ERJ staff report (DS)
London -- Avon Rubber PLC has reported steady growth in revenues and profits for the six months to 31 March 2012. Revenues were up to Â£49.6 million (euro 61.1 million) from Â£48 million a year earlier, while operating profit grew to Â£4.6 million from Â£4.4 million a year ago.
Peter Slabbert, Chief Executive commented:
â€œThe Protection & Defence business will continue to benefit from the security of the long term DoD contract and increased market share in the US homeland security and foreign
military markets. In Dairy we remain well positioned in a market with long term growth potential. The market
is stable, our cost base is appropriate and we have opportunities to further enhance
profitability through our strong Milk-Rite brand, our distribution capability and by
developing further innovative new products.
We are delivering our strategy. The Board remains confident that the Group can continue to
progress and, as last year, expects stronger revenues in the second half.â€
Revenue for the Protection and Defence division was Â£33.2m (2011: Â£32.7m).
Sales of the M50 military respirator were in line with forecast in the first half of the year, up
30 percent on 2011, with deliveries of approximately half of the 2012 committed order book of
192,000 mask systems. Slabbert added, â€œThe first half of 2011 saw significant sales to Saudi Arabia, Kuwait, France and our first
foreign military sale through the US DoD. That level of 'impact' sales has not been repeated so far in 2012â€
Revenues for the Dairy business were up 7 percent at Â£16.4m (2011: Â£15.4m) which generated an
operating profit of Â£2.9m (2011: Â£2.5m). EBITDA was Â£3.2m (2011: Â£2.7m), giving a return
on sales of 19.2 percent, up from 17.6 percent in 2011.
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Interim report from Avon Rubber