(Alliance News) - Respiratory and milking equipment firm Avon Rubber PLC on Wednesday said results in a "transformational" year beat expectations.
Revenue in the financial year to September was GBP179.3 million, 8.3% higher than the year before, 4.2% higher excluding currency movements.
Orders received climbed 5.0%, and 1.4% at constant currency, to GBP173.3 million. The closing order book was GBP40.4 million, up 6.9% year-on-year but down 0.7% at constant currency.
Avon Rubber's pretax profit fell 37% to GBP13.7 million, but the adjusted figure was up 15% to GBP31.4 million. Profit was hurt by a rise in costs as well as impairments.
Avon Rubber, which is based in Melksham, Wiltshire, is paying a final dividend of 13.89 pence per share, taking the year's total to 20.83p, 30% higher than the year before.
"These results reflect the success of our strategic focus on growing our presence in our core markets and investing further in our product portfolio to meet more of the requirements of our expanding customer base," said Chief Executive Paul McDonald.
"In the last two years, we have built visibility and breadth within our contract portfolio, enabling us to deliver another record performance, and we enter the new year from a position of strength."
Going into its new financial year Avon Rubber has a "strong" order book, and it expects a full year of revenue, as well as further orders, for its new M53A1 and M69 mask contracts with the US Department of Defense.
During the year to September Avon Rubber bought 3M Co's ballistic protection business for USD91 million, and it expects this to complete in the first half of 2020.
"The acquisition of 3M's ballistic protection business will significantly bolster our personal protection offering and accelerate our long-term growth prospects. The transformation during the year leaves us well positioned to deliver further success in 2020 and beyond," continued McDonald.
Shares were 0.6% higher on Wednesday morning in London at a price of 1,901.52p each.
By George Collard; georgecollard@alliancenews.com
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Avon Protection (AVON)