Last checked at 14 Sep 2018 07:00
14 September 2018
AVON RUBBER p.l.c.
Pre-close trading update
Avon Rubber p.l.c. ("Avon" or the "Group") today issues the following trading update ahead of its year end close on 30 September 2018.
The Board is pleased to report that trading in the second half has continued to be strong and it expects 2018 full year adjusted profit before tax to be in line with its expectations.
Avon Protection
Order intake momentum across Avon Protection has remained positive with full year constant currency revenue growth expected to be circa 7%.
In the second half, our Military business received orders from the US Department of Defense ("DoD") for 116,000 M50 mask systems, bringing total orders received during the year to 216,000 systems. We expect to deliver circa 182,000 M50 mask systems to the DoD during the current financial year, with a substantial carry-over of 83,000 systems into our 2019 financial year.
There remains an active pipeline of incremental contract opportunities across the Military business and we remain well placed to make further progress in capitalising on our leading military position and product range.
Law Enforcement has continued to deliver growth across the portfolio in all geographies following the launch of our powered air product range. Tougher market conditions have continued to impact Fire performance in the second half of the year.
milkrite | InterPuls
The global dairy market environment has remained positive and we have seen improved trading conditions in North America in the second half. As a result, full year constant currency revenue growth is expected to be circa 4%.
PCI and Farm Services have continued to perform well and in line with the trends in the first half. Interface performance has recovered in the second half given the improved market conditions in North America and the acquisition of the distribution rights to the Merrick's calf nurser product line in June for a total cost of $2.1m.
Cash conversion
Strong operational cash generation has been maintained with EBITDA cash conversion expected to be circa 100%. The year end cash position will reflect the costs relating to the acquisition of the Merrick's calf nurser product line.
Commenting, Paul McDonald, Chief Executive Officer, said:
"The Group's momentum has carried over into the second half of the year with Avon Protection continuing to benefit from opportunities across its product portfolio and customer base, and an improved overall performance from milkrite | InterPuls following the recovery in the North American market.
Our strong order book provides good visibility going into the new financial year and the business is well positioned to deliver further growth and take advantage of new product opportunities to build a stronger business for the future."
Full year results for the year ended 30 September 2018 will be announced on 14 November 2018.
For further enquiries, please contact:
Avon Rubber p.l.c. |
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Paul McDonald, Chief Executive Officer Nick Keveth, Chief Financial Officer | 01225 896 300 |
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Weber Shandwick Financial |
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Nick Oborne | 020 7067 0700 |
Legal Entity Identifier: 213800JM1AN62REBWA71
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") EU no.596/2014. Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
Note to editors:
Avon Rubber p.l.c. is an innovative technology group specialising in respiratory protection systems and milking point solutions through its two businesses, Avon Protection and milkrite | InterPuls. We design, test and manufacture specialist products and services to maximise the performance and capabilities of our customers.
Avon Protection is the recognised global leader in advanced Chemical, Biological, Radiological and Nuclear (CBRN) respiratory protection systems for the world's Military, Law Enforcement and Fire markets.
milkrite | InterPuls is a global leader providing complete milking point solutions to customers across the world with the aim of improving every farm it touches.
For further information, please visit our website: www.avon-rubber.com