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23 Oct 2008 09:34
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The following amendment has been made to RNS numberΒ 4911G: In the second paragraph, orders on hand for delivery should have been stated in US dollars rather than sterling. The full corrected version of the statement is shown below.
23Β October 2008
AVONΒ RUBBER p.l.c.
("Avon", the "Group" or the "Company")
PERIOD ENDΒ UPDATEΒ
The Board is issuing this update following the Company's 30 September 2008Β financialΒ year-end.Β
Avon is pleased to report that its CadillacΒ MichiganΒ facility, which produces the M50 respiratorΒ single sourceΒ for the US Department of Defense, has generated a satisfactory profit in the final quarter following the substantial resolution of production issues andΒ cost overruns. With orders of $25Β million on hand for delivery and with further US Government funding of $42.6Β million approvedΒ in 2009Β for thisΒ 10 yearΒ programme, we expect this improved performance to continue.Β
Our Dairy business has continued toΒ growΒ in both our traditional US and European marketsΒ as well asΒ into newer marketsΒ such asΒ China.Β
Avon-ISIΒ which sells primarily to fire services in theΒ USΒ has, however, not met expectations in difficult market conditions. ThisΒ 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.Β
Net debt reduced to Β£15.1Β million atΒ theΒ year-end from Β£18.3Β million at 30 June 2008 with an improvement in working capital,Β despite the negative impact on borrowings of a stronger US dollar.Β
Peter Slabbert, Chief Executive, commented:
"The significant turnaround in the performance of our Cadillac operation has enabled the Group toΒ start the 2009 financial year with confidence of a return to profitability after what hasΒ been a difficult 2008."
ENDΒ >
For further enquiries please contact:Β
AvonΒ 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.comΒ
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