Last checked at 1 Feb 2018 07:00
1 February 2018
AVON RUBBER p.l.c.
Annual General Meeting - Trading Update
In advance of its Annual General Meeting being held at 10.30am today, Avon Rubber p.l.c. provides the following trading update.
The Board is pleased to report that the Group has had a positive start to its financial year with trading in the four months to 31 January 2018 continuing in line with the Board's expectations.
Avon Protection
Order intake across Avon Protection has remained strong.
Our Military business enjoyed a positive start to the year and continues to build momentum for 2018 and beyond. Orders have been received from the US Department of Defense which secure anticipated sales of M50 mask systems for the current year and contributes towards building the order book for our 2019 financial year. Our Rest of the World Military business has received the first commercial orders for our MCM100 underwater rebreather and is seeing increasing interest and orders for our recently launched Powered Air products.
Law Enforcement delivered a strong start to the year with significant growth in order intake across the portfolio and growing sales of Powered Air products in Europe and Rest of World. We anticipate receiving US NIOSH safety standards approval for our Powered Air range in the second quarter enabling the launch of these products in the US later in the year.
Our Fire business has delivered in line with expectations.
milkrite | InterPuls
Dairy market conditions have remained positive in the year to date, with milk price softness being offset by lower feed prices. The business has continued to perform well with revenue growth within Precision Control & Intelligence and Farm Services particularly strong.
Foreign Exchange
The continued strengthening of sterling against the dollar will impact our results for the current financial year as reported in sterling. If exchange rates remained unchanged for the balance of the year, the adverse translational currency impact would be expected to be 8% on revenue and adjusted operating profit, compared to our previous guidance of 3%.
Taxation
The net impact of the recently enacted US tax reform will be positive for Avon.
For the current financial year, the adjusted effective tax rate is anticipated to be around 14%, which includes a one off favourable revaluation of the US net deferred tax liability and the release of provisions following the positive outcome of certain tax enquiries. For future financial years, the adjusted effective rate of tax is estimated to be around 19%.
Outlook
With a positive start to the financial year and the continued strong order intake, the Board is confident of achieving its current year expectations.
Interim results for the six months ending 31 March 2018 will be announced on 2 May 2018.
For further enquiries, please contact:
Avon Rubber p.l.c. |
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Paul McDonald, Chief Executive Officer | 01225 896 300 |
Nick Keveth, Chief Financial Officer |
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Weber Shandwick Financial |
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Nick Oborne Tom Jenkins | 020 7067 0700 |
Legal Entity Identifier: 213800JM1AN62REBWA71
Classification: Inside information under article 17 of the Market Abuse Regulation.
Note to editors:
Avon Rubber p.l.c. is an innovative technology group specialising in respiratory protection systems and milking point solutions through its two businesses, Avon Protection and milkrite | InterPuls. We design, test and manufacture specialist products and services to maximise the performance and capabilities of our customers.
Avon Protection is the recognised global leader in advanced Chemical, Biological, Radiological and Nuclear (CBRN) respiratory protection systems for the world's Military, Law Enforcement and Fire markets.
milkrite | InterPuls is a global leader providing complete milking point solutions to customers across the world with the aim of improving every farm it touches.
For further information, please visit our website: www.avon-rubber.com