Four of the world's most powerful growth engines are data centres, nuclear power, defence, and medical science.
Niche engineer Avingtrans (AVG) designs, manufactures, sells, and services mission critical components to all these sectors. From specialist HVAC systems for data centres (Ormandy Rycroft Engineering) and high-tech pumps for nuclear power (new and life extensions - Hayward Tyler) to 'blast-proof doors' for HS2 and defence applications (Booth), nuclear waste storage boxes for decommissioning at Sellafield (Metalcraft), and more recently FDA approved small form 3D X-ray machines (Adaptix).
What's more, despite the disruption caused by Washington's recent import tariffs, Avingtrans has a resilient business model, with most of its revenues derived from regulated and non-discretionary spend. Plus, US sales (24% of the group) are largely supported by local production.
In fact, if anything, these secular tailwinds are set to strengthen with President Trump's proposing even higher investment in nuclear power last week, and European NATO members declaring a new target of 5% of GDP (up from 2%) for defence.
Hardly surprising, therefore, at the Nov'24 interims back in Feb'25 AVG's order book covered 95% of FY25 revenue expectations with a further £100m bagged for future periods - not only providing excellent visibility in these uncertain times, but also helping to underpin this morning's May FY25 trading update with adjusted EBITDA coming in higher than analyst expectations of £15.1m on turnover of £161.0m (9.4% margin), driven by strong performances within its Advanced Engineering Systems (AES) division.
Sure, today's announcement was 'short and sweet'. Yet equally, Avingtrans plans to release another more detailed RNS sometime in mid June 2025 - once the management accounts have been reviewed.
Lastly, Singer Capital Markets has a 525p/share target price (nb based solely on AES) on the stock, and is forecasting FY'25 turnover, EBITDA, and adjusted EPS of £161m, £15.1m, and 14.3p. On top, Singers believes the medical devices division is worth between £85m-£140m or another 251p-422p/share.
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