Interim Results

RNS Number : 3617V
Avon Rubber PLC
28 May 2008
 




Avon Rubber p.l.c.


Strictly embargoed until 07:00 28 May 2008


Unaudited interim results for the six months ended 31 March 2008



31 March 2008


£Millions

31 March 2007

(restated)

£Millions

CONTINUING OPERATIONS



    REVENUE

23.4

31.2

    OPERATING (LOSS)/PROFIT

(1.9)

0.5

(LOSS)/PROFIT FOR THE PERIOD

(5.9)

0.1

(LOSS)/EARNINGS PER SHARE:



    Basic

(20.7)p

(0.5)p

    Continuing operations

(6.1)p

3.6p




  • US$112 million US Government multi-year respirator contract confirmed

  • Continued demand from UK MoD for current generation respirators

  • Demand for the new C50, FM53 and ST53 respirators and EH15 emergency hood is growing in markets around the world

  • Dairy business performed well

  • Aerosol gasket business sold

  • European mixing facility to close

  

Commenting on the results, Peter Slabbert, Chief Executive said: 'The award of the $112 million, multi-year contract by the US Government should underpin the Group's return to profitability in the short-term and secure a long-term and growing revenue stream for our Protection business. Our immediate priority is on increasing our profits through manufacturing efficiencies and cost reductions and converting significant opportunities for sales of our market leading range of respiratory protection products around the world. 

The first half year has seen an improved performance from our already successful Dairy business and we expect this to be maintained. We further expect to secure long-term contracts for our Engineered Fabrications business which will provide benefits in 2009. 

The Board is confident that the foundations are in place for a period of sustainable and profitable growth.'


For further enquiries, please contact:


Avon Rubber p.l.c.


Peter Slabbert, Chief Executive

020 7067 0700


(until 1.00pm)


From 29 May: 01225 896 831

Fiona Stewart, Corporate Communications Executive

01225 896 871



Weber Shandwick Financial


Richard Hews

020 7067 0700

Rachel Martin


Hannah Marwood 



An analyst meeting will be held at 09:45 for 10:00 am this morning at the offices of 

Weber Shandwick Financial, Fox Court, 14 Gray's Inn RoadLondonWC1X 8WS


NOTES TO EDITORS:  Avon Rubber p.l.c. is an international polymer engineering group adding value through material, manufacturing and industry sector expertise. The Group is currently capitalised at approximately £34 million. Avon supplies a range of advanced CBRN respiratory protection solutions through Avon Protection Systems Inc. to the world's military and police forces, as well as first responders and emergency services. Avon Rubber p.l.c. owns Avon-ISI, which designs, develops and manufactures a range of SCBA equipment for fire, rescue and law enforcement, as well as military applications. Avon Rubber p.l.c. also owns Avon Engineered Fabrications manufacturing products including hovercraft skirting and flexible storage tanks and a world leading dairy business manufacturing dairy liners and tubing.

  Interim statement


INTRODUCTION

The delayed award by the US Government of the $112 million production contract for the M50 respirator announced on 19 May was welcome news for the Group. In the period to 31 March 2008our Dairy business performed well, but in our Protection & Defence business, the delay in the M50 full rate production order and production difficulties in producing filters at the new Cadillac facility, contributed to a disappointing overall operating loss of £1.9m (2007: £0.5m profit). We have completed the lengthy strategic refocusing of our business to two sectors, Protection & Defence and Dairy with the sale of our aerosol gasket business announced in February and the decision to close our European mixing plant which was announced in January.


RESULTS

Revenue from continuing operations fell in the half year to £23.4m (2007: £31.2m) despite increased revenues from the Dairy business. We incurred an operating loss of £1.9m (2007: £0.5m profit) on these revenues. Net interest was unchanged at £0.4m and the non cash finance credit on our net retirement benefit surplus reduced to £0.6m (2007: £1.3m) due to changed actuarial assumptions. This resulted in a loss before tax of £1.8m (2007: £1.3m profit) and after a tax credit of £0.1m (2007: £nil) the Group incurred a loss for the period from continuing operations of £1.7m (2007: £1.3m profit).


A loss of £4.2m (2007: £1.2m) was incurred on discontinued operations, including £0.6m attributable to the loss on disposal of the aerosol gasket business and £2.6m to the closure of the mixing plant. The Group loss for the period was £5.9m (2007: £0.1m profit). The basic loss per share was 20.7p (2007: 0.5p) and the loss per share from continuing operations was 6.1p (2007: 3.6p earnings per share).


Net debt increased from £10.4m at the 2007 year end to £13.5m at 31 March 2008Inventories in particular increased during the period as we manufactured product and bought raw materials in anticipation of increased revenues in the second half of the year. Operating activities absorbed £2.3m (2007: £4.2m) resulting from the loss incurred and working capital which increased by £0.9 million ithe continuing operations. The net proceeds from the sale of the aerosol gasket business of £1.6m and further asset sales generated net cash from investing activities of £0.7m (2007: cash outflow of £3.4m) after capital expenditure of £1.3m (2007: £3.4m). This reduced level of capital expenditure follows the high spend in the past few years on both the development of new products and the Cadillac facility. 

  

PROTECTION & DEFENCE

The delay in the award of the M50 long-term production contract initially anticipated in the early part of this calendar year had a significant negative impact on the new Cadillac facilityThe growth of this business, however, is now underpinned by this order for 100,000 respirators per year, which we expect will be supplemented by a further contract option allowing for potential additional volumes of 200,000 per annum for a period of up to 10 years. We expect these mask systems orders to be supplemented by significant filter and spares orders.

Difficulties with producing filters supplied with M50 respirators on the low rate initial production order contributed to cost overruns in the new Cadillac facility which delayed delivery of complete systems to the customer. Good progress has been made on resolving these production problems and the balance of this order will now be shipped in the early part of the second half of the year. While we are currently production capable, we have to invest heavily - at short term cost in order to ensure consistency and quality of output which will benefit us over the 10 to 15 year production life of this new product range.

The performance of the Avon Engineered Fabrications business in Mississippi was affected by delays to new long-term contracts due to factors outside our control. These orders are still expected although the timing is uncertain. 

At Avon-ISI, which supplies self contained breathing apparatus (SCBA), the new US National Fire Protection Association approved Z Seven SCBA has been well received by the market. Following the delayed approval in October and a period of sample production and evaluation, we have experienced a significant level of enquiries and orders towards the end of the financial half year. Our UK Protection business benefited from continuing demand from the UK MoD and performed satisfactorily. Their focus includes selling our full range of respiratory protection products to markets around the world and the level of enquiry and opportunity indicates high potential demand for our new C50, FM53 and ST53 respirators and EH15 emergency hood.

Total revenues for the division were £12.2m (2007: £19.3m) incurring an operating loss of £3.4m (2007: £0.8m). In preparation for future volume growth our current cost base is significantly underutilised and the contribution from incremental revenues will therefore directly impact future operating profits. 


DAIRY

The healthy profit and cashflows from our Dairy business continue to underpin the Group's performance. Revenues increased by 12.1% to £10.8m (2007: £9.7m) with improvement in both the US and European businesses. Higher milk prices and growth in sales of our own branded products, particularly into new markets such as China, were both positive factors. Despite higher input costs driven in particular by the oil price, we saw some benefit from lower overhead costs in our UK production facility resulting in a higher operating profit of £1.8m (2007: £1.3m).


DIVIDENDS

In view of the below expectation first half year results together with the Group's short-term working capital funding requirement as we build up to full production volumes on the US Government contract,  the Board feels it is prudent not to pay an interim dividend for this year. It is our intention to resume dividend payments as soon as the trading results and liquidity position allow us to do so.

 

BOARD AND MANAGEMENT CHANGES

Terry Stead stood down as Chief Executive on 21 April 2008 and has been succeeded by Peter Slabbert, previously Group Finance Director and acting head of rest of world sales for the Protection businessA new Finance Director will be appointed in due course and we are also taking steps to strengthen the sales and marketing function. This, together with the appointment of David Evans as a Non-Executive Director, means that the Group's restructuring is largely complete and we now have an excellent team experienced in the high value added Protection & Defence and Dairy businesses who are closely focused on delivering the benefits from the substantial opportunities in these markets. 

 

OUTLOOK

The award of the $112 million, multi-year contract by the US Government should underpin the Group's return to profitability in the short-term and secure a long-term and growing revenue stream for our Protection business. Our immediate priority is on increasing our profits through manufacturing efficiencies and cost reductions and converting significant opportunities for sales of our market leading range of respiratory protection products around the world. 


The first half year has seen an improved performance from our already successful Dairy business and we expect this to be maintained. We further expect to secure long-term contracts for our Engineered Fabrications business which will provide benefits in 2009. 


The Board is confident that the foundations are in place for a period of sustainable and profitable growth. 

 

Statement of Directors' responsibilities

The Interim Report and Accounts is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Report and Accounts in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority. The Disclosure and Transparency Rules ('DTR') require that the accounting policies and presentation applied to the half-yearly figures must be consistent with those applied in the latest published annual accounts, except where the accounting policies and presentation are to be changed in the subsequent annual accounts, in which case the new accounting policies and presentation should be followed, and the changes and the reasons for the changes should be disclosed in the Interim Report and Accounts, unless the United Kingdom Financial Services Authority agrees otherwise. 


The Directors confirm that this condensed set of financial statements has been prepared in accordance with the International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR4.2.7 and DTR 4.2.8. 




Miles Ingrey-Counter

Company Secretary

  Independent review report to Avon Rubber p.l.c.

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2008, which comprises the consolidated income statement, consolidated balance sheet, consolidated statement of recognised income and expense, consolidated cash flow statement and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2008 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP
Chartered Accountants

Bristol   28 May 2008

  

Consolidated Income Statement




Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07



Note

(unaudited)


£'000

(unaudited

and restated)

£'000

(unaudited and restated)

£'000

Continuing operations





Revenue

3

23,385

31,191

60,287

Cost of sales


(19,808)

(24,652)

(46,994)

Gross profit


3,577

6,539

13,293

Operating expenses


(5,526)

(6,081)

(11,457)

Operating (loss)/profit from continuing operations

3,4

(1,949)

458

1,836

Finance income

5

3

-

114

Finance costs

5

(451)

(417)

(915)

Other finance income

5

566

1,251

2,489

(Loss)/profit before tax


(1,831)

1,292

3,524

Taxation

6

109

17

(717)

(Loss)/profit for the period from continuing operations


(1,722)

1,309

2,807

Discontinued operations





Loss for the period from discontinued operations

7

(4,166)

(1,171)

(1,712)

(Loss)/profit for the period


(5,888)

138

1,095

Profit attributable to minority interest


5

273

1

(Loss)/profit attributable to equity shareholders


(5,893)

(135)

1,094



(5,888)

138

1,095

(Loss)/earnings per share expressed in pence per share

9




Basic 


(20.7)

(0.5)

3.9

Diluted


(20.7)

(0.5)

3.8

(Loss)/earnings per share from continuing operations





Basic


(6.1)

3.6

10.1

Diluted


(6.1)

3.5

9.8


 

 

Consolidated Statement of Recognised Income and Expense



Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07


(unaudited)

£'000

(unaudited)

£'000

(unaudited)

£'000

(Loss)/profit for the financial period

(5,888)

138

1,095

Actuarial gain recognised in retirement benefit schemes

9,323

5,527

26,187

Movement on deferred tax relating to retirement benefit schemes

(2,611)

-

(4,606)

Net exchange differences offset in reserves

583

(1,610)

(2,441)

Net gains not recognised in income statement

7,295

3,917

19,140

Total recognised income for the period

1,407

4,055

20,235

Attributable to:




Equity shareholders

1,402

3,782

20,234

Minority interest

5

273

1

Total recognised income for the period

1,407

4,055

20,235


  Consolidated Balance Sheet



Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07



Note

(unaudited)

£'000

(unaudited)

£'000

(unaudited)

£'000

Assets





Non-current assets





Goodwill


5,705

5,294

5,511

Intangible assets


11,317

12,086

11,794

Property, plant and equipment


18,700

21,247

20,041

Deferred tax assets


334

1,053

334

Retirement benefit assets


26,300

-

16,380



62,356

39,680

54,060

Current assets





Inventories


14,346

12,929

11,526

Trade and other receivables


10,518

16,889

12,773

Cash and cash equivalents


710

1,876

957



25,574

31,694

25,256

Assets classified as held for sale


-

-

2,173



25,574

31,694

27,429

Liabilities





Current liabilities





Financial liabilities





- Borrowings


14,245

11,906

11,393

- Derivative financial instruments


-

15

-

Trade and other payables


15,364

19,011

13,906

Deferred tax liabilities


265

-

265

Current tax liabilities


350

621

744



30,224

31,553

26,308

Liabilities directly associated with assets classified as held for sale



-


-


1,707



30,224

31,553

28,015

Net current (liabilities)/assets


(4,650)

141

(586)

Non-current liabilities





Deferred tax liabilities


8,862

2,260

6,251

Retirement benefit obligations


656

7,712

1,730

Provision for liabilities and charges

10

4,600

2,880

2,037



14,118

12,852

10,018

Net assets


43,588

26,969

43,456

Shareholders' equity





Ordinary shares

11

29,141

28,340

29,125

Share premium


34,708

34,212

34,707

Capital redemption reserve


500

500

500

Translation reserve


(2,061)

(1,814)

(2,644)

Profit and loss account


(19,262)

(35,059)

(18,789)

Equity shareholders' funds

12

43,026

26,179

42,899

Minority interests (equity interests)


562

790

557

Total equity


43,588

26,969

43,456




Consolidated Cash Flow Statement



Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07



Note

(unaudited)

£'000

(unaudited)

£'000

(unaudited)

£'000

Cash flows from operating activities





Cash used in operations

13

(1,735)

(3,762)

(1,894)

Finance income received


3

-

114

Finance costs paid


(483)

(258)

(896)

Tax paid


(93)

(178)

(438)

Net cash used in operating activities


(2,308)

(4,198)

(3,114)

Cash flows from investing activities





Proceeds from sale of operations

7

1,571

-

-

Proceeds from sale of property, plant and equipment


413

3

14

Purchase of property, plant and equipment


(908)

(2,032)

(2,874)

Purchase of intangible assets


(367)

(1,408)

(2,445)

Net cash generated from/(used in) investing activities


709

(3,437)

(5,305)

Cash flows from financing activities





Net proceeds from issue of ordinary share capital


17

86

1,441

Net movements in loans


5,037

3,921

(2,488)

Dividends paid to shareholders


(1,367)

(1,326)

(2,353)

Net cash generated from/(used in) financing activities 


3,687

2,681

(3,400)

Net increase/(decrease) in cash and cash equivalents


2,088

(4,954)

(11,819)

Cash and cash equivalents at beginning of the period


(5,037)

6,893

6,893

Effects of exchange rate changes


(20)

(63)

(111)

Cash and cash equivalents at end of the period

14

(2,969)

1,876

(5,037)



  

Notes to the Interim Financial Statements


1.    Basis of preparation

This condensed consolidated half-yearly financial information for the half-year ended 31 March 2008 has been prepared in accordance with the Disclosures and Transparency rules of the Financial Services Authority and with IAS 34, 'Interim financial reporting' as adopted by the European Union. The half-yearly condensed consolidated financial report should be read in conjunction with the annual financial statements for the year ended 30 September 2008, which have been prepared in accordance with IFRS as adopted by the European Union.

These financial statements were approved by the Board of Directors on 27 May 2008.


2.    Accounting policies

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 September 2007, as described in those financial statements.

Recent accounting developments

The following standards, amendments and interpretations have been issued by the International Accounting Standards Board or by the IFRIC but have not yet been adopted. Subject to endorsement by the European Union, these will be adopted in future periods. IFRS 8 has been endorsed, and the other standards, amendments and interpretations are being considered for endorsement.

  • IFRS 8 'Operating segments'

  • IAS 23 'Borrowing costs' (revised)

  • IFRIC 12 'Service concession arrangements'

  • IFRIC 13 'Customer loyalty programmes'

  • IAS 27 'Consolidated and separate financial statements' (revised)

  • IFRS 3 'Business combinations' (revised)

     

   3.    Segmental analysis

Due to the differing natures of the products and their markets, Avon Rubber p.l.c.'s primary reporting segment is by business sector. The secondary reporting format comprises the geographical segments by origin.



Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07


(unaudited)


£'000

(unaudited and restated)

£'000

(unaudited and restated)

£'000

Revenue by business sector




Protection and Defence

12,243

19,327

37,838

Dairy

10,842

9,670

19,071

Other Engineered Products

300

2,194

3,378


23,385

31,191

60,287

Operating profit by business sector




Protection and Defence

(3,406)

(794)

(1,037)

Dairy

1,799

1,281

2,975

Other Engineered Products

(342)

(29)

(102)


(1,949)

458

1,836

Revenue by origin




Europe

5,890

8,659

16,923

North America

17,495

22,532

43,364


23,385

31,191

60,287



4.    Operating profit

 

The following items of unusual nature have been credited to operating profit.


Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07


(Unaudited)

£'000

(Unaudited)

£'000

(Unaudited)

£'000

Settlement of legal claims

376

-

-

Cancellation of USA post retirement medical scheme

505

-

-



A scheme which provided post retirement medical benefits to certain former employees of previously disposed businesses has now been terminated.  

5.    Interest and similar charges


Half year to

31 Mar 08

Half Year to

31 Mar 07

Year to

30 Sep 07


(Unaudited)

£'000

(Unaudited)

£'000

(Unaudited)

£'000

Bank loans and overdrafts

(451)

(416)

(914)

Other interest charges

-

(1)

(1)

Total interest payable

(451)

(417)

(915)

Interest receivable

3

-

114


(448)

(417)

(801)



Other finance income represents the excess of the expected return on pension plan assets over the interest cost relating to retirement benefit obligations.


Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07


(Unaudited)

£'000

(Unaudited)

£'000

(Unaudited)

£'000

Interest cost: UK Scheme

(6,799)

(6,432)

(12,863)

Expected return on plan assets: UK Scheme

7,446

7,752

15,479

Other finance cost: USA Scheme

(81)

(69)

(127)


566

1,251

2,489



6.    Taxation

The split of the tax (credit)/charge between UK and overseas is as follows:



Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07


(Unaudited)

£'000

(Unaudited)

£'000

(Unaudited)

£'000

United Kingdom

167

-

88

Overseas

(276)

(17)

629


(109)

(17)

717


 

7.    Results from discontinued operations


Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07


(Unaudited)


£'000

(Unaudited and restated)

£'000

(Unaudited and restated)

£'000

Revenue

5,754

6,558

13,434

Operating loss from discontinued operations

(3,612)

(1,171)

(1,712)

Operating loss is analysed as:




Before exceptional items

(1,021)

(1,171)

(1,712)

Exceptional operating items

(2,591)

-

-

Loss on disposal

(554)

-

-

Loss for the period from discontinued operations

(4,166)

(1,171)

(1,712)



Discontinued operations consist of the UK mixing operation, which the company has announced is being closed during the financial year and the UK aerosol gasket operation which was sold on 4 March 2008 to Crosslinks Limited.


2007 numbers have been restated to include the revenues and losses of these businesses.


Assets and liabilities directly attributable to the UK mixing operation, shown on the September 2007 balance sheet as held for sale have now been reclassified as the operation will now be closed.


The loss on disposal resulting from the sale of the aerosol gasket operation has been calculated as follows:



£'000

£'000

Proceeds from sale


2,091

Costs associated with sale


(179)



1,912

Assets and liabilities disposed of:



Property, plant and equipment

(1,074)


Intangible assets

(251)


Inventory

(476)


Trade and other receivables

(1,027)


Trade and other payables

362




(2,466)

Loss on disposal


(554)




£1,750,000 was received on completion of the sale on 4 March 2008, £341,000 deferred consideration is included in trade and other receivables in the interim balance sheet.



8.    Dividends


The Directors are proposing that no interim dividend will be paid in respect of the half year ending 31 March 2008.


  

9.    Loss per share


Basic loss per share is based on a loss attributable to ordinary shareholders of £5,893,000 (2007: £135,000) and 28,472,000 (2007: 27,637,000) ordinary shares being the weighted average of the shares in issue during the period on which dividends are paid.


Loss per share from continuing operations is based on a loss attributable to ordinary shareholders of £1,727,000 (2007: 1,036,000 profit).


Loss per share from discontinued operations amounts to 14.6p (2007: 4.1p) and is based on a loss of £4,166,000 (2007: £1,171,000).


The company has dilutive potential ordinary shares in respect of the Sharesave Option Scheme and the Performance Share Plan. The diluted loss per share is not materially different to the basic loss per share.



10.    Provisions for liabilities and charges




Reorganisation provision

 £'000

Automotive disposal £'000

Total

£'000

 

Opening balance 1 October 2006

1,526

1,900

3,426

Payments in the period

(546)

-

(546)

At 31 March 2007

980

1,900

2,880

Opening balance 1 October 2007

737

1,300

2,037

Charged to income statement

2,591

-

2,591

(Payments)/receipts in the period

(480)

452

(28)

At 31 March 2008

2,848

1,752

4,600




11.    Share capital



Number of shares (thousands)

Ordinary shares

£'000

Share premium £'000


Total

£'000

Opening balance 1 October 2006

28,275

28,275

34,191

62,466

Proceeds from shares issued pursuant to option schemes

64

64

21

85

At 31 March 2007

28,339

28,339

34,212

62,551

Opening balance 1 October 2007

29,125

29,125

34,707

63,832

Proceeds from shares issued pursuant to option schemes

16

16

1

17

At 31 March 2008

29,141

29,141

34,708

63,849


 

12.    Changes in equity



Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07


(Unaudited)

£'000

(Unaudited)

£'000

(Unaudited)

£'000

At the beginning of the period

42,899

23,514

23,514

Loss for the period attributable to equity shareholders

(5,893)

(135)

1,094

Dividends paid

(1,367)

(1,326)

(2,353)

Actuarial gain recognised in retirement benefit schemes

9,323

5,527

26,187

Movement on deferred tax relating to retirement benefit liabilities

(2,611)

-

(4,606)

Net exchange differences offset in reserves

583

(1,610)

(2,441)

New share capital subscribed

17

85

1,366

Movement in respect of employee share schemes

75

124

138

At the end of the period

43,026

26,179

42,899



13.    Cash generated from operations 



Half year to

31 Mar 08

Half year to

31 Mar 07

Year to

30 Sep 07


(Unaudited)


£'000

(Unaudited and restated)

£'000

(Unaudited and restated)

£'000

Continuing operations




(Loss)/profit for the financial period

(1,722)

1,309

2,807

Adjustments for:




Tax

(109)

(17)

717

Depreciation

1,077

1,018

1,994

Impairment of fixed assets

-

-

250

Amortisation and impairment of intangibles

829

444

1,054

Net interest expense

448

417

801

Other finance income

(566)

(1,251)

(2,489)

Loss on disposal of property, plant and equipment

31

4

-

Movements in working capital and provisions

(918)

(3,808)

(5,663)

Other movements

(1,030)

16

(245)

Cash used in continuing operations

(1,960)

(1,868)

(774)

Discontinued operations




Loss for the financial period

(4,166)

(1,171)

(1,712)

Adjustments for:




Depreciation

169

91

189

Loss on sale of discontinued operations

554

-

-

Movements in working capital provisions

3,668

(814)

403

Cash generated from/(used in) discontinued operations

225

(1,894)

(1,120)

Cash used in operations

(1,735)

(3,762)

(1,894)



 

14.    Analysis of net debt



As at 

30 Sep 07 £'000


Cash flow £'000

Exchange movements £'000

As at

 31 Mar 08 £'000

Cash at bank and in hand

791

(91)

10

710

Overdrafts

(5,994)

2,347

(32)

(3,679)

Current asset investments classified as cash equivalents

166

(168)

2

-

Cash and cash equivalents

(5,037)

2,088

(20)

(2,969)

Debt due within 1 year

(5,399)

(5,037)

(130)

(10,566)


(10,436)

(2,949)

(150)

(13,535)



Borrowing facilities



Total

facility


Utilised


Undrawn


£'000

£'000

£'000

United Kingdom

16,450

14,177

2,273

North America

2,138

68

2,070

Utilised in respect of guarantees

377

377

-


18,965

14,622

4,343




All of the above facilities are subject to annual review, periodic covenant testing and have commitment periods which end within the next twelve months. Since the period end the level of the bank facility in the United Kingdom has been increased to £17,500,000.


15.    Seasonality


Seasonal fluctuations have no material impact on the company's revenues.


16.     Copies of this announcement are available for download at www.avon-rubber.comFurther enquiries should be directed to the company's registered office at Hampton Park West, Semington Road, Melksham, WiltshireSN12 6NBEngland. Email: enquiries@avon-rubber.com.




This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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