Avon Rubber PLC Trading Update (3577J)
September 09 2016 - 2:00AM
UK Regulatory
TIDMAVON
RNS Number : 3577J
Avon Rubber PLC
09 September 2016
Strictly embargoed until 07:00 Friday 9 September 2016
AVON RUBBER p.l.c. ("Avon", the "Group" or the "Company")
Trading update for the 5 months ended 31 August 2016
The Board expects 2016 full year Profit before Tax to be in line
with current market expectations.
Protection & Defence
In Protection & Defence, we are pleased to announce that our
unique CBRN / CO Escape Hood has received NIOSH approval and we
have received an order worth $9m from a major US city police
department for this new product, the majority of which will be
delivered this financial year.
Mask systems production has, as planned, been focused on
fulfilling deliveries to the US Department of Defense under our 10
year sole source contract for the JSGPM M50 mask systems. We
continue to see a number of higher margin export opportunities for
military masks although, as always, the timing of order receipt is
unpredictable; these opportunities remain live and are being
progressed, albeit more slowly than previously expected, with the
result that we now expect to receive and deliver these orders in
our 2017 financial year.
Dairy
General market conditions for dairy farmers have been weak for
the majority of the period, as milk prices have been low. This
cyclical market dynamic has, as expected, reduced demand for our
consumable products as farmers overuse product to extend its life.
This has been more noticeable in the InterPuls business where the
nature of the product is more capital / semi-consumable than
consumable. Milk prices in our major markets do, however, appear to
have bottomed-out and have started to improve in the final
quarter.
The programme for the roll out of InterPuls products through
existing Milkrite distribution in the US has commenced with the
first revenues seen in the final quarter of the financial year.
This, together with our expectation that the recent improvement in
milk price will continue and positively impact demand for our
products, leaves the Board confident of the ability of the Dairy
business to make progress in 2017.
Commenting, Rob Rennie, Chief Executive Officer said; "The 2016
result demonstrates the robustness of our business and we exit the
year as a stronger business looking forward to the many
opportunities available to us in 2017."
Full year results for the year ended 30 September 2016 will be
announced on 16 November 2016.
For further enquiries, please contact:
Avon Rubber p.l.c.
Rob Rennie, Chief Executive Officer 01225 896870
Andrew Lewis, Group Finance Director 01225 896830
Sarah Matthews-DeMers, Associate Group Finance Director 01225 896835
Weber Shandwick Financial
Nick Oborne / Tom Jenkins 020 7067 0700
Note to editors: The Group has transformed itself over recent
years into an innovative design and engineering group specialising
in two core markets, Protection & Defence and Dairy. With a
strong emphasis on research and development we design, test and
manufacture specialist products from a number of sites in the US
and Europe, serving markets around the world. We achieve this
through nurturing the talent and aspirations of our employees to
realise their highest potential.
Avon Protection is the recognised global market leader in
advanced Chemical, Biological, Radiological and Nuclear (CBRN)
respiratory protection systems technology for the world's military,
homeland security, first responder, fire and industrial markets.
With an unrivalled pedigree in mask design dating back to the
1920's, Avon Protection's advanced products are the first choice
for Personal Protective Equipment (PPE) users worldwide and are
placed at the heart of many international defence and tactical PPE
deployment strategies. Our expanding global customer base now
includes military forces, civil and first line defence troops,
emergency service teams and industrial, marine, mineral and oil
extraction site personnel. All put their trust in Avon's advanced
respiratory solutions to shield them from every possible threat
whether land, air or sea based.
Our world-leading Dairy supplies business and its Milkrite
InterPuls brand have a global market presence. With a long history
of manufacturing liners and tubing for the dairy industry, we have
become the leading innovator and designer for products and services
right at the heart of milking. The acquisition of InterPuls in
2015, a specialist in electromechanical milking components, such as
pulsators, milk meters, automatic cluster removers, milking
clusters, washing systems, vacuum pumps, bucket milkers and
pipeline system components has added significantly to our product
range, making us the complete milking point solution provider.
Working with the leading scientists and health specialists in the
global dairy industry we continue to invest in technology to
further improve the milking process and animal welfare. Our
products provide exceptional results for both the animal and the
milker, making the milk extraction process more efficient. As our
market share and milking experience continue to grow, so does our
global presence.
For further information please visit the Group's website
www.avon-rubber.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTEALNPEAAKEFF
(END) Dow Jones Newswires
September 09, 2016 02:00 ET (06:00 GMT)
Avon Protection (LSE:AVON)
Historical Stock Chart
From Mar 2024 to Apr 2024
Avon Protection (LSE:AVON)
Historical Stock Chart
From Apr 2023 to Apr 2024