3rd Oct 2014 06:50
LONDON (Alliance News) - Avon Rubber PLC Friday said a strong second half of the year has left it confident of reporting a full-year results "comfortably ahead" of market expectations for its financial year just ended.
In a pre-closing trading statement, the manufacturer of rubber-based products said that foreign-exchange pressure from the strong pound has eased since its last trading update back in August. Therefore, it is expecting to report a better performance than previously forecast for the year ended September 30.
Earlier this year, the company said strong trading was being supported by buoyant growth in its protection and defence business, and improving market conditions in its dairy business, particularly in China.
Avon Rubber said Friday that its protection and defence business achieved a "richer sales mix" than previously expected, driven mostly by a Middle Eastern order that it was able to ship earlier than expected, it said.
"Operational flexibility to meet this customer's requirement at short notice was achieved by switching production from [US Department of Defense] orders and means that we will carry forward a stronger DoD order book into the 2015 financial year, with order coverage for the first half of 2015," the company said in its statement Friday.
Avon Rubber said its dairy business has been trading ahead of last year, benefiting from investments it made in the business last year.
"The innovative Cluster Exchange service continues to make excellent progress in both North America and Europe," it said.
Avon Rubber said it held net cash of around GBP2.9 million at year end, compared with a net debt of GBP10.9 million this time last year.
"The group has driven a strong conversion of profits into cash, including accelerated payments from a major customer ahead of its financial year-end," the company said.
Avon Rubber said it will announce its full-year results on November 19.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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