LONDON (Alliance News) - Avon Rubber PLC on Tuesday said market conditions have continued to prove soft in the first quarter of its financial year, sending its shares lower in early trade.
Shares in Avon were down 17% to 832.45 pence early Tuesday, the worst performer in the FTSE All-Share.
The rubber products manufacturer said conditions in dairy markets have remained soft in the quarter to the end of December. It said it remained confident it would be able to deliver against its long-term targets, though also cautioned this would be dependent on the timing of orders for its Protection & Defence division.
The group said while trading has been solid in its Protection & Defence unit, but said while its sees a number of higher margin opportunities, the timing of orders remains unpredictable.
For the Dairy unit, general market conditions for dairy farmers in Europe have been weak due to low milk prices, which has cut demand for consumable products of the kind Avon makes.
The group will publish its interim results for the six months to the end of March on May 4.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Avon Protection (AVON)