I have interviewed many accomplished UK fund managers over the years, and they all say the same about specialist engineer Avingtrans . The management is top class.
Well the good news is that it’s just got even better with the appointment of Stuart Gall as CEO of the medical & industrial imaging division (re Adaptix Ltd, Scientific Magnets & Magnetica Limited).
Indeed Stuart was one of the three founders of Fusion IP, that was acquired by IP Group for £103m in 2014. Whilst also being CEO of Intelligent Ultrasound - a medical imaging AI software & simulation provider – who was ultimately snapped up by GE Healthcare (£40m 2024) and Surgical Science Sweden AB (£43m Feb25).
But that’s not all. To me, Stuart’s expertise ideally positions the Medical & Industrial imaging arm to ultimately be spun out of Avingtrans as a separate listed company (ie IPO’d). Which if actioned, would probably once again release significant value for shareholders. Especially as in Nov’25, Adaptix Ltd obtained FDA approval for its orthopaedic 3D image scanner, the Ortho350. An ultracompact low-dose, low-power imaging system that generates high quality 3D X-rays at the point-of-care to improve patient outcomes.
CEO Steve McQuillan commenting: “We are delighted Stuart has been able to start his role earlier than originally notified and his proven track record in guiding technology companies from early innovation through to commercial success will be invaluable as we continue to build the value of our medical & industrial imaging division.”
Stuart Gall adding: "I look forward to working with the respective teams to accelerate their commercial adoption."
Elsewhere and equally noteworthy, came news last week that TerraPower - a next generation nuclear power firm founded by Bill Gates – had signed a deal with Meta to develop up to 8 Natrium reactors and energy storage system plants in the US to support the growing energy demand from data centers. Under the agreement, Meta will provide funding to support the buildout, with delivery as early as 2032.
An enormous investment (Est $10bn-$20bn), with some of this expected to flow down to Hayward Tyler (hashtag#AVG subsidiary). Given in Nov’23 it was awarded a $10m contract for the development of advanced sodium pumps for the Natrium Reactor Demonstration facility (Est $4bn) in Wyoming.
Finally wrt the numbers, Cavendish have a target price and SOTP valuation of 575p and 745p/share respectively, based on May FY’26 forecast for sales, EBITDA & adjusted EPS of £175m, £20.5m & 30.3p. Plus the majority of its turnover is derived from regulated & non discretionary spend, driven by powerful secular trends that are little impacted by today’s concoction of tariffs, wars and geopolitical uncertainty - supported too by a substantial orderbook providing >90% visibility.