Acquisitions, innovation and the weak pound boosted specialist Wiltshire manufacturer Avon Rubber in the year to September 30, with bosses saying it ended the period a more robust business than when it started.
The Melksham-based group, which makes gas masks and respirators for the military and emergency services and rubber products for the global dairy industry, increased annual sales by 6% to £142.9m. 
Revenue in its Protection & Defence business, accounting for around three quarters of group sales, were 2% higher at £100.9m while Dairy revenue was up 18% to £42m.
Group pre-tax profits slipped by 5.8% to £16.8m before adjustments. However, strong earnings growth and cash generation resulted in it ending the year with net cash of £2m.
With the majority of the group’s earnings in dollars, it had also benefited from Sterling’s recent weakness against the currency.
Avon Rubber said during the year it had successfully integrated acquisitions made late in 2015 and early 2016 and, in difficult market conditions, both sides of its business had proved resilient.
“We continue to maintain our focus on creating a healthy and sustainable business and, by investing in and integrating technology in both divisions, we are creating exciting future international growth opportunities,” it said.
Prior-year acquisitions that have now been integrated included Italian specialist milking products form InterPuls, which it bought for €29.75m (£20.7m), and added hi-tech products sold under the Milkrite-InterPuls brand, and US specialist electronics firm Hudstar Systems for $5.1m (£3.2m).
Hudstar designs and makes electronic control systems used in powered and supplied air respiratory protection systems – including Avon’s Deltair product.
In October 2015 it acquired the Argus thermal imaging camera business from e2v technologies for £3.3m. The thermal imaging product is complementary to Avon’s offering in both the fire service and law enforcement markets and has been successfully integrated into its sales and distribution structure with good demand for the products.
Operational highlights during the year included a $9m order for its recently approved CBRN/CO Escape Hood, an increase in market share growth of its Impulse Air dairy system to 29% in the US and 6% in Europe in a soft dairy market, and continued strong take up of innovative Cluster Exchange service which is now servicing 467,000 cows on 1,530 farms across US and Europe.
Chief executive officer Rob Rennie said: “Avon’s strategy has delivered strong earnings growth and cash generation. Our business has proved to be resilient in difficult market conditions and we exit the year a more robust business with a range of good opportunities for growth.”
The group said its strategy of integrating new technologies from product development and acquisitions with its existing strong brands and routes to market had created a business that was resilient to adverse market conditions with strong foundations for growth in both divisions.
Its Protection & Defence business continued to see higher margin export opportunities and had good visibility of US Department of Defence revenues for next year, while in Dairy, after weak market conditions this year, the acquisition of InterPuls and the encouraging gains in market share gave it significant opportunity to increase milk prices next year.
