Trading Statement

Avingtrans PLC 18 December 2007 AVINGTRANS plc Trading Update Following the conclusion of the first half ended 30 November 2007 it is now clear that the Board's earlier optimism for the full year to 31 May 2008 has faltered. The state of the Group's orderbook earlier in the year underpinned the Board's confidence that the Group's overall result for the year would be sufficient to offset the disappointing performance within the aerospace division which we have previously reported. The current state of the orderbook no longer provides such underpinning. As a result the Directors expect that, whilst profitable at the pre-tax level on a Group-wide basis, the Group's overall performance for the full year to 31 May 2008 will fall significantly short of our expectations. With the help of an encouraging performance in the industrial division during the first half of the financial year the Directors also expect to report a pre-tax profit at the interim stage, albeit at a level which also falls short of our previous expectation. On a more encouraging note, the Directors are optimistic of an improved half on half performance during the remainder of the current financial year on the back of a number of interesting opportunities which are currently under consideration. The Directors expect to announce the first half results in February 2008. The problems within the aerospace division have already been highlighted to the market. These relate to contractual terms on certain important supply contracts at B&D yielding negative margins during the first half of the year on a material part of the division's business. In recent weeks prices have been renegotiated with the customer concerned. Whilst material improvements on future deliveries have been achieved, no retrospective support has been agreed to. As a result the aerospace division was loss making in the first half of the year. This contract will end during the current financial year. Board changes After 5 years with the Group Steven Lawrence, Managing Director has decided to leave the company by the end of May 2008. The Board is actively seeking a replacement and has identified a potential candidate. Once negotiations are completed a further announcement will be made. Enquiries: Avingtrans plc 01159 499 020 Ken Baker, Chairman Stephen King, Finance Director KBC Peel Hunt Ltd (Nominated Adviser & Broker) 020 7418 8900 Julian Blunt or David Anderson This information is provided by RNS The company news service from the London Stock Exchange

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Avingtrans (AVG)
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