Avon Rubber reports sales, earnings up for 12 months

ERJ staff report (DS)

London -- Avon Rubber PLC said sales and profits for the 12 months to 30 September 2010 were stronger than in the previous year.

Revenues increased to £117.6 million (euro 139 million) from £100.9 million, while operating profit increased to £9.3 million, compared to £5.3 million a year ago. The company reduced net debt by £1 million and reinstated its dividends,

Commenting on the results, Peter Slabbert, Chief Executive said, "This year has built on the turnaround achieved in 2009. Our strategy of remaining focused on both our rapidly growing Protection & Defence business and our more mature but high margin and cash generative Dairy business has proved successful. We expect the progress made in 2010 to continue and for operating margins to improve. Further penetration of our current and new markets and the introduction of new products will lay the foundation for additional growth."

Out of the total revenues of £117.6 million, Avon's Protection & Defence business contributed £90.2m. The Dairy business saw revenues of £27.4m

The company said operating margins are expected to improve further. Lower interest costs should also have a positive effect on earnings.

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Press release from Avon Rubber