Melksham, UK – Avon Rubber plc has posted unaudited, preliminary results for its fiscal 2017 ended 30 Sept, showing sales up 14.2% year-on-year to £163.2 million (€182.2 million) and adjusted operating profit 23.4% higher at £25.8 million.
The UK maker of products for security & defence applications and the dairy industry reported a closing order book of £34.0 million – up 45.3% on fiscal 2016 – and £26.6 million of orders booked since the end of its financial year.
“We have delivered a strong set of results, growing our order book and progressing medium-term opportunities for future growth,” said CEO Paul McDonald.
Demand for Avon’s law-enforcement and fire-protection products grew strongly, while the company also noted significant opportunities in an expanding military-product market.
In the dairy sector, new technology and service offerings and a more positive trading environment are helping to drive growth in that market, the Avon Rubber boss added.
“There are significant growth opportunities for both businesses and I am confident in our ability to deliver value to our customers, our people and our shareholders in 2018 and beyond,” said McDonald.
Commenting on the figures, Fiona Cincotta, senior market analyst at City Index, said the jump in Avon Rubber's closing order book set the company up to keep growing profits in 2018.
“Fatal acts of terrorism in the US and Europe have buoyed demand for gas masks that shows little signs of waning any time soon,” she commented
“Avon is in the enviable position of being the sole gas-market contractor to the US Department of Defense,” added Cincotta, who went on to suggest that an acquisition "could be on the cards" for the rubber products company.
