GCIAvingtrans posts record £136.6m revenue in FY 2024, supported by energy sector gains and key acquisitions
Accidents happen. Indeed, last Saturday my youngest daughter unfortunately injured her arm whilst cycling and had to spend 6 hours in A&E waiting for an X-ray.
Luckily the damage was only cosmetic. Albeit it did once again illustrate the country's lack of available high-quality imaging equipment to check simple orthopaedic breaks.
The good news is that this is about to change.
You see, () has developed a new innovative helium-free MRI system and novel 3D X-ray device that should provide the perfect solution.
They're both lightweight, small-form and much cheaper than existing full-body scanners - ideal for assessing arms, ankles wrists, joints and soft tissues in community healthcare facilities, as well as for veterinary practices and industrial inspection - all while freeing up vital hospital resource and helping to reduce the UK’s 7m+ patient waiting list.
But that's not all.
's Advanced Engineering Systems division continues to go from strength to strength too - not only serving the resilient nuclear (23% 's revs), oil & gas, defence, transport (blast-proof doors for HS2 tunnels) and industrial sectors - but also posting standout performances from its Ormandy Rycroft Engineering (heat exchangers & HVAC products) and Hayward Tyler (mission-critical motors and pumps) subsidiaries, alongside the successful integration of Slack & Parr, which was acquired in Aug'23.
In particular, and as another indicator of the buoyant demand for nuclear energy, Microsoft said last week it wants to restart the Three Mile Island nuclear reactor in order to power its data centres - a site that was shut down in 2019.
All told, Avingtrans delivered FY24 sales up 17.3% to a record £136.6m, alongside adjusted EBITDA and EPS of £14.0m (£13.7m LY) and 18.5p (23.4p LY) respectively, after investing heavily in its high-potential medical division (£3.7m revs: LBITDA -£2.8m).
Here X-ray sales to vet practices have already begun in the UK and US, with healthcare volumes expected to ramp in FY'25. Similarly, the MRI device is scheduled for FDA approval by mid-2025, with first revenues thereafter.
Sure, these timescales are slightly later than originally planned due to enhanced cyber security checks across the US medical devices industry, yet equally the addressable market is estimated to be worth $7bn pa with high barriers to entry and little immediate competition.
CEO Steve McQuillan commenting: "In Q1'25, the Group has performed in line with management expectations with the momentum of FY24 continuing into FY25."
With respect to the balance sheet, net debt (excl IFRS 16) closed May'24 at a comfortable £6.1m due to M&A, healthcare investments and working capital build.
Lastly, Singer Capital Markets has today upgraded its target price to 525p/share from 510p, and FY25 forecasts to £161m turnover, £15m EBITDA and 14.3p EPS, underpinned by a strong pipeline, excellent forward visibility and 90% revenue cover for this year.
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