In a trading update, Avingtrans (AVG ) said business in the first half of the financial year has remained strong and that, as a result, the group is trading in line with market expectations.
Avingtrans, which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, reported that it had net cash (pre IFRS 16) in excess of £22.5m (31 May 2021: £23.3m) at the end of the first half.
The company told investors that it has increased its shareholding in the emerging Medtech 3D X-ray business, Adaptix, by another 150,000 shares, for a total consideration of £1.5 million.
It now owns 400,000 Adaptix shares, representing 11.9% of the current issued share capital.
In the year to 31 March 2021, Adaptix made a loss after tax of around £1.1m, it reported.
Commenting, Steve McQuillan, CEO of Avingtrans highlighted to investors: “The objective of the further investment in Adaptix is a vote of confidence in their strategy and in our strategy for Magnetica. The product launch plans of Magnetica and Adaptix are convergent, enabling the two businesses to mutually benefit by coordinating their approaches to market.”
Mark Evans, Chief Executive of Adaptix, added: “We recognise that the success of Adaptix and Magnetica will be augmented by working more closely together, to bring about a transformation in diagnostic
imaging. The funds will be deployed by Adaptix in developing commercial distribution for its Vet and Orthopaedic products, which will subsequently be used to distribute Magnetica’s MRI products also. It’s an exciting time for both businesses and the initial market response to the launch of the Adaptix system has been very encouraging.”
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