Avingtrans’ subsidiary unveils new ‘greener’ factor wing
On Monday, (AVG ) announced that its subsidiary, Booth Industries International, had reinforced its future growth potential after the company officially opened its new factory wing, which it said “promises to help deliver a more flexible and greener manufacturing facility.”
The facility, which is designed to meet a CO2 emission rate of 38.2kg/CO2/m2, uses thermal, lighting and energy saving advances to improve the energy efficiency of the building and limit CO2 emissions.
Avingtrans, which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, said it believes in the potential of Booth, noting that the group had seen a record order book since its acquisition.
The Company outlined to investors that the ceremonial ribbon was cut by Roger McDowell, Chairman of Avingtrans, who was also joined by Mike Jenkinson, Booth Industries’ Managing Director as well as various AVG board members, and members of staff from Booth Industries.
Commenting on the new factor wing, Mike Jenkinson outlined to investors: “We’re delighted with the new facility, which provides valuable additional capacity and state-of-the-art facilities to support the delivery of several key public sector contracts and our work for HS2.”
He added further, “As well as providing additional manufacturing capacity, the new building brings new materials handling equipment, Factory Acceptance Testing (FAT) facilities and improved site welfare and also forms a key part of our carbon reduction roadmap, which sets out the steps we are taking to become a carbon negative manufacturer by 2025.”
The Company explained that some 95% of the demolition materials removed following the removal of the pre-existing building were recycled, with the remaining five per cent consisting of asbestos-containing materials, which were disposed of safely.
“With a record order book secured, an industry-leading net Carbon Zero roadmap already within reach of completion, and a committed apprenticeship and local employment scheme providing vital future economy benefits, the new factory extension is the culmination of two years of hard work by everybody involved with the company, and of a determination to rebuild and grow the Booth name further, both nationally & internationally,” the Group told investors.
Earlier this month, Avingtrans announced its participation in a £12.9 million fund raise by emerging medtech Oxford-based firm, Adaptix, whereby it invested a total of £2.5m.
Avingtrans, through its majority-owned-subsidiary Magnetica (“MNA”), intends to collaborate with Adaptix, to develop a disruptive business offering which will ‘bring together low-cost 3D imaging in the form of MNA’s Cryogen-free MRI and Adaptix’s DT, to allow fusing of the image data, giving enhanced low-cost diagnostic capability, initially for orthopaedic imaging,’ it noted.
It said this target markets include some 28,000 US sites focused on minor injuries (urgent care) and private orthopaedic practices (private practices and ambulatory surgical centres).
The Company highlighted to its shareholders that the purpose of the collaboration is ‘to create a broader offering to customers than is delivered by each business alone and ultimately to bring together low-cost 3D MRI, X-ray and potentially ultrasound, in a solution which can address a significant proportion of all medical and veterinary imaging procedures.’
Last month, Avingtrans said it ended FY21 with “record adjusted profits and a solid cash position” after revenue from continuing operations rose by 7.1% to £98.5m from £92m in FY20. Its set of results prompted the Board to reintroduce a full year dividend of 4p a share.
In its recently published preliminary results for the year ended 31 May 2021, the Company reported record profits following the disposal of Peter Brotherhood in March 2021 for £35m.
As a result of the positive set of results, the Board of Avingtrans has reinstated the full year dividend to propose a dividend of 4.0p per share. Looking ahead, the Company informed investors that it also intends to reinstate progressive interim and final dividends for FY22.
During the period, Avingtrans reported record adjusted EBITDA from continuing operations which increased by 78.5% to £12.5m, up from £7.0m in FY20. Profit before tax increased to £7.7m (FY20: £2.6m) while diluted earnings per share were boosted to 22.4p (FY20: (8.0p).
Commenting on the results, Roger McDowell, Chairman of the Group, hailed the Company’s Pinpoint-Invest-Exit Strategy (“PIE”) which he stated had proven its worth with the successful sale of Peter Brotherhood which enabled the delivery of “excellent returns” for shareholders.
Avingtrans said it continues to invest in its three divisions, with a focus on the global energy and medical markets, to position them for maximum shareholder value via eventual exits.
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