Avingtrans (AVG) H2 2024 earnings summary

Executive summary

• Delivered full year expectations despite ongoing supply chain issues, with improving results at key subsidiaries and a record order book position since before the pandemic.

• Notable contract wins in the nuclear sector in both the UK and USA, and continued momentum in the HS2 infrastructure project.

• Strategic acquisitions of Slack & Parr and remaining shares in Adaptix, supporting growth in advanced engineering and medical imaging.

• Board remains confident in the current strategy and future prospects, with a focus on organic growth and value creation through M&A.

Financial highlights

• Group revenue increased to £136.6m, up from £116.4m year-over-year.

• Adjusted EBITDA rose to £14.0m from £13.7m, while adjusted diluted EPS declined to 18.5p from 23.4p.

• Gross profit margin slightly decreased to 32.2% from 32.9%.

• Net debt (excluding IFRS 16) was £6.1m at year-end, compared to net cash of £13.0m the previous year.

• Final dividend proposed at 4.7p, up from 4.5p.

Outlook and guidance

• Board remains mindful of ongoing challenges but expresses confidence in the strategy and future prospects.

• Anticipates FDA approval for MRI system in H1 2025 and continued growth in the $7bn addressable imaging market.