Hello Hermosil

Yes, The A-V used the Villiers MK2 Midget.
But, there is something ironical (situational irony).

The A-V changed ownership and lost its Villiers identity.
My best guess is that the 'Villiers' in 'Austral-Villiers' was
based on a commercial arrangement concerning exclusive use of
Villiers engines for a period.

I have found no closer connection between A-V and the Villiers Company.
Later A-V machines would come to use 4-strokes of Kirby or Briggs manufacture.

Such is life.
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Jack