Last checked at 2 Sep 2015 07:00
Strictly embargoed until 07:00 Wednesday 2nd September 2015
AVON RUBBER p.l.c. ("Avon", the "Group" or the "Company")
Trading update - in line with current market expectations
Protection & Defence
As expected, deliveries of our mask systems to the DOD have remained at a similar level to that seen in the first half of the year and we received our first M61 filter order of the year for 123,000 pairs which will be partially fulfilled before year end. Our non-DOD markets have performed well, without the benefit of any significant individual impact orders. A number of high value opportunities are in the pipeline and we now expect to see the benefit of these orders in 2016. Our flexible fabrications business (AEF) is expected to show a strong second half of the year.
Our development programme with the US Air Force for the JSAM MM53 continues to progress well. We have been awarded additional funding to support the next 12 months of testing with a production contract expected to follow thereafter.
As announced on 22 June 2015, the Group acquired HUDstar Systems Inc. for $5.1m payable in cash on completion. Integration of this acquisition is progressing well and we expect to see positive benefits in the next financial year.
Dairy
The positive momentum generated in the first half of 2015 in our Dairy business has continued and trading has remained strong. Take up by farms of the innovative Cluster Exchange service remains at encouraging levels in both North America and Europe.
On 5 August 2015 the Group acquired InterPuls S.p.A. for €29.75m, €25.75m payable in cash on completion and approximately €4m of assumed debt. We expect this acquisition to be earnings enhancing in our 2016 financial year.
Outlook
The continued positive performance in both areas of the business leads the Board to expect that the outturn for the current year will be in line with current market expectations.
ends
For further enquiries, please contact:
Avon Rubber p.l.c. | |
Peter Slabbert, Chief Executive | 01225 896831 |
Andrew Lewis, Group Finance Director | 01225 896830 |
Sarah Matthews-DeMers, Group Financial Controller | 01225 896835 |
Weber Shandwick Financial | |
Nick Oborne | 020 7067 0700 |
Note to editors: The Group has transformed itself over the past five years into an innovative design and engineering group specialising in two core markets, Protection & Defence and Dairy. With a strong emphasis on research and development we design, test and manufacture specialist products from a number of sites in the US and UK, serving markets around the world. We achieve this through nurturing the talent and aspirations of our employees to realise their highest potential.
Avon Protection is the recognised global market leader in advanced Chemical, Biological, Radiological and Nuclear (CBRN) respiratory protection systems technology for the world's military, homeland security, first responder, fire and industrial markets. With an unrivalled pedigree in mask design dating back to the 1920's, Avon Protection's advanced products are the first choice for Personal Protective Equipment (PPE) users worldwide and are placed at the heart of many international defence and tactical PPE deployment strategies. Our expanding global customer base now includes military forces, civil and first line defence troops, emergency service teams and industrial, marine, mineral and oil extraction site personnel. All put their trust in Avon's advanced respiratory solutions to shield them from every possible threat.
Our world-leading Dairy business and its Milkrite brand have a global market presence. With a long history of manufacturing liners and tubing for the dairy industry, Milkrite has become the leading innovator and designer for products and services right at the heart of milking. Our goal is always to improve and maintain animal health. Working with the leading scientists and health specialists in the global dairy industry we continue to invest in technology to further improve the milking process and animal welfare. Our products provide exceptional results for both the animal and the milker, making the milk extraction process run smoothly. As our market share and milking experience continue to grow, so does our global presence.
For further information please visit the Group's website www.avon-rubber.com