Avon Rubber expects its annual pre-tax profits to be at the upper end of current market expectations, the Wiltshire-based manufacturing group said today in a trading update.
The year to September 30 concluded strongly for both its divisions – protection & defence, and dairy – it said, while net debt at year end was £11.9m, lower than current market expectations as a result of the accelerated collection of certain receivables.
The Melksham-based group designs and manufactures a range of technologically-advanced gas masks, respirators and other equipment for the military and security forces worldwide and rubber-based products for the dairy industry.
In protection & defence, the initial delivery order against the three-year US Department of Defence (DoD) contract for filters announced in August 2011 was completed on schedule while higher margin non-DoD sales remained on a positive trend in both the North American homeland security and European, Middle East and Asian markets.
In dairy, progress earlier in the year continued into the final quarter with the group’s new impulse mouthpiece vented liner product making further market share gains.
Chief executive Peter Slabbert said: “We are pleased to see our industry-leading technologies delivering higher-margin returns as we strengthen our position in global markets. The uncertain economic climate will present challenges in the coming year but I am confident that both sides of Avon’s business are well positioned to make further progress in 2012.”
Avon’s preliminary results will be announced on November 23.
