17th May 2007 07:01
Avon Rubber PLC17 May 2007 Strictly embargoed until 07:00 17 May 2007 AVON RUBBER p.l.c. UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2007 31 March 31 March 2007 2006 £Millions £Millions _________ _________ CONTINUING OPERATIONS: REVENUE 37.7 33.8 OPERATING (LOSS)/PROFIT (0.7) 0.5 PROFIT FOR THE PERIOD 0.1 0.1 (LOSS)/EARNINGS PER SHARE: Basic (0.5)p (58.3)p Continuing operations (0.5)p 0.1p DIVIDENDS PER SHARE 3.7p 3.7p O Group returns to profit following loss of £5.9million in 6 months to 30 September 2006 O Dividend maintained O First major orders for new US military respirator delivered and follow on orders received O Operational performance improving O Strong performance from Dairy and Engineered Fabrications O Board restructured to reflect new Group focus Commenting on the results, Terry Stead, Chief Executive said: "The first half of the year has seen the continuation of our transition to agroup focused on protection and defence and dairy markets. We are beginning tosee the benefits of our new respiratory protection products moving intoproduction whilst still supplying our legacy respirators from the UK. Our dairy business in North America continues to perform well and the Europeandairy operation has improved considerably, while Engineered Fabrications continues togrow profitably. The North American respiratory protection facility in Cadillac,Michigan has become fully operational. Some additional costs were incurred inthe first quarter in achieving this, but we have seen an improving operationalperformance in the second quarter and expect the improvement to continue asvolumes increase. In the UK we are operating with a higher than acceptable costbase which management will continue to address. The first half of this year has seen a significant improvement over the secondhalf of last year despite the additional cost of introducing our new products.The Board is confident that, whilst timing remains uncertain, significant growth,particularly in respiratory protection, will be achieved." For further enquiries, please contact: Avon Rubber p.l.c Terry Stead, Chief Executive 020 7067 0700Peter Slabbert, Group Finance Director (until 1.00 p.m.) (Local/Trade Press) Fiona Stewart 01225 896871 Weber Shandwick Financial Richard Hews 020 7067 0700Rachel Taylor Hannah Marwood An analyst meeting will be held at 9.30 a.m. at the offices of Weber ShandwickFinancial, Fox Court, 14 Gray's Inn Road, WC1X 8WS NOTES TO EDITORS: Avon Rubber p.l.c. is an international polymer engineeringgroup adding value through material, manufacturing and industry sectorexpertise. The Group is currently capitalised at approximately £50million. AVON RUBBER p.l.c. UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 MARCH 2007 INTRODUCTION Following our major strategic restructuring which has repositioned the Group inour chosen markets of respiratory protection, dairy and engineered fabrications,the half year to 31 March 2007 has seen the Group make significant progresstowards our strategic objectives. We successfully completed the important milestone of the delivery of the firstLow Rate Initial Production (LRIP) order for the new generation M50 militaryrespirators for the US Department of Defense (DoD) and received further followon orders from this customer. We achieved NIOSH certification for the nonmilitary C50 version of this product to complement the existing European CEcertification and have started to receive orders for this mask. Operationally wemade significant improvements in the transition to volume production of bothrespirators and filters in our Cadillac facility during this period,particularly in the second quarter. Our UK facility at Hampton Park West alsoshowed improvement, benefiting from the cost reductions made in the previousfinancial year. Despite these reductions our overall UK cost base remains toohigh and management will continue to address this. In addition, we continue tobe impacted negatively by the depressed fire protection market in the USA and bythe inherent uncertainty in the timing of sales to military and othergovernmental organisations. This overall progress is reflected in our return to profit for the period of£138,000 (2006: £147,000) following the loss from continuing businesses of£5,872,000 in the second half of last year. RESULTS Revenue increased by £3,983,000 (12%) to £37,749,000 from £33,766,000 in the sixmonths to 31 March 2006 but by 21% from the second half of the 2006 financialyear. We incurred an operating loss of £713,000 (2006: £492,000 profit) in theperiod which again was a significant improvement from the £2,953,000 loss(including £464,000 of reorganisation costs) in the second half of the 2006financial year. Net interest costs fell from £1,801,000 in 2006 to £417,000 reflecting thereduced debt following the disposal of Automotive in August 2006. The financecredit arising from the accounting for pensions remained largely unchanged at£1,251,000 (2006: £1,260,000). This resulted in a profit before tax of £121,000(2006: £49,000 loss) and a profit after tax of £138,000 (2006: £147,000). The loss per share on continuing operations was 0.5p (2006: 0.1p earnings). Net debt increased from £1.1million at the 2006 year end to £10.0million at 31March 2007. Cash outflows in the first half held over from the sale of theAutomotive business, the sale of our UK property and restructuring charges, allreflected in the 2006 report and accounts, amounted to £3.4million. We investeda further £3.4million (2006: £5.1million) in fixed assets mainly in the Cadillacfacility and the development of our filter and respiratory protection productrange. Whilst we will continue to invest in order to access further markets witha more comprehensive product range, we expect the rate of capital spend toreduce going forward. Working capital increased due to both the increased levelof business compared to the second half of last year and seasonal factors. Following the disposal of Automotive in 2006, the Group has amended the primarysegmental analysis to reflect the remaining business sectors of Protection andDefence, Dairy and Other Engineered Products. Protection and Defence The Protection and Defence segment includes our respiratory protectionbusinesses in the US and UK and our US based fabrications operation. Revenue of£19,327,000 (2006: £18,045,000) grew by 7.1% from the corresponding period lastyear and by 34.3% from the preceding six months. A loss of £794,000 (2006:£943,000 profit) was incurred. Revenue growth came primarily from the new Cadillac facility which supplied theinitial LRIP order of M50 military respirators and further follow on orders fromthe DoD for the M53 derivative. Significant resources were applied in the firstquarter to ensure the success of this first stage of what we believe will be along term revenue stream. We did, however, make rapid progress during the secondquarter towards achieving targeted manufacturing process efficiencies and weenter the second half year with a significantly improved capability and costbase. Our UK operation continued to trade profitably despite a slower thanexpected take up by the UK government of the newly introduced rapid escape hood.These shortfalls were offset by continuing demand, particularly from the MOD forour existing products. Challenging market conditions remained for ISI supplyingthe fire services market in the US with delays in the release of Federal grantsthroughout the 2006 calendar year. In addition the proposed introduction of newregulatory standards in September 2007 has led to delays in procurementdecisions. We expect to see some benefits later in the calendar year as grantfunds are spent but the extent to which this will benefit the current financialyear is unclear. Demand from the US military for our fuel and water storage tanks has increased,resulting in further progress being achieved at our Mississippi basedfabrications business. We are optimistic that this trend will continue and thatprofitable long term revenue streams will be secured from these products. Dairy Our dairy business remains stable and consistent. Revenue was largely unchangedat £9,670,000 (2006: £9,579,000) with the negative effect of the weaker USdollar on sales from our US business offsetting revenue growth in the Europeanoperation. Operating profit increased from £893,000 in 2006 to £1,281,000 withthe revenue growth in Europe coming primarily from our higher margin own brandMilk-Rite products. This business also benefited from the lower cost base in ourHampton Park West facility following the restructuring last year. Other Engineered Products This segment includes our aerosol gasket business, the remaining businessmachines products and our mixing operation. Revenue increased to £8,752,000(2006: £6,142,000) with increased sales of mixed rubber to Automotive now beingrecorded as external revenue. The significantly weaker US dollar prevented ourachieving planned growth in sales of aerosol gaskets although opportunitiesremain in that market. The losses incurred in these businesses reduced to£1,200,000 (2006: £1,344,000) due to cost reductions. We remain committed tofinding solutions to eliminate these losses. Dividends The Board announces an unchanged interim dividend of 3.7p per share payable on 9July 2007 to holders of ordinary shares on the register at the close of businesson 8 June 2007. The Board recognises that the dividend remains uncovered bycurrent earnings but continues to believe that progress in current trading andopportunities available to the Group will lead to the restoration of cover indue course. Pensions The financial position of our retirement benefit obligations as measured underIAS 19 (International Accounting Standard 19 Employee Benefits) has improvedduring the period with the deficit reducing to £7.7million from £14.6million atSeptember 2006. This gain is a combination of updated asset values and, moreimportantly an increase in the discount rate applied to the UK pensionobligations from 5.0% to 5.4%, in line with market movements. The triennialvaluation of this fund effective 1 April 2006 has also been finalised and it ispleasing to report that improved asset returns together with the effects ofrecent actions has led to a fund surplus of £2.4million (2003 valuation£45.4million deficit) despite more prudent mortality assumptions. The Group willcontinue to work closely with the Trustees of the fund to manage this risk. BOARD CHANGES As the Group makes its transition to be focused on the protection and defenceand dairy markets, the Board has felt the need to alter its composition toreflect these changes. In particular we have sought independent directors withexperience of operating in defence and related markets. In January Sir Richard Needham was appointed as Chairman. Sir Richard wasNorthern Ireland Economy Minister for seven years and UK Minister for Trade fora further three years. He was International Director for GEC-Marconi for twoyears and a Non-Executive Director with Meggitt plc for five years. Hisexperience is proving invaluable in supporting the changing Group. We are now delighted to announce a further significant addition to the Boardwith the appointment of David Evans as a Non-Executive Director with effect from1 June 2007. David is a Non-Executive Director of Chemring Group PLC, havingpreviously been their Chief Executive during a period of significant growth.Earlier in his career he spent seventeen years with GEC-Marconi in the defenceindustry and has been a member of the Executive Committee of the DefenceManufacturers' Association for the last nine years. OUTLOOK The first half of the year has seen the continuation of our transition to agroup focused on protection and defence and dairy markets. We are beginning tosee the benefits of our new respiratory protection products moving intoproduction whilst still supplying our legacy respirators from the UK. Our dairy business in North America continues to perform well and the Europeandairy operation has improved considerably, while Engineered Fabricationscontinues to grow profitably. The North American respiratory protection facilityin Cadillac, Michigan has become fully operational. Some additional costs wereincurred in the first quarter in achieving this, but we have seen an improvingoperational performance in the second quarter and expect the improvement tocontinue as volumes increase. In the UK we are operating with a higher thanacceptable cost base which management will continue to address. The first half of this year has seen a significant improvement over the secondhalf of last year despite the additional cost of introducing our new products.The Board is confident that, whilst timing remains uncertain, significantgrowth, particularly in respiratory protection, will be achieved. Independent review report to Avon Rubber p.l.c Introduction We have been instructed by the company to review the financial information forthe six months ended 31 March 2007 which comprises a consolidated incomestatement, consolidated statement of recognised income and expense, consolidatedbalance sheet information as at 31 March 2007, consolidated cash flow statement,and associated notes. We have read the other information contained in theinterim report and considered whether it contains any apparent misstatements ormaterial inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The Listing Rulesof the London Stock Exchange require that the accounting policies andpresentation applied to the interim figures should be consistent with thoseapplied in preparing the preceding annual accounts except where any changes, andthe reasons for them, are disclosed. This interim report has been prepared in accordance with the basis set out inNote 1. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the disclosed accounting policies havebeen applied. A review excludes audit procedures such as tests of controls andverification of assets, liabilities and transactions. It is substantially lessin scope than an audit and therefore provides a lower level of assurance.Accordingly we do not express an audit opinion on the financial information.This report, including the conclusion, has been prepared for and only for thecompany for the purpose of the Listing Rules of the Financial Services Authorityand for no other purpose. We do not, in producing this report, accept or assumeresponsibility for any other purpose or to any other person to whom this reportis shown or into whose hands it may come save where expressly agreed by ourprior consent in writing. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 March 2007. PricewaterhouseCoopers LLPChartered Accountants and Registered AuditorsBristol17 May 2007 CONSOLIDATED INCOME STATEMENT Note Half year to Half year to Year to 31 March 07 31 March 06 30 Sept 06 (unaudited) (unaudited and restated see note 2) £'000 £'000 £'000 _____________________________________________________________________________________________Continuing operations Revenue 2 37,749 33,766 65,042Operating (loss)/profit from continuing operations 2 (713) 492 (2,461)__________________________________________________________________________________________________________________________________________________________________________________________Operating (loss)/profit is analysed as: Before exceptional items (713) 492 (1,997)Reorganisation costs - - (464)_____________________________________________________________________________________________ Interest receivable 3 - 100 123Interest payable 3 (417) (1,901) (3,493)Other finance income 3 1,251 1,260 2,151_____________________________________________________________________________________________Profit/(loss) before tax 121 (49) (3,680)Taxation 4 17 196 (2,045)_____________________________________________________________________________________________Profit/(loss) for the period from continuing operations 138 147 (5,725) Discontinued operations Loss for the period from discontinued operations - (16,024) (13,402) _____________________________________________________________________________________________Profit/(loss) for the period 138 (15,877) (19,127)_____________________________________________________________________________________________ Profit/(loss) attributable to minority interest 273 107 (209)Loss attributable to equity shareholders (135) (15,984) (18,918)_____________________________________________________________________________________________ 138 (15,877) (19,127)_____________________________________________________________________________________________ Loss per share expressed in pence per share 6 Basic (0.5) (58.3) (68.9)Diluted (0.5) (58.3) (68.9) (Loss)/earnings per share from continuing operations Basic (0.5) 0.1 (20.1)Diluted (0.5) 0.1 (20.1) CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE Half year to Half year to Year to 31 March 07 31 March 06 30 Sept 06 (unaudited) (unaudited) £'000 £'000 £'000_______________________________________________________________________________________________ Profit/(loss) for the period 138 (15,877) (19,127)_______________________________________________________________________________________________ Actuarial gain/(loss)recognised in retirement benefit scheme 5,527 11,029 (2,075) Movement on deferred tax relating to retirement benefit liabilities - - 115 Net exchange differences offset in reserves (1,610) 372 (809)_______________________________________________________________________________________________ Net gains/(losses) not recognised in income statement 3,917 11,401 (2,769) _______________________________________________________________________________________________ Total recognised income/(expense) for the period 4,055 (4,476) (21,896) _______________________________________________________________________________________________ Attributable to: Equity shareholders 3,782 (4,583) (21,687)Minority interest 273 107 (209)_______________________________________________________________________________________________ Total recognised income/(expense) for the period 4,055 (4,476) (21,896) _______________________________________________________________________________________________ Adoption of IAS 39 attributable to: Equity shareholders - (12) (12)Minority interests - - -_________________________________________________________________________________________________ - (12) (12)_________________________________________________________________________________________________ CONSOLIDATED BALANCE SHEET Note Half year to Half year to Year to 31 March 07 31 March 06 30 Sept 06 (unaudited) (unaudited) £'000 £'000 £'000_________________________________________________________________________________________________ Assets Non-current assets Goodwill 5,294 6,338 5,701Intangible assets 12,086 10,456 11,353Property, plant and equipment 21,247 31,613 20,864Trade and other receivables - 597 -Deferred tax assets 1,053 2,620 1,101_________________________________________________________________________________________________ 39,680 51,624 39,019_________________________________________________________________________________________________ Current assets Inventories 12,929 9,072 11,257Trade and other receivables 16,889 16,492 15,530Cash and cash equivalents 1,876 7,808 6,893_________________________________________________________________________________________________ 31,694 33,372 33,680_________________________________________________________________________________________________ Assets classified as held for sale - 93,182 -_________________________________________________________________________________________________ 31,694 126,554 33,680_________________________________________________________________________________________________ Liabilities Current liabilities Financial liabilities - borrowings 11,906 44,027 8,000 - derivative financial instruments 15 26 -Trade and other payables 19,011 12,935 18,505Current tax liabilities 621 3,008 736_________________________________________________________________________________________________ 31,553 59,996 27,241_________________________________________________________________________________________________ Liabilities directly associated with assets classified as held for sale - 45,149 -_________________________________________________________________________________________________ 31,553 105,145 27,241_________________________________________________________________________________________________ Net current assets 141 21,409 6,439_________________________________________________________________________________________________ Non-current liabilities Financial liabilities - borrowings - 20,246 -Deferred tax liabilities 2,260 1,682 2,293Other non current liabilities - 1,153 1,071Retirement benefit obligations 7,712 4,952 14,598Provisions 2,880 2,879 3,426_________________________________________________________________________________________________ 12,852 30,912 21,388_________________________________________________________________________________________________ Net assets 26,969 42,121 24,070_________________________________________________________________________________________________ Shareholders equity Ordinary shares 28,340 28,127 28,275Share premium 34,212 34,072 34,191Revaluation reserve - 1,751 -Capital redemption reserve 500 500 500Translation reserve (1,814) 978 (203)Profit and loss account (35,059) (24,187) (39,249)_________________________________________________________________________________________________ Equity shareholders funds 7 26,179 41,241 23,514Minority interests (equity interests) 790 880 556_________________________________________________________________________________________________ Total equity 26,969 42,121 24,070_________________________________________________________________________________________________ CONSOLIDATED CASH FLOW STATEMENT Note Half year to Half year to Year to 31 March 07 31 March 06 30 Sept 06 (unaudited) (unaudited) £'000 £'000 £'000_____________________________________________________________________________________________Cash flows from operating activities Cash (used in)/generated from operations 8 (3,762) 6,328 7,835Interest received - 100 123Interest paid (258) (1,382) (3,890)Tax (paid)/received (178) 348 (1,679)_____________________________________________________________________________________________Net cash (used in)/generated from operating activities (4,198) 5,394 2,389_____________________________________________________________________________________________Cash flows from investing activities Proceeds from sale of subsidiaries (less cash transferred) - - 51,972 Proceeds from sale of property, plant and equipment 3 38 12,970 Purchase of property, plant and equipment (2,032) (4,737) (8,963) Capitalised development costs (1,408) (3,641) (5,791)_____________________________________________________________________________________________Net cash (used in)/generated from investing activities (3,437) (8,340) 50,188_____________________________________________________________________________________________Cash flows from financing activities Net proceeds from issues of ordinary share capital 86 8 275 Net movements in loans and finance leases 3,921 1,903 (51,264) Decrease in derivatives - 50 24Dividends paid to shareholders (1,326) (1,316) (2,332)_____________________________________________________________________________________________Net cash generated from/(used in) financing activities 2,681 645 (53,297) _____________________________________________________________________________________________ Effects of exchange rate changes (63) 15 (89)_____________________________________________________________________________________________Net decrease in cash and cash equivalents (5,017) (2,286) (809) Cash and cash equivalents at beginning of the period 6,893 7,702 7,702_____________________________________________________________________________________________ Cash and cash equivalents at end of the period 9 1,876 5,416 6,893_____________________________________________________________________________________________ NOTES TO THE INTERIM FINANCIAL STATEMENTS 1. Basis of preparation These financial statements have been prepared in accordance with the ListingRules of the Financial Services Authority. The results for the half year to 31March 2006 and 31 March 2007 are unaudited. The comparative information for theyear ended 30 September 2006 does not constitute the company's statutoryaccounts for that year but is derived from those accounts. The accountingpolicies used are as stated in the financial statements for the year ended 30September 2006, which are available on our website www.avon-rubber.com. TheGroup has chosen not to adopt early IAS 34 "Interim Financial Statements" inpreparing its 2007 interim statement. These financial statements were approvedby the Board of Directors on 16 May 2007. 2. Segmental analysis Due to the differing natures of the products and their markets, Avon Rubberp.l.c.'s primary reporting segment is by business. The secondary reportingformat comprises the geographical segments by origin. Half year to Half year to Year to 31 March 07 31 March 06 30 Sept 06 (unaudited) (unaudited and restated) £'000 £'000 £'000_____________________________________________________________________________________________ Turnover by business sector Protection and Defence 19,327 18,045 32,438Dairy 9,670 9,579 19,116Other Engineered Products 8,752 6,142 13,488 _____________________________________ 37,749 33,766 65,042 _____________________________________Operating (loss)/profit by business sector Protection and Defence (794) 943 (189)Dairy 1,281 893 1,619Other Engineered Products (1,200) (1,344) (3,427) _____________________________________ (713) 492 (1,997) _____________________________________Exceptional operating items Protection and Defence - - 896Dairy - - 789Other Engineered Products - - (2,149) _____________________________________ - - (464) _____________________________________Total operating (loss)/profit from continuing operations (713) 492 (2,461) _____________________________________ Revenue by origin Europe 15,217 12,001 22,266 North America 22,532 21,765 42,776 _____________________________________ 37,749 33,766 65,042 _____________________________________ Following the disposal of Zatec and the closure of the UK business machines business in the second half of 2006, results of those operations have been reclassified from continuing to discontinued operations for the period ended 31 March 2006. The exceptional operating expenses in 2006 can be analysed as follows: Profit on sale and leaseback of the facility at Hampton Park West, Melksham,UK 4,415 Impairment of UK mixing facility (3,442) Restructuring of UK Protection and Defence and Other Engineered Products continuing operations (1,437) ________ (464) ________ 3. Interest and similar charges Half year to Half year to Year to 31 March 07 31 March 06 30 Sept 06 £'000 £'000 £'000 _______________________________________________________________________________________Bank loans and overdrafts (416) (1,572) (2,907)US dollar private placement - (305) (509)Amortisation of loan issue costs - (11) (18)Other interest charges (1) (13) (59) ________________________________________ Total interest payable (417) (1,901) (3,493)Interest receivable - 100 123 ________________________________________ (417) (1,801) (3,370) ________________________________________ Other finance income represents the excess of the expected return on pensionplan assets over the interest cost relating to retirement benefit obligations. Half year to Half year to Year to 31 March 07 31 March 06 30 Sept 06 £'000 £'000 £'000 _______________________________________________________________________________________ Interest cost: UK Scheme (6,432) (6,842) (12,345)Expected return on plan assets: UK Scheme 7,752 8,282 14,943Other finance cost: USA Scheme (69) (180) (447) __________________________________ 1,251 1,260 2,151 __________________________________ 4. Taxation The split of the tax (credit)/charge between UK and overseas is as follows: Half year to Half year to Half year to Half year to 31 March 07 31 March 06 31 March 06 31 March 06 Continuing Continuing Discontinued Total £'000 £'000 £'000 £'000_________________________________________________________________________________________United Kingdom (33) - - -Overseas 16 (196) 1,856 1,660_________________________________________________________________________________________ (17) (196) 1,856 1,660_________________________________________________________________________________________ 5. Dividends The Directors are proposing an interim dividend in respect of the half yearending 31 March 2007 of 3.7p which will absorb an estimated £1,024,000 ofshareholder's funds. The dividend will be paid on 9 July to shareholders on theregister on 8 June 2007. 6. Loss per share Basic loss per share is based on a loss attributable to ordinary shareholders of£135,000 (2006: £15,984,000) and 27,637,000 (2006: 27,406,000) ordinary shares,being the weighted average of the shares in issue during the period on whichdividends are paid. The 2006 earnings per share on continuing operations is based on a profit of£40,000. The loss per share in 2006 on discontinued operations was 58.4p and is based ona loss of £16,024,000. The company has dilutive potential ordinary shares in respect of the SharesaveOption Scheme and the Performance Share Plan. The diluted loss per share is notmaterially different to the basic loss per share. 7. Shareholders' funds and statement of changes in shareholders equity Half year to Half year to Year to 31 March 07 31 March 06 30 Sept 06 (unaudited) (unaudited) £'000 £'000 £'000 _____________________________________________________________________________________________ At the beginning of the period 23,514 46,934 46,934Loss for the period attributable to equity shareholders (135) (15,984) (18,918) Dividends (1,326) (1,315) (2,331)Actuarial gain recognised in retirement benefit schemes 5,527 11,029 (2,075) Movement on deferred tax relating to retirement benefit liabilities - - 115 Net exchange differences offset in reserves (1,610) 372 (809)New share capital subscribed 85 8 275Movement in respect of employee share scheme 124 197 323_____________________________________________________________________________________________ At the end of the period 26,179 41,241 23,514_____________________________________________________________________________________________ 8. Cash (used in)/generated from operations Half year to Half year to Year to 31 March 07 31 March 06 30 Sept 06 (unaudited) (unaudited) £'000 £'000 £'000 _____________________________________________________________________________________________ Continuing operations Profit/(loss) for the financial period 138 147 (5,725)Adjustments for: Tax (17) (196) 2,045Depreciation 1,109 1,456 1,803Impairment of fixed assets - - 3,442Amortisation and impairment of intangibles 444 462 1,132 Net interest expense 417 1,801 3,370Other finance income (1,251) (1,260) (2,151)Loss/(profit) on disposal of property, plant and equipment 4 - (4,391)Movements in working capital and provisions (3,808) (1,049) (2,830)Other movements 16 730 (417)_____________________________________________________________________________________________ Cash (used in)/generated from continuing operations (2,948) 2,091 (3,722)_____________________________________________________________________________________________ Discontinued operations Loss for the financial period - (16,024) (13,402)Adjustments for: Tax - 1,856 (582)Depreciation - 2,809 5,047Loss on sale of subsidiaries - - 18,026Amortisation and impairment of intangibles - 744 1,128Movements in working capital and provisions (814) 14,828 781Other movements - 24 559_____________________________________________________________________________________________Cash (used in)/generated from discontinued operations (814) 4,237 11,557_____________________________________________________________________________________________Cash (used in)/generated from operations (3,762) 6,328 7,835_____________________________________________________________________________________________ 9. Analysis of net debt As at Cash Exchange As at 30 Sep 06 Flow movements 31 Mar 07 £'000 £'000 £'000 £'000________________________________________________________________________________________Cash at bank and in hand 1,823 (429) (46) 1,348Current asset investments classified as cash equivalents 5,070 (4,510) (32) 528________________________________________________________________________________________ Cash and cash equivalents 6,893 (4,939) (78) 1,876Debt due within 1 year (8,000) (3,921) 15 (11,906)________________________________________________________________________________________ (1,107) (8,860) (63) (10,030)________________________________________________________________________________________ Borrowing facilities (expiring within one year) Total facility Utilised Undrawn £'000 £'000 £'000________________________________________________________________________________________ United Kingdom 14,000 10,949 3,051North America 2,167 957 1,210Utilised in respect of guarantees 382 382 -________________________________________________________________________________________ 16,549 12,288 4,261________________________________________________________________________________________ All of the above facilities are subject to annual review and have commitmentperiods which end within the next twelve months. 10. Shareholder communication Copies of this announcement are being sent to shareholders. Copies are alsoavailable from the company's registered office at Hampton Park West, SemingtonRoad, Melksham, Wiltshire. SN12 6NB, England. (Telephone +44 1225 896871), orvia the corporate website (www.avon-rubber.com). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Avon Protection