Last checked at 31 Jan 2019 07:00
31 January 2019
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.
Avon Protection
Avon Protection has enjoyed a solid start to the year, with strong performance in its Military business underpinning expected revenue growth in the first half of the year. Following the award of the M69 Aircrew Mask contract from the U.S. Department of Defense ("DoD") the first order is expected imminently with deliveries commencing in the second half of the year. We are also continuing to make good progress on a number of other identified opportunities with Rest of World Military customers and the DoD, including the multi-year M53A1 mask and powered air system and the M50 sustainment contract.
We continue to see a strong pipeline of Law Enforcement and Fire opportunities. However, the recent partial U.S. Government shut down is impacting the timing of orders from U.S. Law Enforcement and Fire customers and our ability to obtain export licenses for U.S. manufactured products. As a result, we now expect our Law Enforcement and Fire revenues to be more heavily weighted to the second half of the financial year.
milkrite | InterPuls
Global dairy market conditions have softened in the first quarter, with falling milk prices impacting farmer confidence. This has impacted trading in all three business lines, and particularly Precision, Control & Intelligence given the longer replacement cycle for these products. We expect upward pressure on feed prices in the second quarter to have a further adverse impact on dairy market conditions and we now expect milkrite | InterPuls revenues for the full year will be flat on a constant currency basis versus the prior year, with a low single digit decline in the first half.
Outlook
The continued strong momentum in Avon Protection is expected to offset the anticipated tougher dairy market conditions. The Board therefore remains confident of achieving its current year expectations.
For further enquiries, please contact:
Avon Rubber p.l.c. | |
Paul McDonald, Chief Executive Officer | 01225 896 300 |
Nick Keveth, Chief Financial Officer |
Legal Entity Identifier: 213800JM1AN62REBWA71
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") EU no.596/2014. Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
Note to editors:
Avon Rubber is an innovative technology group which designs and produces specialist products and services to maximise the performance and capabilities of its customers. We specialise in Chemical, Biological, Radiological and Nuclear ("CBRN") and respiratory protection systems, as well as milking point solutions through our two businesses, Avon Protection and milkrite | InterPuls.
Avon Protection is the recognised global leader in advanced 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 dairy farmers across the world with the aim of improving every farm it touches.
For further information, please visit our website: www.avon-rubber.com.