20th Nov 2013 09:50
LONDON (Alliance News) - Avon Rubber PLC Wednesday raised its dividend after reporting higher profits and revenues for its last financial year, driven by a three-year turnaround programme that saw it invest in new products and technologies.
Avon Rubber had been heavily reliant on the US Defence Department for much of its business, but has reduced its reliance on this customer by developing products for commercial markets in the US and internationally. For example, it acquired a diving rebreather systems and dive computers company back in April.
The maker of respirators, hovercraft skirts and dairy industry tubing reported a pretax profit of GBP13.2 million for the 12 months to end-September, up from GBP11.0 million a year earlier, as revenues rose to GBP124.9 million from GBP106.6 million.
Its protection and defence business accounted for 75% of the revenues, up from 70% last year, as it grew commercial market mask and filter sales and its fabrications business won more orders. It actually sold more masks and filters to the US Defence Department, but but they were a lower proportion of the unit's overall sales.
The company proposed a final dividend of 2.88 pence a share, up from 2.4p last year, bringing the total dividend for the year to 4.32p, up from 3.6p. This is based on "improved profitability, cash generation and the confidence the board has in the group's future prospects," it said.
"We expect to make further progress in both our Protection & Defence and Dairy divisions in 2014 as our clear strategic direction takes further effect."
Avon Rubber shares were down 0.2% at 580 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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