TIDMAVG
RNS Number : 9878X
Avingtrans PLC
28 February 2017
28 February 2017
Avingtrans plc
("Avingtrans" or the "Group")
Interim results for the six months ended 30 November 2016
Avingtrans plc, which designs, manufactures and supplies
critical components, modules and associated services to the energy,
medical and industrial sectors, today announces its preliminary
results for the six months ended 30 November 2016.
Financial Highlights
-- Revenue from continuing operations increased by 11% to GBP9.6 m (2016 H1: GBP8.6m)
-- Adjusted group EBITDA advanced to breakeven (loss 2016 H1: GBP0.7m)
-- Adjusted profit before tax improved to a loss of GBP0.2m (loss 2016 H1: GBP1.2m)
-- Adjusted diluted loss per share from continuing operations 0.4p (loss 2016 H1: 3.6p)
-- Cash outflow from operating activities GBP3.5m (2016 H1: GBP0.5m)
-- Net cash reduced to GBP27.8m (31 May 2016: Net cash
GBP51.0m), following successful tender offer which returned
GBP19.4m to shareholders
-- Interim dividend increased by 9%, to 1.2p per share (2016 H1: 1.1p)
Energy and Medical revenues up 11%, EBIT improved to breakeven
in H1
-- Improving sales in continuing businesses - up 11% vs prior year
-- Divisional adjusted EBITDA of GBP0.5m, against prior year loss (loss 2016 H1: GBP0.2m)
-- Significant improvement in performance of Composite Products business
-- First Sellafield 3M3 (three-metre-cubed) prototype box delivered and fully approved
-- Chatteris facilities redevelopment for Sellafield is on time and on budget
-- Order book is strengthening: GBP9m / 10 year contract with Wuhan, China for NMR cryostats
-- China facility gearing-up for new contracts with Wuhan and Bruker
-- Post period end, acquisition of Scientific Magnetics Ltd, Abingdon, for GBP0.35m
Commenting on the results, Roger McDowell, Chairman, said:
"The successful tender offer was completed in early November
2016 and resulted in GBP19.4m being returned to shareholders. This
was less cash than anticipated - a positive vote - leaving the
group with cash balance of almost GBP28m, to enable future M&A
and organic growth opportunities. M&A activity is now a
principal focus of the management team, as we seek to build on past
successes.
Operationally, progress with Sellafield and other new customers
is on track and we were delighted to welcome the Sellafield team to
the official opening of the new facility for 3M3 box manufacture at
Chatteris, at the end of the first half. The Energy and Medical
division performed in line with management expectations in the
period and we look forward to the coming months, as we begin to
capitalise on the recent contract wins with Sellafield, Rapiscan,
Bruker and EDF."
"Our attractive structural growth markets and durable customer
relationships mean that we remain optimistic about the future of
Avingtrans."
Enquiries:
Avingtrans plc
Steve McQuillan, CEO
Stephen King, CFO 0135 469 2391
N+1 Singer
Shaun Dobson
Lauren Kettle 020 7496 3000
Newgate
(Financial PR)
Adam Lloyd
Ed Treadwell
James Browne 020 7653 9850
About Avingtrans plc:
Avingtrans is engaged in the provision of highly engineered
components, systems and services to the energy, medical, industrial
and traffic management industries worldwide.
Energy and Medical
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.
Maloney Metalcraft Ltd - Aldridge, UK
Designs, manufactures and services oil and gas
extraction and processing equipment, including
process plant for dehydration, sweetening, drying
and compression.
Crown International Ltd - Portishead, UK
Designs and manufactures market-leading pole
and support systems for roadside signage and
safety cameras, rail track signalling and gantries.
Composite Products Ltd - Buckingham, UK
Centre for composite technology, parts and assemblies,
serving customers in industrial markets.
Chairman's Statement
Following a momentous prior year, in which we successfully
disposed of our Aerospace division, we have now entered a
rebuilding period, as previously communicated. We successfully
completed the tender offer in the first half, returning GBP19.4m to
shareholders. This was less cash than anticipated - a positive vote
- leaving the group with a cash balance of almost GBP28m, to enable
future M&A and organic growth opportunities.
Despite the current geopolitical uncertainties, we believe that
the strength of our balance sheet puts us in a good position - we
are not under any pressure to make acquisitions and it is a good
time to have a healthy cash position. We are excited to note that,
post period end, we acquired the business Scientific Magnetics Ltd,
a manufacturer of superconducting magnet systems and cryogenics for
MRI and other markets, for GBP0.35m. This small, but strategic
acquisition, will act as the cornerstone of our vertical
integration strategy in the medical market.
As is often the case, our Energy and Medical business is
expected to be second half weighted, having won important projects
in FY16, which we are in the process of ramping up - notably the
on-going pre-production phase of Sellafield 3M3 Box operations at
Metalcraft. So far, this is progressing positively, with Sellafield
recently approving the first 3M3 prototype unit. Crown is also
expected to enjoy a stronger second half, with new projects
expected to convert to sales during this period.
As investors will be aware, the Sellafield project is the
precursor to a significant expansion of long term business in the
nuclear decommissioning sector. This first contract is for 1,100
waste storage containers over 10 years (worth GBP47m in revenue).
We believe that Metalcraft remains well-placed to be a key partner
for Sellafield in this programme over the next 30 years and to
participate in further contracts in the sector, as and when these
are tendered.
Thus, we consider that a long term partnership is developing
with Sellafield, utilising Metalcraft's expertise in producing high
integrity vessels and containers, on schedule and budget, as we
have proven for many other markets. This is potentially
transformational for the Energy business over the next few years.
We are pleased with progress on other recently won contracts -
especially with Rapiscan, which has improved the performance of
Composite Products in Buckingham substantially.
New contract preparations are also proceeding to plan in China,
concerning Bruker and Wuhan, for "NMR" (Nuclear Magnetic Resonance)
vacuum vessel products.
During the period, we continued to invest in skills - especially
apprentices - as part of our on-going journey towards world-class
manufacturing capability. Our efforts have been recently rewarded
at regional and national apprentice awards ceremonies and at the
Nuclear Decommissioning Authority's (NDA) Supply Chain Awards,
where we won the prestigious Minister's Award. Our Metalcraft
business now ranks amongst the top 100 apprentice providers in the
UK. I am particularly proud of our skills investment, as we
continue to cultivate high quality engineering careers for young
people.
In addition to the cash returned to shareholders in the period,
the Board has declared an increased interim dividend, of 1.2 pence
per share, once again underlining our commitment to consistently
improve returns to our shareholders.
On behalf of our valued customers, our loyal investors and the
Board, I would like to thank our employees for their continued
dedication and hard work during the last few months, as we seek to
transform Avingtrans once again and we all look forward towards the
next exciting growth phase.
Roger McDowell
Chairman
27 February 2017
Strategic Review
Group Performance
Growth Strategy (PIE)
We are a precision engineering group, operating in
differentiated, specialist niches in the supply chains of many of
the world's best known engineering original equipment
manufacturers. Our strategy is to build market-leading niche
positions in our chosen sectors - currently Energy and Medical.
Over the longer term, our acquisition strategy has enabled our
businesses to develop the critical mass necessary to achieve market
leadership.
Our core businesses have the capability to engineer products in
Europe and produce those products partly, or wholly in Asia,
allowing the Company and our customers to access low cost sourcing
at minimum risk, as well as positioning us neatly in the
development of the Chinese and Asian markets for our products.
Metalcraft is well established in China, providing integrated
supply chain options for our customers.
We have strengthened our capability to manage sophisticated
outsourced manufacturing programmes for our customers, which has
enabled us to build stronger and more durable long term
relationships with the prospect of further sales growth. We remain
focused on markets where we can sustain a competitive advantage and
where the regulatory and technical requirements provide competitive
barriers to entry.
The Group's clear objective is to continue the proven strategy
of "buy and build" in regulated engineering niche markets, where we
see consolidation opportunities, which can lead to significantly
increased shareholder returns over the medium to long term. At the
appropriate time we will seek to crystallise these gains with
periodic sales of businesses at advantageous valuations and return
the proceeds to shareholders. We call this strategy PIE -
"Pinpoint-Invest-Exit". Previous deals - not least the recent
disposal of Sigma - have clearly demonstrated the success of this
approach, producing substantial increases in shareholder value. We
have built strong brands and value from smaller constituent parts,
we have demonstrated well-developed deal-making skills and we have
also shown that we do not overpay for assets. The strategy to "buy
and build" around smaller deals and consolidate relevant niches has
significant potential to generate growth and shareholder value, as
demonstrated with Sigma and JenaTec. Having built successful
Avingtrans businesses in Germany, the USA and China, as well as the
UK, M&A prospects will not be confined to the domestic
market.
New Divisional Structure
In order to give greater structure and focus to the Group's
growth strategy we will organise the operational management and
financial reporting of the business around two core sectors: Energy
and Medical. Both divisions have distinct markets and technological
features making this organisational change a logical step:
Energy: where we are developing our position as a leading
European supplier of energy industry process modules, vertically
integrating this capability with the vessel manufacturing
capability at Metalcraft and the recently acquired assets of
Whiteley Read Engineering Ltd. This same vertical integration
capability lends itself strongly to the nuclear decommissioning,
life extension and "new nuclear" markets - in particular, nuclear
waste storage containers - as well as a variety of other niches in
the renewable energy sector.
Medical: Metalcraft's cryogenic vacuum vessel manufacturing
pedigree, spanning over 40 years, makes us a supplier of choice to
OEMs in markets where this capability is critical; notably in
magnetic resonance imaging, nuclear magnetic resonance, proton
therapy and related sectors. We enjoy a global market leading
position in this particular supply niche. The recent acquisition of
Scientific Magnetics Ltd adds considerable technology and
engineering capability in MRI and NMR and underpins the potential
to concentrate our medical businesses into a stand-alone
division.
When the preliminary results for the year ending 31 May 2017 are
published, management will also report on the operational and
financial performance of the two divisions.
Operations
Energy and Medical Division (Metalcraft, Maloney Metalcraft,
Composite Products, Crown)
The effects of the low oil price have now worked through at
Maloney and we have most of our remaining resources focused
elsewhere, following a residual phase of restructuring implemented
in the period. We are now focused on the growth areas in the energy
market, for example: energy storage; carbon capture; and nuclear
power life extension and decommissioning.
As noted above, the initial modest fruits of recent contract
wins began to mature in the period, with revenues increasing by 11%
versus 2016 first half, a trend which we expect to continue in the
second half. This resulted in a positive EBITDA for the division,
in line with management expectations and representing a welcome
improvement versus last year's first half loss, with notable
improvement at Composite Products, Buckingham (retained after the
Aerospace disposal).
Despite the recent oil price issues, the US Energy Information
Administration forecasts a 48% increase in global energy
consumption (between 2012 and 2040) mainly driven by population
growth. This is positive for Metalcraft and Maloney, since we have
interests in various parts of the energy cycle, from primary
extraction, to generation, alternative energy storage and
decommissioning. Decommissioning activities are steadily gathering
pace, as this very long term issue is slowly grasped by the UK
government and others around the world.
The demographics of a growing and ageing world population are
encouraging for the medical imaging and diagnostics markets, so the
business is well placed to benefit from external market drivers.
There have been notable changes of ownership in some of the key
players in the MRI sector recently, with Cannon acquiring Toshiba's
Medical business unit post period end for $6bn and Siemens putting
their Healthcare business up for sale. We continue to see new
entrants penetrating the Chinese medical imaging market, which, in
general, we view positively. These developments indicate that the
sector will continue to spend money on developing new products and
imaging techniques - eg the improved MRI diagnostic procedure for
prostate cancer, as reported recently.
Summarising developments in the period, at the Energy and
Medical businesses:
-- Metalcraft, Chatteris: business with Siemens and Cummins in
the UK was again steady. The GBP47m, 10-year contract with
Sellafield Ltd, to produce 3M3 boxes, for the storage of
intermediate level nuclear waste, is progressing to plan. We have
made excellent progress with facilities refurbishment and
pre-production tests. The production set-up and prototyping phase
will continue in the current financial year, with series production
expected to commence in calendar 2018. Metalcraft is well-placed to
be a key partner for Sellafield in this programme. The total number
of 3M3 boxes required is now expected to be in excess of 70,000
over the entire programme life, worth an estimated GBP3bn,
according to Sellafield's own estimates.
-- Metalcraft, Chengdu: results for the unit continued to
improve year on year and we made good progress with the existing
customers, as well as preparing for the new contracts with Bruker
and Wuhan for "NMR" vessels.
-- Maloney Metalcraft, Aldridge: as noted elsewhere, the oil
price effects continued to affect the business in the period,
though this has now largely washed though, with a limited
restructuring completed, to stabilise our position in the new $50 a
barrel oil reality. The gas project contracts with Samsung and JGC
Gulf International Co. Ltd progressed substantially in the period.
Both have taken longer to complete than previously anticipated, due
to customer originated programme changes. Work also commenced on
the EDF contract.
-- Crown, Portishead: Crown had a steady, if subdued first half.
The "FET" carbon abatement trial in Wales concluded successfully
and we are working to turn this application into a product of the
future with FET. This technology promises to make small to medium
diesel generators "clean", which is important in a future where the
energy grid is more fragmented and localised. Other prospects with
FET are also progressing, albeit slowly.
-- Composite Products, Buckingham: performance in the period
improved markedly, versus H1 last year, as we began volume
deliveries to Rapiscan. The second half performance will be similar
and we anticipate further volume growth in the next financial
year.
-- Whiteley Read Engineering Ltd, Rotherham: This small assets
acquisition has already proven its worth, by successfully
completing overspill activities from Maloney and Metalcraft, as
well as widening our customer base in the Energy sector.
-- Scientific Magnetics Ltd, Abingdon: acquired in February
2017, this niche supplier of high power superconducting magnets and
cryogenics brings considerable engineering capability, at a time
when we expect to see new breakthrough technologies impacting the
magnet designs of the future.
Financial Performance
Key Performance Indicators
The Group uses a number of financial key performance indicators
to monitor the business, as set out below.
Revenue: continuing operations beginning to see impact of prior
contract wins
Full year Group revenue of continuing operations was up by 11%,
to GBP9.6m (2016 H1: GBP8.6m). Energy and Medical are beginning the
ramp up of output for various recent contract wins, albeit modest
improvement in H1.
The proportion of revenue derived from long term agreements
(LTAs) of three years plus is increasing. We exited the previous
financial year with almost GBP60m of LTAs signed and have since
signed the Wuhan contact worth GBP9m and an extended contract with
Siemens.
Profit: improving margins on rising volumes
Gross margins were 15.0% (2016 H1: 9.8%), improving as the
margin mix of new contracts seeps in.
Adjusted EBITDA of continuing operations advanced significantly,
to GBP0.5m (loss 2016 H1: GBP0.2m), as anticipated, due to
increased turnover and improving product mix. The Composite
Products performance improved considerably in H1, on rising
demand.
Loss per Share: Improved for continuing operations.
Adjusted diluted loss per share for continuing operations
improved to 0.4p, from a loss in 2016 H1 of 3.6p.
Funding and Liquidity: Balance sheet strong with Net Cash -
tender offer returned GBP19.4m
The net cash outflow from operating activities was GBP3.5m (2016
H1: GBP0.5m), primarily due to Sigma disposal costs, as previously
highlighted. Net Cash at the period end stood at GBP27.8m (31(st)
May 2016: GBP51.0m) following the return of GBP19.4m (pre costs) of
cash to shareholders via the tender offer. Having initially looked
to return up to GBP28m, the Group's resultant cash position is
therefore approximately GBP8m above prior expectations.
Dividend: steady progress continues
The Board again voted to underline our progressive dividend
policy and we are pleased to be able to recommend an improved
interim dividend of 1.2 pence per share (2016 H1: 1.1 pence per
share). We intend to continue on this progressive path, subject to
the outcome of our M&A activities. The dividend will be paid on
16 June 2017, to shareholders on the register at 26 May 2017.
People
Good governance dictates that the non-executive directors should
be replaced periodically. As previously announced, Jeremy Hamer
retired from the Avingtrans Board at the AGM in November. He is
replaced as Audit Committee Chair by Les Thomas. The Board warmly
thanks Jeremy for his very valuable contribution to Avingtrans over
many years and we wish him the very best for the future.
Post period end, we have appointed a new General Manager for
Metalcraft China. Significantly, he is a Chinese national, meaning
that all Metalcraft employees there are Chinese, for the first
time.
There were no other Board or top team management changes in the
period, but we continued to develop and reinforce our management
team in Energy and Medical. Skills availability remains
challenging, but we do not expect to be unduly constrained by any
shortages and we continue to invest in skills - e.g. through
apprenticeships - notably at our training centre at Chatteris.
Metalcraft's apprentice development has recently been recognised
with regional and national awards.
Outlook
The Group is a niche engineering market leader in the Energy,
Medical and Industrial sectors. Recent activity under our
"Pinpoint-Invest-Exit" (PIE) strategy, such as the Sigma sale last
year, demonstrates that we can produce excellent returns and
deliver real proceeds back to shareholders. We will continue to be
uncompromising about delivering value and we are not afraid to sell
and return capital, as and when the timing is right.
Our investment in operational excellence continues to produce
significant new business wins that support our results and provide
good visibility of longer term earnings. We have an excellent
customer base which we can build upon and differentiated product
niches to exploit. We are very well placed to benefit from further
market consolidation.
Our Energy and Medical businesses are clear leaders in their
chosen markets, providing customers with consistent quality, as
part of a world class supplier journey. Our Chinese presence is
also providing a crucial additional competitive advantage.
With attractive structural growth markets and durable customer
relationships, we remain optimistic about the future for
Avingtrans. Future acquisition efforts will be conducted
rigorously, with an underpinning ethos that any deal should be for
the benefit of all stakeholders and should build sustainable
long-term value. Investors are asked to endorse our strategy and
join us in the next exciting phase of our development.
Roger McDowell Steve McQuillan Stephen King
Chairman Chief Executive Officer Chief Financial Officer
27 February 2017 27 February 2017 27 February 2017
Consolidated Income Statement (Unaudited)
for the six months ended 30 November 2016
6 months 6 months Year
to to to
30 Nov 30 Nov 31 May
2016 2015 2016
GBP'000 GBP'000 GBP'000
Revenue 9,593 8,606 21,177
Cost of sales (8,155) (7,763) (18,028)
Gross profit 1,438 843 3,149
Distribution costs (321) (280) (699)
---------------------------------- --------- --------- ---------
Share based payment expense (7) (13) (21)
Tender share buyback costs (199) - -
Restructuring costs (183) (176) (272)
Net proceeds on disposal
of property - 444 446
Other administrative expenses (1,454) (1,686) (2,830)
---------------------------------- --------- --------- ---------
Total administrative expenses (1,843) (1,431) (2,677)
Operating loss (726) (868) (277)
Finance income 159 1 554
Finance costs (22) (39) (82)
(Loss)/profit before taxation (589) (906) 245
Taxation (Note 3) 103 166 175
(Loss)/profit after taxation
from continuing operations (486) (740) 420
Profit after taxation from
discontinued operations - 1,763 30,716
(Loss)/profit for the financial
period (486) 1,023 31,136
(Loss)/earnings per share:
From continuing operations
- Basic (1.9)p (2.7)p 1.5p
- Diluted (1.9)p (2.7)p 1.5p
From continuing and discontinued
operations
- Basic (1.9)p 3.7p 112.3p
- Diluted (1.9)p 3.7p 111.4p
Consolidated statement of comprehensive income (Unaudited)
for the six months ended 30 November 2016
6 months 6 months Year
to to to
30 Nov 30 Nov 31 May
2016 2015 2016
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (486) 1,023 31,136
Exchange differences on
translation of foreign operations 11 (83) (283)
Exchange differences recycled
on disposal of subsidiary
undertakings 477
Total comprehensive (loss)/
income for the period (475) 940 31,330
Consolidated cash flow statement (Unaudited)
for the six months ended 30 November 2016
6 months 6 months Year
to to to
30 Nov 30 Nov 31 May
2016 2015 2016
GBP'000 GBP'000 GBP'000
Operating activities
Cash flows from operating
activities (3,466) (645) 7,885
Finance costs paid (22) (68) (146)
Income tax repaid - 198 52
Net cash (outflow)/inflow
from operating activities (3,488) (515) 7,791
Investing activities
Acquisition of subsidiary
undertakings - - (3,500)
Disposal of subsidiary undertakings - - 53,677
Finance income 159 1 554
Purchase of intangible assets (146) (323) (766)
Purchase of property, plant
and equipment (82) (348) (1,062)
Proceeds from sale of intangible
assets - - 9
Proceeds from sale of property,
plant and equipment - 1,283 1,319
Net cash (used)/generated
by investing activities (69) 613 50,231
Financing activities
Equity dividends paid (305) (277) (830)
Repayments of bank loans (244) (790) (4,156)
Repayments of obligations
under finance leases (149) (380) (1,176)
Proceeds from issue of ordinary
shares 283 5 32
Purchase of shares - tender (19,383) - -
buyback
Borrowings raised - 187 1,651
Net cash outflow from financing
activities (19,798) (1,255) (4,479)
Net (decrease)/increase
in cash and cash equivalents (23,355) (1,157) 53,543
Cash and cash equivalents
at beginning of period 52,923 (361) (361)
Effect of foreign exchange
rate changes (265) (46) (259)
Cash and cash equivalents
at end of period (29,303) (1,564) 52,923
Cashflows from operating activities (Unaudited)
for the six months ended 30 November 2016
6 months 6 months Year
to to to
30 Nov 30 Nov 31 May
2016 2015 2016
GBP'000 GBP'000 GBP'000
(Loss)/profit before income
tax from continuing operations (589) (906) 245
Profit before income tax
from discontinued operations - 2,143 3,878
Adjustments for:
Depreciation of property,
plant and equipment 246 664 1,520
Amortisation of intangible
assets 86 582 983
Profit on disposal of property,
plant and equipment - (498) (489)
Finance income (159) (1) (554)
Finance expense 22 68 146
Research and Development
Expenditure Credit - (134) (168)
Share based payment charge 7 22 36
Bargain purchase on acquisition - - (172)
Changes in working capital
Increase in inventories (539) (1,926) (2,327)
(Increase)/decrease in trade
and other receivables (33) 1,837 (556)
(Decrease)/increase in trade
and other payables (2,509) (2,498) 5,339
Other non cash changes 2 2 4
Cash (outflow)/inflow from
operating activities (3,466) (645) 7,885
Summarised consolidated balance sheet (Unaudited)
at 30 November 2016
30 Nov 30 Nov 31 May
2016 2015 2016
GBP'000 GBP'000 GBP'000
Non current assets
Goodwill 4,550 9,557 4,550
Other intangible assets 991 3,184 930
Property, plant and equipment 4,654 11,371 4,668
Deferred tax 6 64 6
10,201 24,176 10,154
Current assets
Inventories 3,622 12,655 3,046
Trade and other receivables:
amounts falling due within
one year 8,024 17,196 6,141
Trade and other receivables:
amounts falling due within
after year 1,450 - 1,450
Current tax asset 85 16 85
Cash and cash equivalents 34,674 5,115 56,503
47,855 34,982 67,225
Total assets 58,056 59,158 77,379
Current liabilities
Trade and other payables (6,061) (11,721) (6,908)
Obligations under finance
leases (245) (684) (295)
Borrowings (5,549) (7,809) (3,911)
Current tax liabilities (129) (510) (129)
Total current liabilities (11,984) (20,724) (11,243)
Non-current liabilities
Borrowings (986) (2,176) (1,075)
Obligations under finance
leases (77) (583) (176)
Deferred tax (128) (800) (132)
Total non-current liabilities (1,191) (3,559) (1,383)
Total liabilities (13,175) (24,283) (12,626)
Net assets 44,881 34,875 64,753
Equity
Share capital 916 1,386 1,387
Share premium account 11,173 10,877 10,903
Capital redemption reserve 814 814 814
Merger reserve - 402 -
Translation reserve 3 (285) (8)
Other reserves 180 180 180
Investment in own shares (1,000) (1,000) (1,000)
Retained earnings 32,795 22,501 52,477
Total equity attributable
to equity owners of the
parent 44,881 34,875 64,753
Consolidated statement of changes in equity (Unaudited)
at 30 November 2016
Capital Investment
Share Share redemp- Trans- in own
capital premium tion Merger lation Other shares Retained
account account reserve reserve reserve Reserves Earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 June
2015 1,385 10,873 814 402 (202) 180 (1,000) 21,733 34,185
Shares issued 1 4 - - - - - - 5
Dividend paid - - - - - - - (277) (277)
Share-based
payments - - - - - - - 22 22
-------- -------- -------- -------- -------- --------- ---------- --------- --------
Transactions
with owners 1 4 - - - - - (255) (250)
Profit for
the period - - - - - - - 1,023 1,023
Other comprehensive
income
Exchange rate
loss - - - - (83) - - - (83)
-------- -------- -------- -------- -------- --------- ---------- --------- --------
Total comprehensive
income for
the year - - - - (83) - - 1,023 940
At 30 Nov
2015 1,386 10,877 814 402 (285) 180 (1,000) 22,501 34,875
======== ======== ======== ======== ======== ========= ========== ========= ========
At 1 Dec 2015 1,386 10,877 814 402 (285) 180 (1,000) 22,501 34,875
Shares issued 1 26 - - - - - - 27
Dividend paid - - - - - - - (553) (553)
Transfer on
disposal - - - (402) - - - 402 -
Share-based
payments - - - - - - - 14 14
-------- -------- -------- -------- -------- --------- ---------- --------- --------
Transactions
with owners 1 26 - (402) - - - (137) (512)
Profit for
the period - - - - - - - 30,113 30,113
Other comprehensive
income
Exchange rate
loss - - - - (200) - - - (200)
Recycled on
disposal - - - - 477 - - - 477
-------- -------- -------- -------- -------- --------- ---------- --------- --------
Total comprehensive
income for
the year - - - - 277 - - 30,113 30,390
At 31 May
2016 1,387 10,903 814 - (8) 180 (1,000) 52,477 64,753
======== ======== ======== ======== ======== ========= ========== ========= ========
At 1 June
2016 1,387 10,903 814 - (8) 180 (1,000) 52,477 64,753
Shares issued 13 270 - - - - - - 283
Tender share
buyback (484) - - - - - - (18,898) (19,382)
Dividend paid - - - - - - - (305) (305)
Share-based
payments - - - - - - - 7 7
-------- -------- -------- -------- -------- --------- ---------- --------- --------
Transactions
with owners (471) 270 - - - - - (19,196) (19,397)
Loss for the
period - - - - - - - (486) (486)
Other comprehensive
income
Exchange rate
gain - - - - 11 - - - 11
-------- -------- -------- -------- -------- --------- ---------- --------- --------
Total comprehensive
income for
the year - - - - 11 - - (486) (475)
At 30 Nov
2016 916 11,173 814 - 3 180 (1,000) 32,795 44,881
======== ======== ======== ======== ======== ========= ========== ========= ========
Notes to the half year statement
30 November 2016
1. Basis of preparation
The Group's interim results for the six month period ended 30
November 2016 are prepared in accordance with the Group's
accounting policies which are based on the recognition and
measurement principles of International Financial Reporting
Standards ('IFRS') as adopted by the EU and effective, or expected
to be adopted and effective, at 31 May 2017. As permitted, this
interim report has been prepared in accordance with the AIM rules
and not in accordance with IAS34 'Interim financial reporting'.
These interim results do not constitute full statutory accounts
within the meaning of section 434 of the Companies Act 2006 and are
unaudited. The unaudited interim financial statements were approved
by the Board of Directors on 29 February 2017 and will shortly be
available on the Group's website at
http://www.avingtrans.plc.uk/pages/reports.html.
The consolidated financial statements are prepared under the
historical cost convention as modified to include the revaluation
of financial instruments. The accounting policies used in the
interim financial statements are consistent with IFRS and those
which will be adopted in the preparation of the Group's annual
report and financial statements for the year ended 31 May 2017. The
statutory accounts for the year ended 31 May 2016, which were
prepared under IFRS, have been filed with the Registrar of
Companies. These statutory accounts carried an unqualified
Auditor's Report and did not contain a statement under either
Section 498(2) or (3) of the Companies Act 2006.
2. Segmental analysis
Energy Unallocated Total
and Central
Medical items
GBP'000 GBP'000 GBP'000
6 months ended
30 Nov 2016
Revenue 9,593 - 9,593
Operating loss (49) (677) (726)
Year ended 31
May 2016
Revenue 21,177 - 21,177
Operating profit/(loss) 59 (286) (227)
6 months ended
30 Nov 2015
Revenue 8,606 - 8,606
Operating (loss) (428) (440) (868)
3. Taxation
The taxation credit/(charge) is based upon the expected
effective rate for the year ended 31 May 2017.
4. (Loss)/earnings per share
Basic (loss)/earnings per share is based on the (loss)/earnings
attributable to ordinary shareholders and the weighted average
number of ordinary shares in issue during the year.
For diluted (loss)/earnings per share the weighted average
number of ordinary shares is adjusted to assume conversion of all
dilutive potential ordinary shares, being the CSOP and EMI share
options.
6 months 6 months Year to
to to 31 May
30 Nov 30 Nov 2016
2016 2015 No
No No
Weighted average number
of shares - basic 25,576,758 27,712,449 27,725,452
Share Option adjustment 203,867 106,901 230,934
Weighted average number
of shares - diluted 25,780,625 27,819,350 27,956,386
GBP'000 GBP'000 GBP'000
(Loss)/earnings from
continuing operations (486) (740) 420
Share based payments 7 13 21
Restructuring costs 183 176 272
Tender share buyback 199 - -
costs
Net proceeds on disposal
of property - (444) (446)
Adjusted (loss)/earnings
from continuing operations (97) (995) 267
From continuing operations:
Basic (loss)/earnings
per share (1.9)p (2.7)p 1.5p
Adjusted basic (loss)/earnings
per share (0.4)p (3.6)p 1.0p
Diluted (loss)/earnings
per share (1.9)p (2.7)p 1.5p
Adjusted diluted (loss)/earnings
per share (0.4)p (3.6)p 1.0p
Earnings from discontinued
operations - 1,763 30,716
Basic earnings per share - 6.4p 110.8p
Diluted earnings per
share - 6.3p 109.9p
(Loss)/earnings attributable
to shareholders (97) 1,023 31,136
Basic (loss)/earnings
per share (1.9)p 3.7p 112.3p
Diluted (loss)/earnings
per share (1.9)p 3.7p 111.4p
The Directors believe that the above adjusted (loss)/earnings
per share calculation from continuing operations is the most
appropriate reflection of the Group performance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAXAXASNXEFF
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