Avingtrans has issued a trading update confirming that group FY26e profit is in line with expectations. Across the Engineering business, contract momentum is strong, with wins spanning both core service lines (nuclear, infrastructure) and adjacent growth markets (data centres), and awards flowing from both longstanding client relationships and new partnerships. Whilst there are some puts and takes beneath the headline modest OE slippage in Engineering and revised Medical forecasts reflecting regulatory timing group profitability remains on track. Our unchanged FY26e forecast of £11.8m PBT represents 38% growth YoY; FY27e is also unchanged (+28% YoY) and we introduce FY28e forecasts (+26%). The one blemish is a $5m legacy repayment, interest and penalties related to a US Covid loan scheme, with no suggestion of wrongdoing and the balance sheet remains strong (net debt/EBITDA 0.6x FY27e). All in all, a confident update that gives us conviction in the trajectory ahead. Shares trade on a Mar27e PER of 16.1x dropping to 13.1x Mar28e undemanding given the growth opportunity.
