Avingtrans (AVG) , the AIM listed original equipment manufacturer, shot up 10% after a positive trading update on Wednesday.
The £78 million market cap company said it made excellent trading progress during the year, and expects revenues and profits to be ahead of market expectations.
It told investors it anticipates approximately £104m in revenues, £5.8m in operating profits and profits before tax of £5.2m for the year ending 31 May 2019.
The company cited improvement in performance of its Hayward Tyler business as it secured a number of key contracts during the year.
It also said that a continued focus on the aftermarket is paying off, with half of all new orders being for aftermarket opportunities across the company.
Shares have rallied from 178p at the beginning of the year to trading at 245p on Wednesday
Steve McQuillan, CEO of Avingtrans, commented: "Avingtrans has had another solid year of growth across our core divisions and I am pleased to announce the Company expects turnover, operating profit and PBT to be ahead of market expectations.”
"This is attributable to both the significant contract wins we have delivered on both sides of the Atlantic in the last 12 months and to the success of Pinpoint-Invest-Exit strategy. Importantly, the future looks bright for our business.”
He added that he anticipates that the recent acquisitions of Tecmag, Booth Industries Limited and Energy Steel will positively impact the Group's revenue forecasts for FY20, and profitability in FY21 and beyond.
Avingtrans designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy, medical and industrial markets worldwide.
Follow News & Updates from Avingtrans here: