Avingtrans (AVG ) has announced its participation in a £12.9m fund raise by emerging medtech Oxford-based leader, Adaptix, whereby the company will invest £2.5 million.
In its latest round of funding, Adaptix is raising up to a total of £12.9m of new funds, including £2.5m from Avingtrans. In return for the investment, Avingtrans will own approximately 5.9% of the total issued share capital of Adaptix, post the closing of the fund raise.
The Group, which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, explained that Adaptix is focused on transforming radiology, by allowing low-cost, low-dose 3D portable imaging.
To date, the Oxford-based company has developed a number of novel technologies and imaging approaches in relation to Digital Tomosynthesis (“DT”), a new X-ray-based imaging technique that allows image enhancement with minimal increase in radiation exposure.
Its technology holds the ‘Flat Panel X-ray Source’ which consists of a monoblock containing an array of individually controlled X-ray emitters combined with a high-voltage power supply.
Avingtrans, through its majority-owned-subsidiary Magnetica (“MNA”), intends to collaborate with Adaptix, to develop a disruptive business offering which will ‘bring together low-cost 3D imaging in the form of MNA’s Cryogen-free MRI and Adaptix’s DT, to allow fusing of the image data, giving enhanced low-cost diagnostic capability, initially for orthopaedic imaging,’ it noted.
It said this target markets include some 28,000 US sites focused on minor injuries (urgent care) and private orthopaedic practices (private practices and ambulatory surgical centres).
The Company highlighted to its shareholders that the purpose of the collaboration is ‘to create a broader offering to customers than is delivered by each business alone and ultimately to bring together low-cost 3D MRI, X-ray and potentially ultrasound, in a solution which can address a significant proportion of all medical and veterinary imaging procedures.’
Steve McQuillan, CEO of Avingtrans, commented: “We are excited by the prospect of Magnetica working with the team at Adaptix, to our mutual benefit. As fellow travellers on parallel disruptive medical imaging paths, we believe that working together will deliver cost and market synergies for both businesses to enhance potential shareholder value, through better quality and flexible multi-modal imaging, enhancing the end customer experience.”
Mark Evans, Chief Executive Officer of Adaptix, said: “Our vision is to offer multi-modal 3D imaging to under-served medical markets in major economies focused on extremity imaging, which will be driven by a ‘Pay-per-Study’ business model.
He added, “Our competitive advantage will be facilitated by: the low cost of the equipment, protected and enabled by proprietary technology; equipment that does not need high-cost rooms and installation; and portability that enables equipment to be cheaply redeployed and therefore, facilitates new service models. We believe that by working with Avingtrans and Magnetica, we will be able to deliver a unique proposition to the medical imaging market.”
Last month, Avingtrans said it ended FY21 with “record adjusted profits and a solid cash position” after revenue from continuing operations rose by 7.1% to £98.5m from £92m in FY20. Its set of results prompted the Board to reintroduce a full year dividend of 4p a share.
In its recently published preliminary results for the year ended 31 May 2021, the Company reported record profits following the disposal of Peter Brotherhood in March 2021 for £35m.
As a result of the positive set of results, the Board of Avingtrans has reinstated the full year dividend to propose a dividend of 4.0p per share. Looking ahead, the Company informed investors that it also intends to reinstate progressive interim and final dividends for FY22.
During the period, Avingtrans reported record adjusted EBITDA from continuing operations which increased by 78.5% to £12.5m, up from £7.0m in FY20. Profit before tax increased to £7.7m (FY20: £2.6m) while diluted earnings per share were boosted to 22.4p (FY20: (8.0p).
Commenting on the results, Roger McDowell, Chairman of the Group, hailed the Company’s Pinpoint-Invest-Exit Strategy (“PIE”) which he stated had proven its worth with the successful sale of Peter
Brotherhood which enabled the delivery of “excellent returns” for shareholders.
Avingtrans said it continues to invest in its three divisions, with a focus on the global energy and medical markets, to position them for maximum shareholder value via eventual exits.
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