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Last checked at 
25 Jan 2011 07:00
Strictly embargoed until 07:00 Tuesday 25 January 2011
AVON RUBBER p.l.c.
("Avon", the "Group" or the "Company")
INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 OCTOBER 2010 to 24 JANUARY 2011
The Group has maintained the progress reported in the 2010 year-end announcement in the first quarter of our 2011 financial year, showing an improved financial performance over the comparative period last year.
Protection & Defence
We have continued to deliver mask systems and spare filters on schedule to the US DoD. In the period we also delivered masks with a sales value of $3.1m under our first Foreign Military Sales ('FMS') order and received a further significant order from Saudi Arabia for delivery later in the financial year. All of our US government related businesses have experienced some delays in the release of funds ahead of the approval of the 2010/2011 budget, but we expect to see this resolved during the second quarter of our financial year. Despite this we have seen an improved level of activity in the US homeland security market and our fire protection business ISI performed ahead of the corresponding period last year.
AEF continues to be profitable.
The UK MoD has exercised the third and final option of its three year contract for the supply of S10 masks as expected. This has a sales value of £1.55m and these masks are for delivery in our 2011 financial year.
Dairy
The market for our Dairy products has remained robust during the period under review. Our revenues are significantly up on the same period last year and despite higher input costs, an improved operational cost base and efficiencies have allowed us to continue to enhance our operating margins.
Net debt and interest payable
Net debt was £12.9m at 31 December 2010 (30 September 2010: £12.6m). The Group's new banking facilities which came into effect on 1 October 2010 have led to a reduction in the interest cost against the same period last year.
Outlook
We remain on track to deliver growth and improved results for the 2011 financial year, although the timing of the release of US Government funding may shift certain deliveries from the Protection & Defence business into the second half of the year.
In our Dairy business we expect the positive performance achieved so far to be continued.
For further enquiries, please contact:
Avon Rubber p.l.c. | |
Peter Slabbert, Chief Executive | 01225 896831 |
Andrew Lewis, Group Finance Director | 01225 896830 |
Hayley Baddon, Corporate Communications | 01225 896363 |
Weber Shandwick Financial | |
Nick Oborne | 020 7067 0700 |
Clare Thomas | 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
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