Last checked at 18 Aug 2011 07:00
Strictly embargoed until 07:00 Thursday 18 August 2011
AVON RUBBER p.l.c. ("Avon", the "Group" or the "Company")
INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 APRIL 2011 TO 17 AUGUST 2011
The Group has maintained the progress reported in the 2011 half year announcement in the third quarter of our 2011 financial year, showing an improved financial performance over the comparative period last year, in line with the Board's expectations.
Protection & Defence
Following completion of deliveries under the existing filter spares contract, a further three year Indefinite Delivery Indefinite Quantity ("IDIQ") filter spares contract has been agreed with the US Department of Defence ("DoD"). This has a total potential value of $38m and we have received an initial order valued at $11m which we expect to fulfill in this financial year.
We have continued to deliver mask systems on schedule to the DoD and the UK MoD and we remain on track to achieve year on year growth in orders from higher margin military and homeland security markets.
ISI has experienced better demand for our unique combination SCBA/respirator, the ST53, but its core US domestic fire market remains weak due to reductions and delays in Federal funding for fire departments. At AEF order intake continues to be negatively affected by delays in DoD order releases.
Dairy
The market for our dairy products has been robust during the period under review and while input costs have remained volatile, we have been able to pass these through to customers. Our margin enhancing IPMV vented liner continues to gain an impressive market share in the US.
Net debt
Net debt was £14.4m at 30 June 2011 (31 March 2011: £13.9m). The working capital required to fulfill the filter order referred to above was invested in anticipation of the order.
Outlook
Our Protection & Defence business remains on track to deliver improved results for the 2011 financial year. We have successfully met the challenges of a continuing period of instability in the global defence market, benefiting from our long term sole source contract with the DoD and the growing demand for consumable filters, together with our expanding range of products, which are becoming the respiratory protection equipment of choice. Reduced volumes in certain markets have been more than offset by a better sales mix and improved efficiencies.
In our Dairy business, we expect the positive performance achieved so far to continue.
For further enquiries, please contact:
Avon Rubber p.l.c. | |
Peter Slabbert, Chief Executive | 01225 896831 |
Andrew Lewis, Group Finance Director | 01225 896830 |
Fiona Stewart, Corporate Communications | 01225 896871 |
Weber Shandwick Financial | |
Nick Oborne | 020 7067 0700 |
Stephanie Badjonat | 020 7067 0700 |
NOTES TO EDITORS: Avon Rubber p.l.c. is a world leader in the design, test and manufacture of advanced Chemical, Biological,Radiological and Nuclear (CBRN) respiratory protection solutions to the worlds military, law enforcement, first responder,
emergency services, fire and industrial markets. Avon has a unique capability in CBRN protection based on a range of advanced
CBRN technologies in respirator design, filtration and compressed air breathing apparatus. This enables Avon to develop specialised
solutions that take full account of user requirements. Avon also owns a world leading dairy business manufacturing liners and
tubing for the automated milking process. For further information please visit the Group's website www.avon‐rubber.com