Last checked at 26 Jan 2016 07:00
Strictly embargoed until 07:00 Tuesday 26th January 2016
AVON RUBBER p.l.c. ("Avon", the "Group" or the "Company")
Annual General Meeting - trading update for the quarter ended 31 December 2015
As indicated in our preliminary results statement, dairy market conditions have remained soft in the first quarter of the financial year. Notwithstanding this, and the timing of order receipts in Protection & Defence, the Board remains confident in the potential of the Group to generate and deliver against long-term growth opportunities on both sides of the business.
Protection & Defence
In Protection & Defence, mask systems production has, as planned, been focused on fulfilling deliveries to the DOD under our 10 year sole source contract for the JSGPM M50 mask. We continue to see a number of higher margin export opportunities although, as always, the timing of order receipt remains unpredictable. We are currently planning for one of these to be received and fulfilled in the first half of this financial year.
The integration of the Argus business acquired in October 2015 has progressed well, with the manufacturing operation moved from Chelmsford to our Melksham facility during the Christmas period.
Dairy
As previously highlighted, general market conditions for dairy farmers, particularly in Europe, have been weak as milk prices have been low. This typically cyclical market dynamic has, as expected, reduced demand for our consumable products as farmers extend the life through over using product. The capital nature of the InterPuls product makes the replacement cycle longer. The take up by farms of the innovative Cluster Exchange service remains at encouraging levels in both North America and Europe.
We are pleased with the integration of InterPuls, acquired in August 2015, into the wider Dairy business and expect to realise the long-term strategic benefits that have been identified in due course.
Balance sheet
The Group continues to be strongly cash generative. Net debt at 31 December 2015 was £10.0m (30 September 2015: £13.2m).
Commenting, Rob Rennie, Chief Executive Officer, said,
"I am delighted to have joined Avon at this exciting time in its development and see good opportunities for growth across both Protection & Defence and Dairy."
Interim results for the six months ended 31 March 2016 will be announced on 4 May 2016.
For further enquiries, please contact:
Avon Rubber p.l.c. | |
Rob Rennie, Chief Executive Officer | 01225 896870 |
Andrew Lewis, Group Finance Director | 01225 896830 |
Sarah Matthews-DeMers, Associate Group Finance Director | 01225 896835 |
Weber Shandwick Financial | |
Nick Oborne | 020 7067 0700 |
Note to editors: The Group has transformed itself over the past five years into an innovative design and engineering group specialising in two core markets, Protection & Defence and Dairy. With a strong emphasis on research and development we design, test and manufacture specialist products from a number of sites in the US and UK, serving markets around the world. We achieve this through nurturing the talent and aspirations of our employees to realise their highest potential.
Avon Protection is the recognised global market leader in advanced Chemical, Biological, Radiological and Nuclear (CBRN) respiratory protection systems technology for the world's military, homeland security, first responder, fire and industrial markets. With an unrivalled pedigree in mask design dating back to the 1920's, Avon Protection's advanced products are the first choice for Personal Protective Equipment (PPE) users worldwide and are placed at the heart of many international defence and tactical PPE deployment strategies. Our expanding global customer base now includes military forces, civil and first line defence troops, emergency service teams and industrial, marine, mineral and oil extraction site personnel. All put their trust in Avon's advanced respiratory solutions to shield them from every possible threat.
Our world-leading Dairy business and its Milkrite brand have a global market presence. With a long history of manufacturing liners and tubing for the dairy industry, Milkrite has become the leading innovator and designer for products and services right at the heart of milking. Our goal is always to improve and maintain animal health. Working with the leading scientists and health specialists in the global dairy industry we continue to invest in technology to further improve the milking process and animal welfare. Our products provide exceptional results for both the animal and the milker, making the milk extraction process run smoothly. As our market share and milking experience continue to grow, so does our global presence.
For further information please visit the Group's website www.avon-rubber.com