29th Apr 2015 08:56
LONDON (Alliance News) - Avon Rubber PLC on Wednesday reported a rise in pretax profit in the first half of its financial year on the back of improved revenue and lower costs, and said its chief executive will step down in September.
Avon said its pretax profit in the six months to the end of March was GBP8.4 million, compared to GBP5.7 million a year earlier, when the profit was pushed lower by higher administrative costs.
Revenue rose to GBP62.8 million from GBP61.5 million a year before, with strong performance in the company's dairy division driven by investments made in its routes to market and products. Avon Rubber said that order intake in its protection and defence business also was robust and that its Deltair SCBA product won market share in the US fire market.
As a result of the better profit, the group pushed up its interim dividend by 30% to 2.43 pence from 1.87 pence.
"Avon has enjoyed another positive half year, achieving a 10% increase in earnings per share against a very strong comparator period last year that included a 52,000 C50 delivery to a customer in the Middle East. Trading is normally second-half weighted in our Protection & Defence business, and we believe this will continue to be the case this year. We have a strong forward order book in Protection & Defence and believe that the momentum in Dairy will continue," said Chief Executive Peter Slabbert.
"The board therefore expects to make good progress as the year develops and to meet market expectations for the full year," he added.
In a separate statement on Wednesday, Avon said Slabbert intends to step down as chief executive and retire from the company in September.
Slabbert, who has been the chief executive for seven years, will remain in the role until September 30. The company said the search for a successor has started and it will provide an update in due course.
Avon shares were down 1.1% to 782.77 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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