Avingtrans - Interims see broker up its TP to 681p (575p), reflecting the acceleration of its nuclear prospects, shares 565p

Mark Watson-Mitchell
15 hours ago
3 min read

Mark Watson-Mitchell - 25.02.2026

This morning's Interim Results announcement from Avingtrans (LON:AVG) should be well received by the market.

In reaction, the group's broker has increased its Buy note Target Price to 681p from 575p previously.

Operating on a global basis, the £187m-capitalised group designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy, medical and industrial markets.

Interim Results

The reported interim results to end-November 2025, reported revenue remaining flat at £78.1m, however its gross margin improved to 31.7% and adjusted EBITDA increased by 10.4% to £9.6m, driven by reduced losses in the Medical and Industrial Imaging division.

Adjusted profit before tax rose by 27.1% to £5.7m, and adjusted diluted earnings increased to 14.6p per share.

The company also saw a stronger cash inflow from operating activities of £7.6m, with net debt unchanged at £12.3m, and declared an interim dividend of 2.0p per share.

The Advanced Engineering Systems division secured significant new nuclear contracts worth $16.0m, and the Medical and Industrial Imaging division is seeing momentum with Adaptix receiving US FDA approval.

The group's Management reported that it remains confident about the outlook for the full year.

Management Comment

Commenting on today's results, Chairman Roger McDowell stated that:

"A strong first half performance from the Advanced Engineering Systems (AES) division has primed the Group to achieve full year expectations, with Medical and Industrial Imaging sales also building momentum.

Prospects for AES are exciting, driven by global energy demand - especially in next generation nuclear power, which is in turn driven by the underlying rapid global growth in AI and data centre infrastructure and electric vehicles.

In the period, we were delighted to have Austen Adams formally join the Board as Chief Operating Officer (COO).

We continue to invest in AES and in the MII division.

We remain well structured for future exits, intended to maximise shareholder value.

The commercialisation of the 3D X-ray systems at Adaptix, for applications in orthopaedic, veterinary, and non-destructive testing markets, is now able to build, with the 510(k) for the orthopaedic system finally granted and thus allowing US sales to commence.

We remain excited by the prospects for Adaptix and Magnetica, despite the delays in the regulatory processes.

With Stuart Gall joining as MII CEO, the management team is now complete and has all the necessary experience to build robust sales in the USA.

Overall, our value creation objectives remain on course, supported by a prudent approach to debt management, which the Board considers appropriate, given on-going global uncertainties.

However, the dynamic nature of our markets means that Avingtrans remains committed to pursuing carefully selected M&A opportunities, as well as carefully marshalling our more mature businesses towards Exits, in line with our PIE strategy.

We remain positive about our prospects and the potential future opportunities across all of our markets and excited to see both the potential and the accelerating pace of our new nuclear and medical imaging prospects.

We benefit from clear visibility over the revenue and profits of the second half of FY26, thanks to an ongoing strong order intake and timely contract revenue recognition.

Therefore, the Board continues to be confident about the Group expectations for the full year and views the mid to longer term future very positively."

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's View

Analyst David Buxton at Cavendish Capital Markets has today increased the Target Price for his Buy note on the group, from 565p to a substantially higher 681p, he states that:

"Interim results show a strong performance, with management signalling the group remains on track to achieve existing expectations.

AES has posted margin gains on a solid revenue base with a better margin mix of aftersales revenues.

Imaging continues to build commercial momentum, with a lower loss than we anticipated helping deliver 22% EPS growth.

The AES order book has seen strong order intake and has an order book that 95%+ covers FY26 expectations.

The shares remain attractive despite their recent strong performance.

Our sum-of-the-parts calculation suggests significantly higher fair value.

We raise our target price from 575p to 681p, reflecting accelerating medium-term nuclear prospects and commercial progress at Imaging and underwriting our maintained Buy rating."

His estimates remain unchanged.

My View

A very encouraging set of Interims.

In my article on Monday of this week, I set a new Target Price for the shares and stay very confident of its achievement.