March 12 2014 Latest news:
Story by: JOHN ELWORTHY
Friday, February 28, 2014
Avingtrans Plc, which owns Chatteris-based Stainless Metalcraft, has reported a 90 per cent increase in revenues in its half-yearly interim results statement to the markets.
Stainless Metalcraft is part of Avingtrans PLC’s energy and medical division and contributed to an increase in revenues from £16.9m to £32.2million during the year to November 2013.
While much of this uplift came from the company’s aerospace division – Sigma Components – the acquisition of Maloney Metalcraft from Exterran UK in June also played a key role, delivering critical mass and expanded capabilities to the division’s oil & gas sector, as well as an initial net profit of £1.3m.
Austen Adams, managing director of Avingtrans’ Energy and Medical division, said: “While these results come too early to really demonstrate the long-term benefits of the Maloney Metalcraft acquisition, its integration with our Stainless Metalcraft businesses in Chatteris is already beginning to deliver results.
“When we acquired the company, it had very limited prospect pipeline but that has already grown to more than £100m, setting the division up well for a strong growth trajectory ahead.
“The acquisition also brought new, complementary expertise into the division, allowing us to expand our service lines for oil and gas customers, becoming a ‘one stop shop’ for the design, manufacture, installation and repair of performance critical components.
“Away from the oil and gas sector, we are continuing to invest in capacity and capability across the division – as demonstrated by the recent creation of a second manufacturing facility to support client growth in Chengdu, China – and we were also recently selected to take part in the Government’s Sharing in Growth scheme for the civil nuclear sector and expect this sector to deliver significant growth opportunities over the next few years too.”
Roger McDowall, chairman of Avingtrans, added: “These interim results demonstrate that our continuing clear focus on aerospace, energy and medical markets is already paying off.
“As we expected, it has been a busy first half at Energy and Medical, where integration of the Maloney acquisition and the Chinese operational expansion have fully-occupied the new divisional MD and senior management team.
“While it is too early to see the results of these activities at Maloney, investors will be please to note the substantial potential pipeline of business building at there. Our strategy is therefore on track and our confidence is underlined by our continued dividend progression.”