Lion Rock
13 Nov 2015
Re: AGM Report tejo - please email me at [email protected]. Thanks
tejo
13 Nov 2015
AGM report Once again Lion Rock we are indebted to you for providing such a comprehensive report on the AGM The Company Secretary could well find it taking the place of his Minutes!The travails of Rolls Royce, a major customer, are on show for all to see and I imagine that tough cost savings will be required there.Despite the enthusiasm of the management and their hard work in dealing with the many problem that always seem to confront them and for which you rightly applaud, I still struggle to understand their strategic plan and the actions required to establish a long term sustainable growth business .I would like to see business plans that identify markets and the demand that will emanate from them by specific customers and where AVG can establish a dominant or at least a top three supplier position and with predictable income streams. I can see that nuclear decommissioning is one area but most activities and orders seem to arise from opportunistic bids. Is there a steady state business do you think or will it always be a rollercoaster?Of course, if I want re assurance, I should come to the AGMs and it is only ill health for my wife and I that prevents this. In the meantime, my sincere thanks again for keeping an eye on things and for your excellent commentaries.
Lion Rock
11 Nov 2015
AGM Report The AGM was as always an enjoyable one with many interesting things coming to the surface, and great scope for the future. The meeting scheduled to start at 11.15, was preceded at the request of the Chairman by a one minute silence at 11 minutes past, in memory of the fallen of conflicts since the Great War!There were less than 10 shareholders this year to hear a run down of the events of last year that represented a perfect storm for Avingtrans and how its effects were managed. The Chairman as normal rapidly despatched the formal aspects of the meeting before asking CEO Steve McQuillan to give a run down on events since the last AGMIn terms of the Aerospace business the destocking by Rolls Royce last year was in Rolls term quite small bur for those suppliers further down the supply chain its effects were much more dramatic. In the first quarter of the financial year the drop of business was about 50% recovering to 75% in the second quarter before returning largely to normal for the second half of the year. At the same time RMDG had just been acquired knowing that initially it would operate at a loss until rationalisation of current work had been completed in terms of agreeing new rates with customers for ongoing/new business. The transfer of the Derby site into Swadincote (RMDG) had been relatively painless and the site was now profitable - albeit currently in a small sense – from which it is expected to improve but above all no longer operating at a loss. All the major sites are now operating the Epicor system that is showing benefits with more to come through not least financial information on a month by month basis is now available in the first five days of the following month, where previously this was at least 15 days. Also it had allowed a lowering of stock levels on an ongoing basis by £½ m at Farnborough that will reduce working capital requirements. Further savings are expected at the other units as the system beds in properly, the smaller units will be equipped over the next two years incl the operating units in China. The Composites division whilst not yet profitable is losing far less that it has in previous years from acquisition, indeed the stand at the Paris Air Show was popular in terms of interest not least by some of the competitors intrigued by some of the products on display.. The manufacture of engine components in composite represents in general terms a 50% weight saving on its metallic equivalent and on a complete engine a total saving of some 5kg – not much in overall engine weight terms but significant saving on the overall average life of the engine. Interest aside from Rolls is also being seen from other engine manufacturers including SNECMA & Pratt & Whitney. Rolls are happy to pay much the same price for composite parts as they do for the metallic items that given the composite items are cheaper should see significant margins attainable. Further markets for composites outside of aerospace where weight saving is critical, includes the high end of the automotive world and also oil & gas where oil rigs can also be weight critical. R&D in this area has given rise to 3 patent acquisitions to dateThe Energy & Medical division also had a problematic start to the financial year in that having no sooner acquired Maloney Metalcraft the oil price collapsed and the expected future business in that arena disappeared with it. Notwithstanding this the costs of maintaining the unit in its current form was unsustainable so the decision was made to close the manufacturing side of the site and outsource future production.. As I suspected this was planned at the time of acquisition, for some point in the future but events brought this forward by virtue of necessity. In selling the site it was fortuitous that the new owners did not require the office complex that has allowed the engineering design team to remain where they are with little or no disruption so the team, comprising approx 30 staff with cons
Lion Rock
04 Nov 2015
Contract Win Commendable achievement in the Oil/gas sector given current conditions: [link]
Lion Rock
09 Oct 2015
Re: Results Update from Edison:[link]
Lion Rock
02 Oct 2015
Re: Results Hi tejo - Many thanks for your kind words, my resilient beliefs are I have to say formed from having got to know the Board very well over the last 8 years or so. You have to admit the problems this last 12 months were not of their making but were handled highly efficiently to contain the damage. Yes I will be at the AGM and would hope you might be also, if not please advise any questions or concerns you may have fort said event. Incidentally on gut feel I increased my holding a couple of days before results
tejo
01 Oct 2015
Re: results Thanks Lion Rock. It is only your resilient optimism that keeps us going on the journey to the promised land as mirages appear and vanish. I see that two brokers are enthused by seemingly brighter prospects ahead and the sp is up slightly. Hope for some concrete evidence given to you at the AGM. Thanks again..
Lion Rock
30 Sep 2015
Results! Given they had a double whammy from both segments (Oil Industry & Aerospace)I feel they did well to contain the damage that it wrought. Coupled with that knowing they would take a hit, perhaps in bringing forward pre conceived restructuring they took the opportunity to "kitchen sink " and get all costs out of the way.Some good long term orders in the pipeline coupled with a resurgent Crown that could see its prospects for a trade sale being brighter now should help to streamline things further.
Lion Rock
04 Sep 2015
Re: I wonder Tejo - Indeed China is one of the things I wish to ask but in a broader way, I will ask your question re currency issue. As far as I am concerned the Avingtrans management have proved themselves quite shrewd in managing the business which is why I have supported them throughout. Whenever problems have hit it is usually beyond their control but they have moved always smartly, to respond, given normal business conditions I believe they will come good. I hope your health improves to attend the AGM so that we can compare notes!!
tejo
03 Sep 2015
Re: I wonder Thanks Lion Rock. I had noticed that the Helium Special Situations Fund had increased its holding to over 7% which is encouraging. Hopefully, you will learn more about the overall situation at the AGM but one aspect that you might ask about is, of course, China. their operations there may be the key to their future growth and I wonder if the recent small devaluation will help or hinder AVG Orders for new aircraft seem to continue to boom and, in theory that should help the Signa operations. As always will be most interested to hear your commentary - ill health still somewhat incapacitating but one day I will get there, Oxala.
Lion Rock
03 Sep 2015
Re: I wonder Just found this posted yesterday re Avingtrans: Hedge fund star David Newton has ramped up his stake in Avingtrans from 1.77 million shares to 1.94 million @97p. Despite hard hits to SP in 2013 and 2014, analysts have begun lifting their forecasts with a target of 135-138p.
Lion Rock
02 Sep 2015
Re: Interesting Hi Tejo - I have to agree my tongue was heavily in my cheek when I wrote that, however there has been some sizeable awards over the year not least for Sellafield and I think given they are setting up a finishing facility in the area will have put them in a favourable light for the future.Results may not be sparkling but neither would I expect them to be a disaster given the changes over the past year, but of course I will advise you when I return from the AGM. Please advise any questions if you are unable to attend
tejo
28 Aug 2015
I wonder I would not take much comfort in 50p rise on tiny volume Lion Rock although I suppose that is better than nothing. A paucity of news or contract wins is disturbing and the sp has a lot of ground to make up. A lower value of the Chinese currency might help, but there again, it was a very small devaluation but enough to cause a panic on Wall street. I look forward to the results but without great expectations!
Lion Rock
27 Aug 2015
I wonder? Interesting.......it certainly appears that 100p is a definite support level. One might also notice the rise yesterday & today, only small perhaps but given results are due in 4-6 weeks does this bode well!!!!!!
Lion Rock
19 Jun 2015
Paris Air Show Contract Award Further progress........... [link]
