Avingtrans trading in line, makes two HVAC acquisitions

Energy, medical and industrial technology developer Avingtrans said in an update on Monday that trading in the first six months of its financial year was in line with market expectations.

The AIM-traded company also announced that its Ormandy Group business unit, which designs, manufactures and services off-site plant, heat exchangers and other heating, ventilation and air conditioning (HVAC) products, has acquired the business and assets of the Yorkshire-based Hevac.

It has also acquired the business and assets of the Watford-based plates and gaskets supplier HeatExchangeSpares.com.

The total consideration for the two acquisitions was expected to be £0.83m, funded from its existing cash resources.

In the latest reported financial year ended December 2021, the combined businesses and assets generated £5.3m in sales, and a loss before tax of £0.3m.

The gross assets being acquired totalled £0.75m.

Avingtrans said the acquisitions would complement Ormandy’s operations, and expand its product range.

Both Hevac and HES were described as “established names” in the HVAC industry, with “strong reputations” for supplying “quality systems and spares” for commercial and public buildings globally.

“Despite the continuing difficult operating environment, I am pleased to report that group trading is in line with management expectations for the half year,” said chief executive officer Steve McQuillan.

“I am also delighted that Austen Adams and his team in the PSRE division have completed the acquisitions of Hevac and HES.”

McQuillan said the businesses would strengthen Ormandy's offering as a “leading provider” of offsite and heat exchange solutions to commercial and industrial customers in the UK and internationally.

“The acquisitions will also enable us to take greater control over our supply chain and release untapped potential in the market, to further strengthen our position.”

Avingtrans said it would publish its results for the six months ended 30 November on 22 February, when it would also provide a further performance update.

At 1411 GMT, shares in Avingtrans were down 2% at 441p.

Reporting by Josh White for Sharecast.com.