6th Aug 2014 06:47
LONDON (Alliance News) - Avon Rubber PLC Wednesday said it has continued to trade in line with management expectations over the last few months, and after taking a hit from the strength of sterling, it still expects a full-year result in line with expectations.
The manufacturer of rubber-based products said trading since the first half of the year to March 31, has continued to be strong, supported by buoyant growth in its protection & defence business, and improving market conditions in its dairy business, particularly in China.
"The board remains confident that the outturn for the full year, after the impact of an estimated GBP1.0 million currency headwind, will be in line with market expectations," the company said.
Avon Rubber said its protection & defence business has won a further GBP25 million worth of orders from the US Department of Defense since the first half of the year, with expected sales secured for the current financial year, while providing a "healthy open order book for next year", it said.
"We have also seen an increased level of non-DoD orders from customers in the Americas, in particular in the fire services market for our newly approved Deltair SCBA," said Avon Rubber in its statement.
The company said market conditions for its dairy business remain favourable, with investments made last year now delivering benefits as expected.
"In particular our cluster exchange service offering continues to gain momentum in both North America and Europe, and we have seen positive third quarter trading in our Chinese business after a slow first half of the year," it said.
Avon Rubber said the relocations of operations from its Lawrenceville facility in Georgia, US to its Cadillac facility, is progressing to plan, with the first shipments of its new Deltair product already made from its Cadillac facility.
The company said it has seen strong conversion of profits into cash, and net debt at June 30 was significantly lower at GBP2.6 million, compared with GBP5.5 million at the end of March.
Avon Rubber said it will release its full-year results on November 19.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Avon Protection