Avingtrans – ahead of Interim Results, shares ‘top-sliced’ after strong price run, now 570p, new SQC Target Price 680p

Mark Watson-Mitchell – 23.02.2026

This coming Wednesday morning, 25^th February, will see Avingtrans (LON:AVG), the specialist precision engineering group of companies, announce its Interim Results for the half-year to end-November 2025 – they should be good and help investors to realise its potential going forward.

It has built up over the last three decades through making acquisitions of companies that need tighter management, that can be built up and able to be sold off in due course.

Those purchases have fallen into business units inside three distinct sectors – energy, medical and industrial.

About Avingtrans

Operating on a global basis, Avingtrans designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy, medical and industrial markets. 

Group Business Units

Hayward Tyler - Luton, East Kilbride UK, USA, China and India

Specialises in the design, manufacture and servicing of performance-critical motors and pumps for challenging environments. 

Energy Steel, Inc - Rochester Hills, Michigan, USA

Provider of custom fabrications for the nuclear industry, specialising in: OEM parts obsolescence; custom fabrications; engineering design solutions; product refurbishment; on-site technical support. 

Stainless Metalcraft Ltd - Chatteris, UK

Provider of safety-critical equipment for the energy, medical, science and research communities, worldwide, specialising in precision pressure and vacuum vessels and associated fabrications, sub-assemblies and systems. 

Booth Industries - Bolton, UK

Designs, manufactures, installs and services doors and walls which can be tailored to be: blast and explosion proof; fireproof; acoustically shielded; high security/safety; or combinations of the above.

Ormandy Group - Bradford, UK

Design, manufacture and servicing of off-site plant, heat exchangers and other HVAC (heating, ventilation and air conditioning) products.

Slack & Parr - Kegworth, UK, USA & China

Design, manufacture and servicing of high-precision gear metering pumps, hydraulics flow dividers and industrial pumps.

Composite Products Ltd - Buckingham, UK

Centre for composite technology, parts and assemblies, serving customers in industrial markets.

Adaptix Ltd - Oxford, UK

Adaptix has developed novel 3D X-ray for Orthopaedic and Veterinary applications amongst others. Commercialisation of this system (and others) is on-going.

Magnetica Ltd - Brisbane, Australia

Magnetica Limited specialises in the development of next generation MRI technologies, including dedicated extremity MRI systems and MRI system components.

Magnetica has successfully built and tested a compact, integrated 3 Tesla orthopaedic MRI system, demonstrating clinical-quality imaging.

Commercialisation of this system (and others) is on-going.

Magnetica's structure now includes two other business units: 

Scientific Magnetics - Abingdon, UK

Designs and manufactures superconducting magnet systems and associated cryogenics for a variety of markets including MRI and provides services for Nuclear Magnetic Resonance instruments.

Designs, manufactures and installs instrumentation, including consoles, system upgrades, and probes, mainly for Magnetic Resonance Imaging and Nuclear Magnetic Resonance systems.

Latest Trading Update

On Wednesday 21^st January, the group issued a Trading Update for the six months to end-November 2025, declaring that trading was in line with management expectations, with positive momentum continuing across the group, particularly in AI and Data Centre driven markets, and a resurgence in nuclear power, though significant growth effects are anticipated from FY27.

The company is confident in meeting FY26 market expectations and is engaged in positive discussions for contracts likely to commence in FY27.

Management Comment

CEO Steve McQuillan stated that:

"We are pleased to note the positive momentum continuing across the Group, particularly for those group businesses that are supplying products into AI and Data Centre driven markets, as well as the associated resurgence in nuclear power, albeit that the main growth effects of these tailwinds will not be seen until FY27 and beyond.

The recently announced tie-up between TerraPower and Meta is exciting for next generation nuclear prospects.

We are also delighted to welcome Stuart Gall as CEO of the Medical and Industrial Imaging division earlier than expected.

Stuart's appointment provides us with a seasoned head to look afresh at the strategies and development plans for Adaptix and Magnetica, as we seek to bring innovative medical imaging at the point of care to global markets.

We remain confident in our ability to meet market expectations for FY26 and this reflects our ongoing commitment to delivering value and achieving our strategic objectives.

The opportunity pipeline remains buoyant and the Group is in positive discussions with a number of new and existing customers regarding contracts that are likely to commence in FY27."

The Equity

There are some 33.09m shares in issue.

The larger holders include Harwood Capital (12.07%), BGF Investment Management (7.13%), Downing (5.91%), Unicorn Asset Management (5.58%), TrinityBridge (5.42%), Roger McDowell (4.25%), JTC Plc (2.99%), Steve McQuillan (2.44%), Stephen King (2.02%), and Canaccord Genuity Wealth (0.32%).

Broker Views

The consensus average Target Price is 587p, the Highest being 600p, the Lowest 575p.

At Singer Capital Markets, analysts Caroline de La Soujeole and Henry Carver rate the shares as a Buy, with that 600p Target Price.

For the current year to end-May 2026, they expect revenues of £175.0m (£156.4m) and adjusted pre-tax profits of £11.8m (£8.6m), lifting earnings to 30.5p (24.0p) and increasing its dividend to 5.10p (4.90p) per share.

For the 2027 year, their estimates are £193.2m sales, £15.1m profits, with 37.8p earnings and a 5.30p dividend.

They state that:

“In our view, the share price fails to reflect the potential value in the Group ahead of expected realisations as AVG moves towards the exit phase of its strategy for a number of its businesses.

No changes to FY26 forecasts, supported by a “buoyant pipeline” with increased confidence about FY27 numbers.”

David Buxton, at Cavendish Capital Markets, has a 575p Target Price on his Buy note, in which he states that:

“Even after the recent outperformance, the current valuation suggest Avingtrans is being valued at a 10% discount to peers with Imaging thrown in for free - clearly this is not correct!

We believe there is significant unrealised value to be had, both with the prospect of possible profitable engineering disposal but also a significant opportunity in Imaging.”

His estimates for 2026 are for £175.0m revenues, £11.8m profits, 30.3p earnings and paying a dividend of 5.1p per share.

For the coming year, he estimates £193.4m sales, £15.0m profits, 37.1p earnings and a 5.4p dividend.

My View

This time last year, this group’s shares were down to 343p, since when they have risen substantially to peak at 616p a month ago, before easing back to the current 570p – presumably on the back of pre-results profit-taking.

They could well fall back to trade the 550p to 575p range after the Interims, before moving strongly ahead again.

The Stainless Metalcraft subsidiary supports customers with specialist components for a wide range of performance-critical sectors including nuclear, traditional and renewable energy and power generation, data centres, medical, big science, submersibles and marine applications.

I now set a new Target Price of 680p.

(Profile 04.11.20 @ 260p set a Target Price of 325p*)

(Profile 29.02.24 @ 350p set a Target Price of 437p*)

(Profile 23.02.26 @ 570p set a Target Price of 680p)