Avon Protection Regulatory News (AVON)

13 Apr 2005 07:00

Avon Rubber PLC13 April 2005 13 April 2005 Avon Rubber p.l.c STATEMENT RE MG ROVER Following recent developments at MG Rover the Board of Avon Rubber p.l.c. hasissued the following statement. Our business with and exposure to MG Rover reduced significantly as a result oftheir decision to source vibration management products in China from October2004. In the event that production does not recommence, sales of hoses valued at £1.4million to MG Rover from our continental European plants for the six months toour financial year end on 30 September 2005, will be lost. This representsaround 1% of group sales and would have an impact of approximately £0.6 millionon gross profit. Current receivables outstanding together with dedicated inventory and toolingrelating to MG Rover amount to £0.9 million. Depending on developments at MGRover, a provision for these items may be made as part of our first half yearresults which will be announced on 19 May 2005. Commenting on the statement, Steve Willcox, Chief Executive said: "For the sake of all stakeholders in MG Rover, we hope that a positive wayforward can be achieved. Our European Automotive activities are currentlyundergoing reorganisation in line with the details given at the Annual GeneralMeeting in January 2005 and we would not expect any further reorganisation to benecessary as a consequence of the situtation facing MG Rover." < ends > Contact Information: Avon Rubber p.l.cSteve Willcox, Chief Executive 01225 861100Terry Stead, Finance Director (Local/Trade Press) 01225 861100Jayne Hunt Weber Shandwick Square MileRichard Hews / Rachel Taylor / Stephanie Badjonat 020 7067 0700 This information is provided by RNS The company news service from the London Stock Exchange