Avon Rubber issues confident outlook

Avon Rubber lifted full year profit and underlined its confidence in future trading by increasing its dividend payment 20 per cent.

Avon Rubber lifted full year profit and underlined its confidence in future trading by increasing its dividend payment 20 per cent.

The group, which makes high tech rubber-based respiratory protection to military, emergency and industrial markets, said pre-tax profit rose to £11m for the year ended September 30th 2012 from £10.2m the year before. Revenue slipped to £106.6m from £107.6m previously.

Revenue at protection and defence, which represents 70% of group revenues, fell 4% to £74.6m after lower filter sales to the US Department of Defence. Revenue at its dairy division increased 6% to £32.1m

Chief Executive Peter Slabbert commented: "We have continued our successful track record of growing profits, generating cash and reducing our debt and believe that our investment in industry leading technologies in both protection and defence and dairy will deliver future revenue growth and higher margins."

Order intake in protection and defence soared 42% to £85.2m and the closing order book stood at £45.7m with £40.7m for delivery in 2013.

Avon Rubber, which opened a sales and distribution centre in China, said earnings per share rose to 26.9p during the period from 25.2p before.

Operating margins improved 0.6% to 10.9% while cash generated from operating activities of £14.7m, representing 127% of operating profit.

Net debt reduced by £3.1m to £8.7m while the dividend has been increased to 3.6p from 3p per share the year before.

CJ

Recommended

Three stocks to provide income and growth in good times and bad
Share tips

Three stocks to provide income and growth in good times and bad

Professional investor Matthew Page of the Guinness Global Innovators fund picks three resilient stocks that should pay predictable dividends that grow…
5 Aug 2022
Share tips of the week – 5 August
Share tips

Share tips of the week – 5 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
5 Aug 2022
Invest in defence stocks as war goes hi-tech
Share tips

Invest in defence stocks as war goes hi-tech

The operational efficiency of defence equipment and cybersecurity is developing rapidly owing to the war in Ukraine, says Jonathan Compton. Here’s wha…
4 Aug 2022
Enjoy the bear market rally while it lasts
Stockmarkets

Enjoy the bear market rally while it lasts

Investors seem to think that a weaker US economy will cool inflation and see the Fed relent on interest rate rises. But that optimism may be misplaced…
3 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
What is stagflation and what can be done about it?
UK Economy

What is stagflation and what can be done about it?

The threat of 1970s-style stagflation has returned, here’s what you need to know.
4 Aug 2022
Share tips of the week – 5 August
Share tips

Share tips of the week – 5 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
5 Aug 2022