19th May 2020 12:02
(Alliance News) - Avon Rubber PLC on Tuesday reported double-digit revenue growth in the first half of its current financial year, but said its profit was hurt by exceptional costs.
The engineer and manufacturer of respiratory protection equipment said revenue in the six months to the end of March increased by 29% to GBP94.7 million from GBP73.6 million reported a year ago. On a constant currency basis, revenue rose by 9.5%.
Avon Rubber said it will be paying an interim dividend of 9.02 pence a share, up 30% from 6.94p paid a year prior.
Less positively, the company said its pretax profit dropped to GBP1.7 million from GBP3.4 million year-on-year, hurt by exceptional items of GBP12.6 million. This was due to acquisition accounting adjustments, acquisition costs, amortisation of acquired intangibles and pension costs.
Looking ahead, Avon Rubber said long-term contracts and order book of GBP115.5 million provide excellent revenue visibility going into the second half of 2020 and beyond.
"The board remains confident of achieving its expectations for the current financial year and delivering its strategy over the medium term," said Chief Executive Paul McDonald.
Avon Rubber shares were trading 4.2% higher in London on Tuesday at 2,950.00 pence each.
By Evelina Grecenko; [email protected]
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