Melksham , UK – Avon Rubber continues to be buoyed by sales of respiratory protection masks but is experiencing a slowdown in the dairy sector, the group said 26 Jan trading update.
Dairy market conditions “remained soft in the first quarter of the financial year,” Avon said in a review of the three months to 31 Dec 2015
According to Avon, falling prices for milk have impacted general market conditions for dairy farmers, particularly in Europe.
“This typically cyclical market dynamic has, as expected, reduced demand for our consumable products as farmers extend the life through over using product,” the rubber-based systems maker stated.
In protection & defence, Avon said is remained focused on fulfilling deliveries of its JSGPM M50 mask system to the US defence department under a 10-year sole-source contract.
The Melksham-based group is also hopeful of extending its position in the protection & defence market.
“We continue to see a number of higher margin export opportunities although, as always, the timing of order receipt remains unpredictable. We are currently planning for one of these to be received and fulfilled in the first half of this financial year,” said Avon.
The capital nature of the InterPuls product makes the replacement cycle longer. The take up by farms of the innovative Cluster Exchange service remains at encouraging levels in both North America and Europe.
Recently appointed CEO Rob Rennie commented: “I am delighted to have joined Avon at this exciting time in its development and see good opportunities for growth across both Protection & Defence and Dairy.”
Avon’s interim results for the six months ended 31 March 2016 will be announced on 4 May.