Given the uncertainty triggered by Trump's 'Liberation day' tariffs on top of the ongoing wars in the Middle East and Ukraine, it's hardly surprising that many industrial stocks are either cutting or removing guidance (eg FedEx). However, there are a few operating in defence, AI, and nuclear power that are still bucking the trend.
One such firm is niche engineer Avingtrans (AVG) that sells and services mission critical components to all three of these buoyant sectors.
Here, AVG provides specialist HVAC systems for data centres (Ormandy Rycroft Engineering) and high-tech pumps for nuclear power (re new and life extensions - Hayward Tyler), alongside 'blast-proof doors' for HS2 and defence applications (Booth), and high integrity waste storage boxes for decommissioning at Sellafield (Metalcraft).
What's more, in this month's Spending Review, the UK government recommitted to its £4bn decommissioning programme - of which 75% has been allocated to Sellafield, one of AVG's largest clients. Elsewhere, a further £40bn is being invested in a new Sizewell C reactor, with Trump doing the same in America, effectively turbocharging the global industry.
So, putting all this together, how is the business performing?
Well, in this morning's year-end trading update, the company said that FY25 adjusted EBITDA and PBT would be in line with recently raised analyst estimates of £16.6m and £8.0m on revenues of £161.0m, driven by strong performances across its engineering division (AES).
Additionally, net debt (excluding IFRS16) came in better than anticipated at £12.3m (vs est £14.5m), a new £3.5m MoD contract was signed in May, and the high-potential Medical & Industrial Imaging Division (re small-form 3D X-Rays and MRI scanners) continues to perform in line with expectations.
Regarding the numbers, Singer Capital Markets has a 525p/share target price (nb based solely on AES), and is forecasting FY26 turnover, EBITDA, and adjusted EPS of £183.2m (+13.7% YoY), £20.0m (+20%), and 25.9p (+35%) respectively. On top, Singers believes the medical devices division is worth between £85m-£140m or another 251p-422p/share.
CEO Steve McQuillan commenting: "The AES division enters the new financial year in a strong position, supported by substantial multi-year order cover, including >£60m from Sellafield and £30m+ with HS2. As a result, the Board views the outlook for the year ahead with confidence."
Meaning, all told, Avingtrans is economically resilient, has robust forward visibility, and derives the majority of its sales from regulated and non discretionary areas, with the US (24% of the group) primarily supported by local production.
Prelims are scheduled for Wednesday, 24th September 2025.
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