Avon Protection Regulatory News (AVON)

Strictly embargoed until 07:00 Thursday 6 February 2014

AVON RUBBER p.l.c. ("Avon", the "Group" or the "Company")

INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 OCTOBER 2013 TO 5 FEBRUARY 2014

Introduction

The financial year has started positively with the momentum of 2013 carrying into 2014, leaving us well positioned to deliver further growth this year.

Protection & Defence

In Protection & Defence an improved order book was carried forward into this financial year and this has resulted in a substantially stronger first quarter performance compared to last year.

Deliveries of mask systems and filters to the US Department of Defense (DoD) remain on schedule and we expect to deliver at normal levels through to our half year. Our expectation is that our order intake on this program for the full year will meet or exceed that of 2013.

Non-DoD order intake has improved steadily and shows year on year progression, with the order intake from South America growing particularly strongly.

AEF has seen a continuation of the high level of order receipts experienced in 2013 and is expecting to deliver a similar first half result to 2013. At this stage order visibility is limited for the second half of the financial year.

Our new Fire service SCBA product, the Deltair, was due to be launched during the period. However, the US Fire market as a whole has experienced delays in the approval of new products under the 2013 standard caused by issues at the government testing house. Therefore, in common with other Fire equipment manufacturers, we have not been able to supply our new product yet, although orders for it are in hand. We do not expect resolution of this industry wide issue until the second half of our financial year.

Dairy

Dairy markets have started to return to more normal buying patterns for our products as animal feed prices have reduced. The cluster exchange service, which we launched at the end of 2013, has been well received by the US market and we should see the financial benefit progressively throughout our financial year. The Milkrite ImpulseAir mouthpiece vented liner continues to sell well in North America and is now making progress in Europe.

Net debt

The Group's balance sheet remains robust and the timing of working capital movements has driven net debt at 31 December 2013 to a significantly lower level at £4.8m (30 September 2013: £10.9m). 

Outlook

Having achieved a positive start to the year, the Board is confident that the Group will meet full year market expectations, although we expect a more even half year split than in previous years.

Half Year announcement

The Group will announce its results for the half year to 31 March 2014 on Wednesday 30th April 2014.

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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