ERJ staff report (TP)
Melksham, UK – Avon Rubber said as a result of strong trading they expect their half year result to be substantially better than in 2013 and believe the Group’s full year adjusted operating profit* will be towards the upper end of current market expectations.
There was “strong” first half trading in its Protection & Defence business reflecting the strategy of increasing levels of higher margin non-DoD (US Department of Defense) sales.
Peter Slabbert, Chief Executive, said: “The first half of 2014 has been another period of excellent progress for Avon. Both divisions have performed well, leaving the Group well positioned to deliver for the remainder of 2014 and beyond.”
Avon said in its press release: “The mix of sales in the second half of the financial year is likely to be more in favour of lower margin DoD sales as we fulfill the 85,000 mask systems order received in the second quarter and further US government budgets are released. We therefore expect some first half bias to the results of this business for the year as a whole.
“We have completed shipment of export orders brought forward into this financial year and trading in the second half of the year will benefit from delivery against our largest ever individual US Homeland Security order (£4m / €4.83m) which was received in the second quarter, the positive order intake from the South American market and sales of our new Deltair fire SCBA, which has now passed all the tests required for regulatory approval.”
The Group has seen strong conversion of profits into cash and Avon expects half year net debt to be significantly lower than the £10.9m (€13.2m) reported at the previous year end.
The half year results will be announced on Wednesday 30 April 2014.
* Note: adjusted operating profit excludes the amortisation of acquired intangibles, IAS19(R) pension charges and exceptional items.
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Press release from Avon Rubber