Avingtrans saw full year group revenue from continuing operations fall by 6% to £21.2m in the year to the end of May (2015: £22.6m).
Energy and Medical again saw year-on-year effects of the oil price holding back revenues, though the base position now seems stable. Adjusted EBITDA increased by 18% to £0.4m (2015: £0.3m).
Prompt action to re-size the cost base at Maloney, on-going improvements at Metalcraft and further progress in China improved the overall EBITDA. Gross margins were 14.9% (2015: 10.7%), improving despite adverse conditions.
- Aerospace division sold for an enterprise value of £65m, just prior to year end
- Revenue from continuing operations decreased by 6% to £21.2m (2015: £22.6m)
- Adjusted EBITDA from continuing operations increased by 18% to £0.4m (2015: £0.3m)
- Adjusted profit before tax improved to £0.1m (loss 2015: £0.7m)
- Adjusted diluted earnings per share from continuing operations 1p (loss 2015: (0.4p))
- Cash generated from operating activities £7.8m (2015: £1.6m). Continued investment in capability and capacity in continuing operations: £0.5m (2015: £0.8m)
- Net cash increased to £51m (31 May 2015: Net debt £5.9m)
- Increased final dividend of 2.1p per share, full year total 3.2p (2015: Final 2p, Total 3p)
- Tender offer of £28 million to be announced shortly, expected to be completed during November 2016
Chairman Roger McDowell, Chairman, said: "This was an exceptional year for Avingtrans. The group sold its Aerospace division for an enterprise value of £65m with the intention to return £28m of the disposal proceeds to shareholders through a tender offer, which we will announce shortly.
"Plans are advancing positively on the expected utilisation of the remaining funds, both organically and via acquisition.
"The Energy and Medical division performed in line with management expectations in the period and we look forward to the year ahead, as we prepare to capitalise on the major contract wins with Sellafield, Rapiscan, Bruker and EDF."
"With attractive structural growth markets and durable customer relationships, we remain cautiously confident about the future of Avingtrans."