LONDON (Alliance News) - Rubber-based products maker Avon Rubber PLC on Wednesday said its pretax profit and revenue grew in its financial year to the end of September, prompting a significant hike to its dividend.
Avon increased its final dividend by 30% to 6.32 pence per share from 4.86p a year before. Its total payout also rises 30% to 9.48p from 7.29.
Avon said it made a pretax profit of GBP21.6 million in the year to the end of September, up 9.1% from the GBP19.8 million it made a year prior. Revenue increased to GBP142.9 million from GBP134.3 million, driven by a strong performance in its Dairy business and solid trading in its Protection & Defence unit.
Revenue in Protection & Defence, which represents 71% of group revenue, rose 2.0% in the year, boosted by its long-term M50 mask contract with the US Department of Defense.
Dairy revenue rose 18% year-on-year, driven by the acquisition of milking components developer InterPuls in August 2015. The contribution from this offset softer market conditions in dairy markets caused by lower milk prices.
"Avon's strategy has delivered strong earnings growth and cash generation. Our business has proved to be resilient in difficult market conditions and we exit the year a more robust business with a range of good opportunities for growth," said Avon Chief Executive Rob Rennie.
Avon shares were up 4.0% to 1,042.85p on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Avon Protection (AVON)