highlights

• Gross margin slightly decreased to 30.0% (from 31.6%) due to OEM mix in AES.

• Adjusted diluted EPS from continuing operations rose to 12.0p (from 11.7p).

• Cash inflow from operating activities was £4.9m, reversing a prior outflow.

• Net debt (excluding IFRS16) increased to £8.9m, mainly due to investments in Slack & Parr, Magnetica, and Adaptix.

• Net debt to equity ratio (excluding IFRS16) at 7.7%.

Outlook and guidance

• Board remains confident in meeting FY25 market expectations, supported by a robust order book and strong contract revenue recognition.

• Magnetica’s 510(k) FDA submission expected in H2 2025; commercialisation of Adaptix 3D X-ray systems progressing.

• Continued focus on strategic M&A and value creation through the Pinpoint-Invest-Exit (PIE) strategy.