Avon Rubber PLC
13 April 2005
13 April 2005
Avon Rubber p.l.c
STATEMENT RE MG ROVER
Following recent developments at MG Rover the Board of Avon Rubber p.l.c. has
issued the following statement.
Our business with and exposure to MG Rover reduced significantly as a result of
their decision to source vibration management products in China from October
2004.
In the event that production does not recommence, sales of hoses valued at £1.4
million to MG Rover from our continental European plants for the six months to
our financial year end on 30 September 2005, will be lost. This represents
around 1% of group sales and would have an impact of approximately £0.6 million
on gross profit.
Current receivables outstanding together with dedicated inventory and tooling
relating to MG Rover amount to £0.9 million. Depending on developments at MG
Rover, a provision for these items may be made as part of our first half year
results which will be announced on 19 May 2005.
Commenting on the statement, Steve Willcox, Chief Executive said:
'For the sake of all stakeholders in MG Rover, we hope that a positive way
forward can be achieved. Our European Automotive activities are currently
undergoing reorganisation in line with the details given at the Annual General
Meeting in January 2005 and we would not expect any further reorganisation to be
necessary as a consequence of the situtation facing MG Rover.'
< ends >
Contact Information:
Avon Rubber p.l.c
Steve Willcox, Chief Executive 01225 861100
Terry Stead, Finance Director
(Local/Trade Press) 01225 861100
Jayne Hunt
Weber Shandwick Square Mile
Richard Hews / Rachel Taylor / Stephanie Badjonat 020 7067 0700
This information is provided by RNS
The company news service from the London Stock Exchange
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