Pre close trading update

RNS Number : 3914D

Avon Rubber PLC

28 March 2014

 

Strictly embargoed until 07:00 Friday 28 March 2014

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

2014 Half Year - Pre close trading update

Introduction

As a result of strong trading we expect the half year result to be substantially better than in 2013 and believe that the Group's full year adjusted operating profit (*) will be towards the upper end of current market expectations.

Protection & Defence

Strong first half trading in the Protection &Defence business reflected our strategy of increasing levels of higher margin non-DoD sales. The mix of sales in the second half of the financial year is likely to be more in favour of lower margin DoD sales as we fulfill the 85,000 mask systems order received in the second quarter and further US government budgets are released. We therefore expect some first half bias to the results of this business for the year as a whole.

We have completed shipment of export orders brought forward into this financial year and trading in the second half of the year will benefit from delivery against our largest ever individual US Homeland Security order (£4m) which was received in the second quarter, the positive order intake from the South American market and sales of our new Deltair fire SCBA, which has now passed all the tests required for regulatory approval.

Dairy

Markets have returned to historical buying patterns for our consumable products because animal feed prices have returned to more normal levels. The cluster exchange service, which was launched at the end of 2013, has been well received by the US market and this should provide further growth opportunities through the remainder of our financial year. The Milkrite ImpulseAir mouthpiece vented liner continued to sell well in North America and made progress in Europe. As a result we expect the business to report modest progress over the first half of the financial year (against what was a relatively strong comparable first quarter in this market) and be well positioned for further growth in the second half.

Net debt

The Group has seen strong conversion of profits into cash and we expect half year net debt to be significantly lower than the £10.9m reported at the previous year end.

Half Year announcement

Half year results will be announced on Wednesday 30^th April 2014.

(*) = Note - adjusted operating profit excludes the amortisation of acquired intangibles, IAS19(R) pension charges and exceptional items.

Peter Slabbert, Chief Executive, commented:

"The first half of 2014 has been another period of excellent progress for Avon. Both divisions have performed well, leaving the Group well positioned to deliver for the remainder of 2014 and beyond."

For further enquiries, please contact:

Avon Rubber p.l.c.
Peter Slabbert, Chief Executive	01225 896831
Andrew Lewis, Group Finance Director	01225 896830
Sarah Matthews-DeMers, Group Financial Controller	01225 896835
Sophie Williams, Group Public Relations Manager	01225 896563
Weber Shandwick Financial
Nick Oborne	020 7067 0700

Note to editors: The Group has transformed itself over the past five years into 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 UK, serving markets around the world. We achieve this through nurturing the talent and aspirations of our employees to realise their highest potential.

Avon Protection is the recognised global market leader in advanced Chemical, Biological, Radiological and Nuclear (CBRN) respiratory protection systems technology for the world's military, homeland security, first responder, fire and industrial markets. With an unrivalled pedigree in mask design dating back to the 1920's, Avon Protection's advanced products are the first choice for Personal Protective Equipment (PPE) users worldwide and are placed at the heart of many international defence and tactical 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 to shield them from every possible threat.

Our world-leading Dairy business and its Milkrite brand have a global market presence. With a long history of manufacturing liners and tubing for the dairy industry, Milkrite has become the leading innovator and designer for products and services right at the heart of milking. Our goal is always to improve and maintain animal health. Working with the leading scientists and health specialists in the global dairy industry we continue to invest in technology to further improve the milking process and animal welfare. Our products provide exceptional results for both the animal and the milker, making the milk extraction process run smoothly. As our market share and milking experience continue to grow, so does our global presence.

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

 

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