SIMILAR to many other engineering companies, Avingtrans, over the past year, has seen its business and share price recover as the global economy climbed out of recession. Is this just a typical "cyclical recovery" with a return to pre-recession margins and turnover or has Avingtrans emerged from the recession with improved growth prospects?
Avingtrans, an Aim-listed company with a market cap of about 15m, is a precision engineering company that specialises in highly-engineered components with three main divisions: aerospace, energy and medical and industrial products.
The interim results were good and were accompanied by the guidance that the full-year numbers would be ahead of expectations and there is no reason to doubt that this will be the case.
However, it is Sigma China, part of the aerospace division, which has the most exciting prospects given the significant growth anticipated in the Chinese aerospace industry over the next two decades.
So Avingtrans is not just offering cyclical recovery it is more a case of "recovery plus" and I would be a "buyer".
Scotsman says BUY
• The value of your investments may fall and you may get back less than you invested. This does not constitute investment advice and you should take professional advice regarding the suitability of this company for your portfolio.
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