Investing in innovative new products and technologies while expanding its international markets has paid off for Wiltshire manufacturer Avon Rubber, which has reported a 21% leap in annual profits.
Pre-tax profits at the Melksham-headquartered group came in at £16.6m for the year to September 30 despite sales slipping slightly to £124.8m.
The group, which makes advanced rubber-based products including respirators for armed forces and emergency services around the world along with parts for the global dairy industry, enjoyed a strong increase in orders during the year and achieved improved margins.
Avon described Wednesday’s results as “another year of exceptionally strong growth”.
It added: “We have further strengthened our business, improved our margins and through sound operational management provided strong cash generation moving us to a net cash position.
“In addition to the strong financial performance, we end the year with a more robust and sustainable business.”
Its two divisions – Protection & Defence and Dairy – were continuing to generate increased opportunities for growth, it said.
In Protection & Defence it has 11 new product approvals and is growing in all its market sectors. Order intake climbed 26% to £93m with its order book for delivery in 2015 worth £33m, while operating margin on its Protection & Defence products increased from 11.9% to 14.6% during the year.
The Dairy division increased its Milkrite brand’s market share, expanding its product and service offerings and developing its distribution in emerging markets. 
Avon has also invested £2m across the group over the past 18 months to upgrades its IT systems to support its growing global business.
While sales inched down to £124.8m against £124.9m last time, they increased 5% on a constant currency basis as the pound strengthened against the dollar.
Chief executive Peter Slabbert said: “2014 has been an excellent year reflecting the strategic decisions made over the last three years to invest in innovative new products and technologies while expanding our international markets. This strategy will continue to drive growth in the years ahead.”
Looking ahead, the group said: “Our continued investment in product, brand and market development and in our operational capability in 2014 should position us to make further progress in the coming years.”
