Avingtrans swings to profit after medical revenue leaps

27th Feb 2019 08:29

(Sharecast News) - Avingtrans on Wednesday reported that it swung to an interim profit after revenue almost doubled after its energy division put in a strong performance.For the six months ended 30 November the manufacturer of equipment and systems for the energy and medical sectors achieved profit before tax of £0.6m, up from a loss of £4.8m across the same period last year, as revenue increased by 77% to £47.7m.The increase in revenue was driven by a 90% increase of energy revenues driven by the AIM traded company's acquisition of Hayward Tyler Group, with a 10% underlying increase in energy revenues.Roger McDowell, chairman of Avingtrans, said: "The former Hayward Tyler Group businesses have continued to improve financially post-acquisition and we are engaged in the investment and development phase of our stated PIE strategy. This will enable us to fully realise the underlying value of the Hayward Tyler and Peter Brotherhood businesses."Meanwhile, the Medical division saw a 22% increase in revenue after its "strategically important" acquisition of MRI and NMR electronics producer Tecmag.The company increased its interim dividend by 7.7% to 1.4 pence per share and had cash and cash equivalents of £4.8m at the end of the period, down from £6.8m at the same point the year before."Notwithstanding global macroeconomic uncertainties, we remain confident about our prospects in both the Energy and Medical sectors. Recent orders and prospects underpin the confidence in our outlook," said McDowell.Avingtrans' shares were up 1.52% at 213.20p at 1140 GMT.