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23 Oct 2008 07:00
23 October 2008
AVON RUBBER p.l.c.
("Avon", the "Group" or the "Company")
PERIOD END UPDATE
The Board is issuing this update following the Company's 30 September 2008 financial year-end.
Avon is pleased to report that its Cadillac Michigan facility, which produces the M50 respirator single source for the US Department of Defense, has generated a satisfactory profit in the final quarter following the substantial resolution of production issues and cost overruns. With orders of £25 million on hand for delivery and with further US Government funding of $42.6 million approved in 2009 for this 10 year programme, we expect this improved performance to continue.
Our Dairy business has continued to grow in both our traditional US and European markets as well as into newer markets such as China.
Avon-ISI which sells primarily to fire services in the US has, however, not met expectations in difficult market conditions. This will require us to consider the carrying value of goodwill and intangible assets associated with this business. We also expect to require an increase in the provisions associated with discontinued operations.
Net debt reduced to £15.1 million at the year-end from £18.3 million at 30 June 2008 with an improvement in working capital, despite the negative impact on borrowings of a stronger US dollar.
Peter Slabbert, Chief Executive, commented:
"The significant turnaround in the performance of our Cadillac operation has enabled the Group to start the 2009 financial year with confidence of a return to profitability after what has been a difficult 2008."
END >
For further enquiries please contact:
Avon Rubber p.l.c:
Peter Slabbert 01225 896870
Fiona Stewart 01225 896871
Weber Shandwick Financial:
Nick Oborne
Rachel Martin 020 7067 0700
Clare Perks
NOTES TO EDITORS:
Avon Rubber p.l.c. is an international polymer engineering group adding value through material, manufacturing and industry sector expertise. For further information please visit the Group's website www.avon-rubber.com
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