Avingtrans (AIM:AVG), the advanced engineering group, is seeking to raise approximately £21 million through a placing, with net proceeds of around £19.9 million earmarked almost entirely for expanding its nuclear manufacturing capacity in the United States.
The bulk of the funds will be deployed at the company's Energy Steel facility in Rochester Hills, Michigan: approximately £7 million towards building out the site, £4 million on manufacturing equipment, £1 million on workforce expansion and training, £3 million for general working capital, and £5 million held as contingency.
The company's Advanced Engineering Systems division currently generates around £35 million in nuclear revenues; management project that figure can reach approximately £90 million over the next five years from already-identified business with existing customers, underpinned by structural demand for energy security, decarbonisation, and power infrastructure to support AI and digital transformation.
Separately, management's illustrative projections show Hayward Tyler, Avingtrans's pumps and motors unit that serves nuclear clients across the UK, US and elsewhere, could generate an additional £27 million to £45 million in revenue from the investment, translating to incremental EBITDA of between £9.6 million and £17 million by its financial year ending 2031.
A blue-chip institutional investor has committed up to £11 million as cornerstone, and chairman Roger McDowell is expected to participate for approximately £0.8 million, constituting a related-party transaction under AIM rules.
Results of the placing are expected on 14 July.
