LONDON (Alliance News) - Rubber products manufacturer Avon Rubber PLC on Tuesday said its pretax profit surged in the year to the end of September as a fall in administrative expenses offset higher depreciation and amortisation costs.
Avon Rubber said its pretax profit for the year was GBP17.8 million, up from GBP13.9 million a year earlier. Administrative expenses for the group fell to GBP13.8 million from GBP15.7 million and this, plus a rise in revenue, helped to offset a slight uptick in depreciation and amortisation costs.
Avon said its revenue rose to GBP134.3 million, up from GBP124.8 million, with a strong performance across its protection and defence business, helped by robust US Department of Defense contracts, while Dairy revenue also performed well.
The company will pay a final dividend of 4.86 pence per share, up 30% year-on-year, leading to a total dividend of 7.29p, up from 5.61p.
"2015 has been an excellent year reflecting the strategic decisions made over the last three years to invest in innovative new products and technologies while expanding our international markets. Together with the integration of the technology, customers and people from our recent acquisitions, this provides us with the opportunity to continue to grow our business, this year and beyond," said Andrew Lewis, the company's interim chief executive.
Shares in Avon Rubber were up 1.2% to 1,130.00p on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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