London – Avon Rubber is tipped to find increased global demand for its products due to heightened concerns about terrorist attacks and increased military interventions around the world.
Terror threat to bolster Avon Rubber shares
The terrorism is driving more orders for the UK group’s gas masks from emergency services and the military, said John Ficenec Questor section editor of The Telegraph newspaper online.
As well as new contracts in the Middle East, the UK shares expert noted that Avon Rubber is the sole supplier of masks to the US defence department.
This, he concluded, make the shares in the Melksham-based rubber products manufacturer “well worth holding on to.”
As reported by ERJ, Avon Rubber posted an 8-percent sales rise £134.3 million (€191.6 million) for its 2015 fiscal year. Operating profit was up 19 percent to £20 million, the results – issued 17 Nov – also showed.
Avon Rubber’s protection & defence operation accounted for 74 percent of group revenues.
The gains were driven in particular by an order for respirators from a customer in the Middle East, and strong trading in the North American law enforcement market.
The company went on to say that it expected to see more orders in 2016 from “a number of high-value Middle Eastern opportunities.”