AVG Avingtrans Plc

RNS Number:9323V
Avingtrans PLC
02 May 2007


                                 Avingtrans plc
                         ("Avingtrans" or the "Group")

                                 Trading Update


Avingtrans plc, the UK based engineering and technology group, today gives an
update on trading.

The Group has successfully reorganised itself into three divisions: aerospace;
medical & research; and industrial products, and the Board continues to believe
that such alignment will enable organic growth, synergies and cross selling
opportunities.

However, certain of the Group's companies in the second half of the financial
year to 31 May 2007 have not achieved the sales that the Board was expecting
and, as the Group's overheads are relatively fixed, the Board expects the
results for the year to 31 May 2007 to be behind its expectations.

Stainless Metalcraft (Chatteris) Ltd ("Metalcraft"), the Group company involved
in the provision of fabrication services and the specialist machining of large
components, has experienced a reduction in order uptake from one of its key
medical customers during the second half of the financial year to 31 May 2007.

As previously announced, Crown UK Ltd ("Crown"), the Group company specialising
in the design and manufacture of roadside camera and railway signalling pole and
support fabrication units, tendered to supply its products to three sections of
the West Coast Line. Crown is currently completing an order for one section of
the West Coast Line but the Board does not expect to receive orders for the
remaining two sections prior to 31 May 2007.

CH Precision Finishers Ltd ("C&H"), the Group company engaged in the final
polishing and specialist finishing on aeroengine turbine blades, compressor
blades and vanes for the power generation industries, has experienced supply
problems from a third party supplier and has subsequently been unable to carry
out its work on its client's products. The Board anticipates that its client's
supplier will have dealt with its problems and expects work at C&H to resume to
normal levels shortly.

The Board is confident that the Group will make progress in the year to 31 May
2008 and the Group's order book remains at record levels. The Group has
identified a number of new business opportunities and specifically, the
strengthening of the aerospace division continues with the Group company, Sigma
Precision Components Ltd, officially opening its facility in April 2007 and has
recently achieved AS9100 accreditation. However, the Board believes that the
reduction in order uptake experienced by Metalcraft will continue into the year
to 31 May 2008 and that following a review of the business operations at the
recently acquired B&D Patterns Ltd ("B&D"), the Group company specialising in
rigid and flexible pipe assemblies and components for aerospace applications,
the Board believes that B&D's operations will not expand in the year to 31 May
2008 as the Board had originally expected.


For further information, please contact:

Avingtrans plc                                      Tel: 01159 499 020
Ken Baker, Chairman
Steve Lawrence, Managing Director

KBC Peel Hunt Ltd                                   Tel: 020 7418 8900
David Anderson


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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