Avon Rubber back on dividend list

Avon Rubber returned to the dividend payment list as profits bounced sharply last year.Revenues in the year to September rose 17% to £117.6m from £100.9m with an operating profit of £9.3m aginst £5.5m. Pre-tax profits jumped to £7.1m from £1.9m.Protection & Defence is winning new customers at an increasing rate, Avon said, with more money now going into sales and marketing activities and new product development programmes. Operating profit grew by 46% to £6.5m (2009: £4.5m).The dairy business postd operating profit (before exceptional items in 2009) of £4.6m (2009: £3.0m). It now has an appropriate cost base through the outsourcing of European production and is gaining market share as it expands into new territories, Avon added."As a result of the group's good progress, encouraging prospects and strong financial performance, the Board is recommending the resumption of the dividend," the statement said."We expect the progress made in 2010 to continue and for operating margins to improve further. Lower interest costs should also have a positive effect on earnings," it added.The dividend for the year is 1.5p. Avon Protection