Interim Management Statement

RNS Number : 8326L

Avon Rubber PLC

16 August 2013

 



Strictly embargoed until 07:00 Friday 16 August 2013

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

INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 APRIL 2013 TO 15 AUGUST 2013

Introduction

The Group has continued to make good progress and expects to deliver full year results in line with market expectations.

Protection & Defence

In the US, M50 mask systems have been delivered to the Department of Defense (DOD) at a similar rate to that achieved in the first half of 2013 and we have orders in hand for mask systems through to the end of our financial year. Since the half year, we have delivered 132,000 pairs of M61 filters and expect to be able to deliver a similar number in our fourth quarter. DOD orders overall in the current year have, as anticipated, reflected US political and economic uncertainties but we expect a return to prior year levels during 2014.

In line with our strategy to develop non DOD markets, year to date sales to foreign military, US homeland security and first responder markets have been significantly stronger than in 2012. 2013 started with a healthy opening order book and there has been a strong order intake since then.

Project Fusion remains on track. Our Deltair SCBA product for firefighters and our range of CBRN filters have been submitted for regulatory testing and are expected to be available for sale later this calendar year. 

In what has been a historically volatile business, the hovercraft skirt and fuel and water storage tank business, Avon Engineered Fabrications (AEF), has won new military business that can be supplied during the current financial year.

Dairy

Sales of the Milkrite ImpulseAir mouthpiece vented liner continued to grow in the US, despite the US dairy market remaining depressed by falling milk prices and high feed costs causing farmers to reduce expenditure on consumable items. This, together with the success of our Milkrite brand, has resulted in lower sales to our OEM customers. In the European market, the business has delivered year on year growth and we have seen further quarter on quarter sales growth in the Chinese operation. 

The launch of our innovative milking cluster exchange service has been delayed slightly. It will launch in the key Californian market in the current financial year and provide a sound platform for growth in 2014. 

Net debt

The Group's balance sheet remains robust with net debt at 30 June 2013 of £11.4m (30 September 2012: £8.7m). As previously announced, during the period, the Group purchased a building in Mississippi for AEF and acquired 100% of the shareholding of VR Technology Holdings Limited. These two transactions added £3m to net debt.

Outlook

The strong performance in Protection & Defence, in particular at AEF, has compensated for the slower than expected market in the dairy sector and the Board remains confident that the Group will meet full year market expectations.

The Board also continues to believe that the investments we have made and continue to make in innovative new products and in opening new market opportunities will deliver enhanced growth in the years to come.

Full Year announcement

The Group will announce its results for the financial year ending 30 September 2013 on Wednesday 20^th November 2013. 

For further enquiries, please contact:

Avon Rubber p.l.c.
Peter Slabbert, Chief Executive	01225 896831
Andrew Lewis, Group Finance Director	01225 896830
Sophie Williams, Group Public Relations Manager	01225 896563
Weber Shandwick Financial
Nick Oborne	020 7067 0700
Stephanie Badjonat	020 7067 0700

NOTES TO EDITORS: 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 in the UK, serving markets around the world.

Avon Protection is the recognised global market leader in respiratory protection system technology, specialising primarily in military, law enforcement, firefighting, and industrial markets. With an unrivalled pedigree in mask design dating back to the 1920s, Avon Protection's advanced products are the first choice for Personal Protective Equipment (PPE) users worldwide.

Avon Protection's expanding global customer base now includes military forces, law enforcement teams, firefighters, other first responders and industrial, marine, mineral and oil extraction site personnel. All put their trust in Avon's advanced respiratory protection solutions to shield them from every possible threat.

Our world leading Dairy business, Avon Dairy Solutions, and its Milkrite brand, have a global market presence. Our unique designs and innovative technology have been 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 at www.avon-rubber.com

 

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