Wiltshire manufacturer Avon Rubber reported a double helping of good news today – a 6% rise in first-half profits and its largest ever single non-US Department of Defence order, worth £14.7m.
The Melksham group is a world leader in the design, test and manufacture of advanced chemical, biological, radiological and nuclear (CBRN) respiratory protection.
It also owns a major dairy business manufacturing liners and tubing used by farmers in automated milking.
Pre-tax profits in the half year to March 31 rose from £4.4m to £4.6m on revenue up £1m at £49.6m. Earnings per share rose 5% while there is a 20% rise in the interim dividend to 1.2p. Operational highlights include continued growth in non-US Department of Defence (DoD) orders, including todays £14.7m order for respiratory protection products from an unnamed Middle East customer for delivery in 2013 and 2014.
Avon chief executive Peter Slabbert said: “The receipt of this order clearly demonstrates the confidence our customers have in our world-leading respiratory protection products and gives us momentum for 2013.”
He added that the protection and defence business would continue to benefit from the security of a long term contract with the US DoD and increased market share in the US homeland security and foreign military markets. In the short term, however, visibility and timing of filter orders from the DoD and foreign military orders remains limited.
The company is accelerating investment in new products and technologies which will support an expanded product range. It also expects to continue to deliver further operational efficiencies, said Mr Slabbert.
He continued: “In dairy we remain well positioned in a market with long-term growth potential. The market is stable, our cost base is appropriate and we have opportunities to further enhance profitability through our strong Milk-Rite brand, our distribution capability and by developing further innovative new products.
“We are delivering our strategy. The board remains confident that the group can continue to progress and, as last year, expects stronger revenues in the second half.”
By late morning the shares were up 3.6% or 10.25p at 293p.
