Avingtrans – the Finals next week could see its shares blast above analysts' expectations
Mark Watson-Mitchell - 22.09.2026
A sign that should always please investors is when a fund-raising is ‘oversubscribed’ by both existing and a large number of new institutional investors.
Such was the case with Avingtrans (LON:AVG) when in the second week of July it sought to raise £21m of fresh cash to help fund various parts of its business.
It provides Avingtrans with the resources to accelerate its US expansion plans for the expansion of a Michigan facility, a key strategic asset that will enhance its manufacturing capacity and support the growth of its North American operations.
The £267m-capitalised group is involved in the design, manufacture and supply of critical components, modules, systems and associated services to the energy, medical and industrial sectors.
In fact, the non-discounted fundraise was a massive three times oversubscribed, - that really is a strong pointer that the group’s Management is getting its strategy for further growth totally on the right track.
In reaction to such strength the group’s shares have risen from the early July funding price of 630p to 725p now – it is worth noting that at the start of this year they were 470p!
The Business
Avingtrans designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy, medical and industrial markets worldwide.
Its business units are as follows
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, manufacturers 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. Tecmag Inc - Houston, USA Designs, manufactures and installs instrumentation, including consoles, system upgrades, and probes, mainly for Magnetic Resonance Imaging (MRI) and Nuclear Magnetic Resonance (NMR) systems |
Latest Update
On Wednesday, 24th June, Avingtrans issued a Trading Update for the year to end-May, stating that it expected profit to be in line with market expectations and reporting significant contract awards.
The Advanced Engineering Systems division secured a $4m contract with KHNP for nuclear power station spare parts and a $1.8m order from BWX Technologies for reactor components, alongside a £2m contract for HS2 infrastructure.
The Medical & Industrial Imaging division's revenues were lower than anticipated due to regulatory clearance timing, though its Adaptix Ortho350 received FDA and CE certification.
Avingtrans also faces a repayment of approximately $5.0m for previously forgiven Paycheck Protection Program loans, which it will not contest.
Management Comment
CEO Steve McQuillan stated that:
"We are pleased to have continued our positive momentum, securing a number of strategically important contract awards across our core markets.
These awards reinforce our strong positions in the global nuclear and infrastructure sectors, while our first order from BWX Technologies demonstrates the success of our efforts to access attractive new markets.
We are also encouraged by the progress being made in the data centre sector, where growing revenues and a strengthening opportunity pipeline provide increasing visibility of future growth opportunities."
The Equity
There are some 37.37m shares in issue.
The larger holdings include Harwood Capital LLP (4.87%), TrinityBridge Ltd. (4.88%), Unicorn Asset Management Ltd. (4.50%), Octopus Investments Ltd. (4.07%), Downing LLP (3.98%), BGF Investment Management Ltd. (3.97%), JPMorgan Asset Management (UK) Ltd. (2.40%), Montanaro Asset Management Ltd. (1.35%), Corient Investment Management Ltd. (1.20%), and Threadneedle Asset Management Ltd. (1.04%).
Brokers Views
At Singer Capital Markets its analysts Caroline de La Soujeole and Henry Carver rate the group’s shares as a Buy, with a 770p Target Price.
They were impressed by the early July £21m capital raising to fund to a new nuclear manufacturing facility in Michigan, alongside associated equipment, workforce expansion and working capital.
For the year to end-May 2026, they look for revenues of £163.0m (£156.4m) and adjusted pre-tax profits of £11.8m (£8.6m), lifting earnings up to 30.3p (24.0p) and increasing its dividend to 5.10p (4.90p) per share.
For the 2027 year, their estimates are £187.7m sales, £15.3m profits, with 35.4p earnings and a 5.30p dividend.
Jumping ahead to 2028 the analysts estimate £219.5m revenues, £20.6m in profits, 45.2p of earnings and 5.50p per share dividend.
David Buxton, Director of Research at Cavendish Capital Markets, also has a 770p TP on his Buy note.
With very similar sales and profits estimates, he considers that the new US facility will considerably increase the group’s capabilities and opportunity to maximise the potentially sizeable growth opportunity emerging as AI and data centres drive structural growth and changes in the US energy generation market.
My View
I really like this group’s mix and note the increase of its secure strategically significant contract awards across its core nuclear and infrastructure markets, while also making encouraging progress in expanding its presence in adjacent growth sectors.
Despite the share price rise this year, I believe that Avingtrans offers a useful upside for patient growth investors.
The Finals to end-May, which will be announced on Wednesday 30th September, are expected to be accompanied by a positive statement on the group’s current trading.
The shares, now 725p, could easily surpass the analysts’ 770p Target Prices.
(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)
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