Avingtrans slips as net debt more than doubles
By Iain Gilbert
Date: Wednesday 24 Sep 2025
(Sharecast News) - Shares in critical components designer and manufacturer Avingtrans slipped on Wednesday after the engineering group posted a larger-than-expected increase in net debt.
Avingtrans said group continuing revenue for the year ended 31 May had risen 14.5% to £156.4m, primarily driven by organic growth of 13.9% in its Advanced Engineering Systems division.
Adjusted pre-tax profits grew to £8.6m, up from £7.3m a year earlier, while adjusted underlying earnings were slightly ahead of previously upgraded market expectations at £16.7m. Diluted adjusted earnings per share increased to 23.7p from 18.5p.
The AIM-listed firm also noted that gross margins were stable at 31.7% and declared a final dividend of 3p per share, resulting in a total dividend of 4.9p for the year, ahead of the 4,7p per share declared in FY24.
However, Avingtrans reported a sharp rise in net debt, which more than doubled from £6.1m to £12.3m, principally due to working capital movements and investment in growth initiatives, including its Medical & Industrial Imaging division.
Chairman Roger McDowell said: "In challenging global markets, Avingtrans has again performed robustly as a group and exceeded market expectations. During the year, we made good use of our resources, to continue with the Investment phase of our PIE strategy at Slack and Parr, Adaptix and Magnetica. This activity was, in turn, supported by a record set of results in the AES division.
"With several of our businesses now benefitting from positive global trends in AI, data centres and, relatedly, new nuclear power, we have a strong order book moving into FY26 and, therefore, we anticipate further organic growth as a Group this year."
As of 1000 BST, Avingtrans shares were down 3.07% at 67.86p.
Reporting by Iain Gilbert at Sharecast.com
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