Avon Rubber PLC Pre-close trading update (7494A)
September 14 2018 - 2:00AM
UK Regulatory
TIDMAVON
RNS Number : 7494A
Avon Rubber PLC
14 September 2018
14 September 2018
AVON RUBBER p.l.c.
Pre-close trading update
Avon Rubber p.l.c. ("Avon" or the "Group") today issues the
following trading update ahead of its year end close on 30
September 2018.
The Board is pleased to report that trading in the second half
has continued to be strong and it expects 2018 full year adjusted
profit before tax to be in line with its expectations.
Avon Protection
Order intake momentum across Avon Protection has remained
positive with full year constant currency revenue growth expected
to be circa 7%.
In the second half, our Military business received orders from
the US Department of Defense ("DoD") for 116,000 M50 mask systems,
bringing total orders received during the year to 216,000 systems.
We expect to deliver circa 182,000 M50 mask systems to the DoD
during the current financial year, with a substantial carry-over of
83,000 systems into our 2019 financial year.
There remains an active pipeline of incremental contract
opportunities across the Military business and we remain well
placed to make further progress in capitalising on our leading
military position and product range.
Law Enforcement has continued to deliver growth across the
portfolio in all geographies following the launch of our powered
air product range. Tougher market conditions have continued to
impact Fire performance in the second half of the year.
milkrite | InterPuls
The global dairy market environment has remained positive and we
have seen improved trading conditions in North America in the
second half. As a result, full year constant currency revenue
growth is expected to be circa 4%.
PCI and Farm Services have continued to perform well and in line
with the trends in the first half. Interface performance has
recovered in the second half given the improved market conditions
in North America and the acquisition of the distribution rights to
the Merrick's calf nurser product line in June for a total cost of
$2.1m.
Cash conversion
Strong operational cash generation has been maintained with
EBITDA cash conversion expected to be circa 100%. The year end cash
position will reflect the costs relating to the acquisition of the
Merrick's calf nurser product line.
Commenting, Paul McDonald, Chief Executive Officer, said:
"The Group's momentum has carried over into the second half of
the year with Avon Protection continuing to benefit from
opportunities across its product portfolio and customer base, and
an improved overall performance from milkrite | InterPuls following
the recovery in the North American market.
Our strong order book provides good visibility going into the
new financial year and the business is well positioned to deliver
further growth and take advantage of new product opportunities to
build a stronger business for the future."
Full year results for the year ended 30 September 2018 will be
announced on 14 November 2018.
For further enquiries, please contact:
Avon Rubber p.l.c.
Paul McDonald, Chief Executive Officer
Nick Keveth, Chief Financial Officer 01225 896 300
Weber Shandwick Financial
Nick Oborne 020 7067 0700
Legal Entity Identifier: 213800JM1AN62REBWA71
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR") EU no.596/2014. Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
Note to editors:
Avon Rubber p.l.c. is an innovative technology group
specialising in respiratory protection systems and milking point
solutions through its two businesses, Avon Protection and milkrite
| InterPuls. We design, test and manufacture specialist products
and services to maximise the performance and capabilities of our
customers.
Avon Protection is the recognised global leader in advanced
Chemical, Biological, Radiological and Nuclear (CBRN) respiratory
protection systems for the world's Military, Law Enforcement and
Fire markets.
milkrite | InterPuls is a global leader providing complete
milking point solutions to customers across the world with the aim
of improving every farm it touches.
For further information, please visit our website:
www.avon-rubber.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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