Avingtrans maintains 'strong' balance sheet, secures new nuclear contracts

Engineering group Avingtrans said on Tuesday that its balance sheet had remained "strong" throughout the Covid-19 pandemic, with its presence in multiple market sectors and the "resilience and strength of covenant" of many of its customers meaning that it could continue to operate at close to normal levels.

Avingtrans said its order book and prospect pipeline remained "strong overall", albeit with some reduced prospects in specific sectors - most notably in oil and gas.

Sales for the year ended 31 May were projected to be up 8.5% to £114m, while adjusted underlying earnings were pegged to have risen 22.3% to £11.5m.

However, despite the "encouraging results", the AIM-listed group said it was still not possible to credit the impact of the Covid-19 pandemic on its performance in the current trading year.

As a result, Avingtrans stated it would "prudently" take measures in response to the "unprecedented conditions" affecting its markets, clients and businesses, to reduce its costs and protect its longer-term position.

These measures include conserving cash and improving liquidity in order to mitigate the effects of near-term disruption.

Elsewhere, Avingtrans secured two new nuclear sector contract wins - a $4.85m deal in South Korea and a £2.5m agreement with a British nuclear plant operator.

As of 1005 BST, Avingtrans shares had shot up 9.40% to 253.80p.