Today’s pre close update (May Y/E) confirms record FY24 group sales, in line with expectations with a material EBITDA beat (c.34% at the mid-point of the new £13-14m guidance range). We have upgraded our FY24 forecasts accordingly. We leave FY25 unchanged for now but note that the new financial year is said to have started well. Upgrades to FY24 reflect both strong operational momentum in the core Engineering businesses as well as some moving parts (negative & positive) in Medical. FY25 is also said to have started strongly. FY24e net debt, which had been in focus at the interims, is now expected to be c.£6.1m, better than the £7.3m we had forecast. Avingtrans’ management has an excellent track record of creating shareholder value, driven by a focussed and successful Pinpoint-Invest-Exit strategy. We have every reason to believe this can be enduring. BUY rec reiterated.
