16th Sep 2019 10:45
(Alliance News) - Avon Rubber PLC said Monday its has continued to trade in line with expectations in the second half of its financial year.
As a result, the company - which makes gas masks and cow milking equipment - expects to achieve its expectations for adjusted pretax profit and revenue in the year to the end of September.
Revenue is expected to rise by 4%, both on a constant currency basis and at current exchange rates from GBP165.5 million the year before.
Avon said its Avon Protection division enjoyed a strong year, driven by the performance of the Military unit, with the planned initial deliveries of an aircrew mask and and a mask and powered air system to the US Department of Defense completed.
The Law Enforcement unit's performance was stronger in the second half; however delays caused by the US government shutdown in the first half of the year will result in a year-on-year revenue decline from GBP34.5 million the prior year.
The Fire unit's second half was hurt by continued delays in the National Fire Protection Association's industry-wide approval process for the new safety standard, preventing the launch of Avon's upgraded Magnum self-contained breathing apparatus.
Meanwhile, Avon's Milkrite Interpuls segment experienced better trading conditions as the global dairy market improved from the second quarter onwards, leading to revenue growth across all business lines.
Looking ahead, Avon Rubber's acquisition of 3M Co's ballistic protection business is continuing, with the completion of US antitrust clearance. The company expects the deal to be completed in the first half of its 2020 financial year.
"We are on track to deliver a strong set of results in what has been a transformational year for Avon Rubber. The US DOD contract awards, totalling USD340 million, for the M53A1 and M69 mask systems and the acquisition of 3M's Ballistic Protection business have significantly strengthened our medium-term outlook. This leaves us well positioned to deliver further growth, both organic and M&A, in 2020 and beyond," said Chief Executive Officer Paul McDonald.
Avon Rubber will publish its annual results on November 13.
Shares in Avon Rubber were up 1.2% at 1,698.00 pence on Monday.
Related Shares:
Avon Protection