(An item published 0851 BST Wednesday misstated the name of the business being acquired in the headline. The correct version follows.)
LONDON (Alliance News) - Avingtrans PLC Wednesday said it has struck a deal to acquire the trade and certain assets of Tricorn Group PLC subsidiary RMDG Aerospace for GBP1.1 million and said its full-year results are set to be in line with market expectations.
Components manufacturer Avingtrans said the deal would strengthen its Sigma Components aerospace division and would add new customers to its portfolio. It will fund the deal through existing debt facilities.
Avingtrans also provided a trading update on Wednesday, saying results for the year to 31 May were broadly in line with market expectations as its benefited from a slightly lower-than-anticipated tax rate.
It said it has seen some rescheduling of orders by key customers in recent months, reflecting market conditions, and said the strength of sterling is having a short-term impact on its business.
But it expressed optimism for the future, saying recent contract wins, including the added business from the RMDG acquisition, will enhance its prospects.
Avingtrans shares were down 3.7% to 145.84 pence early Wednesday, while Tricorn shares were untraded, quoted at 19 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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