Interim Management Statement

RNS Number : 3162X

Avon Rubber PLC

06 February 2013

 



Strictly embargoed until 07:00 Thursday 7 February 2013

AVON RUBBER p.l.c. ("Avon", the "Group" or the "Company")

INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 OCTOBER 2012 TO 6 FEBRUARY 2013

Introduction

The financial year has started positively and the investments we have made and continue to make in innovative new products and to gain access to new markets have positioned us well to deliver further growth this year.

Protection & Defence

In Protection & Defence an improved order book was carried forward into this financial year and included the £14.7m Middle Eastern order announced in May 2012. This has resulted in a stronger first quarter performance compared to the previous year.

We have delivered M50 mask systems to the US Department of Defense (DoD) at a similar rate to 2012 and, despite continued uncertainty, we believe that we are well positioned and should not be significantly impacted by US Government cuts in the defence budget. We already have orders in hand for mask systems through to the end of our third quarter. As expected, we delivered 130,000 pairs of M61 filters during the period. We also secured orders for a further 100,000 pairs which we expect to deliver in our second quarter. So far sales to the US homeland security and first responder markets have been significantly stronger than in 2012.

Our first new product under Project Fusion  was launched during the quarter. The PC50 is an air purifying respirator targeted specifically at the US correctional facilities market. Project Fusion as a whole, which is expected to deliver further organic growth from 2014, remains on track.

Dairy

The Milkrite ImpulseAir mouthpiece vented liner continues to perform well and we have seen further quarter on quarter sales growth at our newly established Chinese operation.  

In other markets lower milk prices and higher feed costs in our traditional markets have reduced farmer revenues and margins, leading to fluctuating demand for our consumable products in the first quarter of our financial year. Planned new product introductions should provide opportunities for growth in the remainder of the year.

Net debt

The Group's balance sheet remains robust with net debt at 31 December 2012 at £10.1m (30 September 2012: £8.7m) due to the timing of working capital movements and the £1.8m of funding provided to the Employee Share Ownership Trusts to fund the purchase of the Company's shares for awards under the Performance Share Plan. 

Board changes

As previously announced Sir Richard Needham will retire as a Director at the conclusion of today's Annual General Meeting.

Outlook

Given the positive start to the year, the Board is confident of meeting full year market expectations, despite the challenges provided by the uncertain economic and political environment, particularly in the US.

Half Year announcement

The Group will announce its results for the half year to 31 March 2013 on Wednesday 1^st May 2013.

For further enquiries, please contact:

Avon Rubber p.l.c.
Peter Slabbert, Chief Executive	01225 896831
Andrew Lewis, Group Finance Director	01225 896830
Miles Ingrey-Counter, Company Secretary	01225 896850
Sarah Matthews-DeMers, Group Financial Controller	01225 896835
Weber Shandwick Financial
Nick Oborne	020 7067 0700
Stephanie Badjonat	020 7067 0700

NOTES TO EDITORS: Avon is focused on two specialist areas - Protection & Defence and Dairy

With over 120 years' experience, Avon Rubber p.l.c. is an innovative design and engineering group specialising in two core markets, Protection & Defence and Dairy. With a strong emphasis on research and development, we design, test and manufacture specialist products from a number of sites in the US and the UK, serving markets around the world.

Avon Protection is the recognised global market leader in advanced Chemical, Biological, Radiological and Nuclear (CBRN) respiratory protection system technology. Our unrivalled 80 year pedigree in military mask design and manufacture has placed Avon Protection's products at the heart of many international defence and tactical Personal Protective Equipment (PPE) deployment strategies. Our expanding global customer base now includes military forces, civil and first line defence troops, emergency service teams and industrial, marine, mineral and oil extraction site personnel. All put their trust in Avon's advanced respiratory solutions.

Our world leading Dairy business and its Milkrite brand have a global market presence. Our unique designs and innovative technology are described by one particular customer as "the biggest advance in the milking process in a generation". Working with the leading scientists and health specialists in the industry, we continue to invest in technology to further improve the milking process and animal welfare. As our market share and milking experience continues to grow so does our global presence.

For further information please visit the Group's website www.avon-rubber.com

 

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