TIDMAVG
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 GBP3.3m 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 GBP10m
order in 2019, which was completed in 2022.
A GBP1.6m 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 GBP3.0m (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
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
GBP108.9m, GBP13.5m & GBP13.6m respectively
Enquiries:
Avingtrans plc
Les Thomas, Interim Chairman
Steve McQuillan, Chief Executive Officer
Stephen King, Chief Financial Officer 01354 692391
Singer Capital Markets (Nominated Adviser
and Broker)
Shaun Dobson
Alex Bond
Oliver Platts 02074 963000
IFC Advisory (Financial PR)
Graham Herring
Tim Metcalfe
Zach Cohen 020 3934 6630
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.
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END
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