Last checked at 17 Aug 2010 07:00
Strictly embargoed until 07:00 Tuesday 17 August 2010
AVON RUBBER p.l.c.
("Avon", the "Group" or the "Company")
INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 APRIL 2010 to 17 AUGUST 2010
The Group has maintained the good progress reported in the half year announcement with the third quarter of our financial year showing an improved trading performance over the comparative period last year in line with management expectations.
Protection & Defence
Year to date revenue to the end of the third quarter compared to last year was up 20%. We continue to deliver mask systems on schedule to the US DoD and UK MoD. We are seeing an improved level of activity in the US homeland security markets and have experienced a significant increase in orders from US fire departments since the release of federal grant funding in March leading to a return to profitability for ISI in the third quarter.
AEF is performing well and has received a further $5m of orders for military fuel tanks under its long term sole source supply contract.
Dairy
The market for our product has remained robust during the period under review. Year to date revenue to the end of the third quarter compared to last year was up 11% and the full benefits of the European outsourcing are now being realised.
Investment
The new filter line which doubles the manufacturing capacity at our Cadillac facility is in the final stage of commissioning and is expected to be fully operational before the financial year-end.
Balance Sheet
Strong operating cash generation, seasonal fluctuations in working capital, the investment in additional filter capacity and the US$ exchange rate have combined to result in a decrease in net debt to £13.5m at 30 June 2010 (31 March 2010: £14.4m). This gives headroom of £9.9m against facilities of £23.4m.
Outlook
We remain on track to deliver growth and improved results for the 2010 financial year.
In Protection & Defence we have made considerable progress towards establishing a global leading market position in respiratory protection for military and homeland security users and remain confident that this progress will be sustained.
In Dairy we are well positioned for future growth from new products and markets.
For further enquiries, please contact:
| Avon Rubber p.l.c. |
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| Peter Slabbert, Chief Executive | 01225 896800 |
| Andrew Lewis, Group Finance Director | 01225 896800 |
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| Fiona Stewart, Corporate Communications Executive | 01225 896871 |
| Weber Shandwick Financial |
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| Nick Oborne | 020 7067 0700 |
| Clare Thomas | 020 7067 0700 |
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