Manufacturing group Avon Rubber is predicting a strong performance next year as its two recent acquisitions and a number of new orders boost earnings.
In an update to shareholders, the Melksham-headquartered group – a world leader in products for the protection & defence and dairy industries – said it expects trading in its current year ending this month to be in line with expectations.
But June’s $5.1m (£3.2m) acquisition of US firm Hudstar Systems, which designs and makes electronic control systems used in powered and supplied air respiratory protection systems, and last month’s €29.75m (£20.7m) deal to buy InterPuls, an Italian firm making specialist milking products, will benefit next year’s earnings. 
It also said a number of high-value opportunities in the protection & defence market were in the pipeline and it now expected to see the benefit of these orders next year.
Avon is the recognised as a global market leader in making advanced chemical, biological, radiological and nuclear (CBRN) respiratory protection systems which are used extensively in the military, homeland security, first responder, fire and industrial markets.
Deliveries of its mask systems to the US Department of Defence (DOD) remained at a similar level to the first half of the year. A development programme with the US Air Force for a new mask was progressing well, it said, and Avon had been awarded additional funding to support the next 12 months of testing with a production contract expected to follow.
Trading in its dairy business, which makes liners and tubing used in milking, had remained strong this year, Avon said in its statement, and take-up by farms of its innovative Cluster Exchange service was at “encouraging levels” in North America and Europe.
Avon reported a 4% rise in adjusted pre-tax profits to £8.4m on revenue up 2% to £62.8m in the six months to March 31.
