LONDON (Alliance News) - Rubber-based products manufacturer Avon Rubber PLC said its first-half profit rose by GBP500,000, amid strong sales to in the law enforcement sector, leaving Avon confident in its full-year expectations.
Avon Rubber posted pretax profit of GBP9.4 million for the six months ended March 31, up from GBP8.9 million for the same period the previous year.
Revenue fell 1.5% to GBP77.7 million from GBP78.9 million the year before. But this was a 5.9% increase at constant currency. Avon Rubber's orders received were down 2.7% to GBP88.3 million from GBP90.8 million; however, at constant currency rates this was a 5% increase.
Avon Rubber's best performer was in the law enforcement area of its Avon Protection business. There, revenue increased 42% on a constant currency basis to GBP18.6 million from GBP12.5 million the previous year.
The rubber manufacturer posted "strong" earnings before income, taxation, depreciation and amortisation margins, up 20% to GBP15.3 million.
The company also increased its interim dividend by 30% to 5.34 pence. Avon Rubber's net cash as at March 31 was up by GBP14.4 million to GBP39.1 million.
Looking forward, Avon Rubber said it remains "confident" on delivery of its current financial year expectations and is "excited" by the medium-term prospects of the company. It believes it has delivered "strong" financial results with its underlying performance "more than" offsetting currency headwinds.
Chief Executive Paul McDonald said: "We have delivered strong financial results, with underlying performance more than offsetting currency headwinds, whilst continuing to build the order book. We have also made further progress on the longer-term growth opportunities for our expanding product portfolio.
"The performance reflects the benefits of the strategic actions being implemented to enable the group to continue to grow sustainably in our core markets. Building on this platform, and with the momentum from our expanding product portfolio, the board remains confident on delivery of its current year expectations and is excited by the medium-term prospects for the group."
Shares in Avon Rubber were down 1.1% Wednesday to 1,345.00 pence each.
Avon Protection (AVON)