Avon Rubber records massive profit and growth in interim 2014 results

ERJ staff report (TP)

Melksham, UK – Avon Rubber reported massive profit and growth in its interim results for 2014.

Financial highlights of the 28-page report included:

Operating profit growth of 41 percent and profit before tax up 45 percent.

Return on sales (EBITDA divided by revenue) improved 4 percent from 14 percent to 18 percent.

Diluted earnings per share up 53 percent.

137 percent conversion of operating profit to operating cash inflow; debt reduced to £5.5m (€6.7m).

Interim dividend of 1.87p (€2.28) per share up 30 percent reflecting both the excellent current year operating results, confidence in the future and a wish to raise the level of dividend payment relative to earnings progressively over time.

Operational highlights were:

Order intake in Protection & Defence up 15 percent to £46m (€56m). Closing order book of £33m (€40.2m) with £26m (€31.7m) for delivery in H2 2014.

Growth in non-DOD (US Department of Defense) sales from strong opening order book; the second half will benefit from delivery against its largest ever individual US homeland security order.

Cluster exchange service successfully launched in both Europe and North America.

Announced the consolidation of Protection & Defence operations from four US sites into three ahead of the expiry of the lease on the Lawrenceville, GA facility in 2015.

Peter Slabbert, chief executive, said: “Our strategy of diversifying into broader protection and non-US defence markets has resulted in growth. The improvement in the dairy market reported earlier this year has been maintained.

“Together these have produced strong growth in the first half of the year and support the Board’s confidence that the Group can continue to make progress in the second half of the financial year.

“The Board believes that it is building a sound and robust business with good long-term growth potential.”

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More details in 28-page PDF from Avon Rubber