Avon Rubber sales grow, earnings decline

Melksham, UK – Avon Rubber plc has reported a 4% year-on-year growth in annual sales at £165.5 million (€185 million) for the financial year ended 30 Sept.

Despite the growth in sales, earnings (adjust EBITDA) fell 1.2% to £35.3 million, said the UK rubber group in a presentation 14 Nov.

At constant currency rates, sales grew 8.7% and earnings rose 5.1% compared to the previous year.

Avon noted high revenues from its M50 mask system volumes and spares supplied to the US Department of Defense (DOD), saying its opening order book of £37.8 million provided “excellent visibility” into 2019.

Commenting on the results, Paul McDonald chief executive officer said the company was working with DOD on a number of “potentially significant new platform programmes”.

“We currently expect to enter into multi-year contracts with the DOD for the M69 aircrew mask and the M53A1 mask and powered air system in the new financial year,” he said.

Production for the said items is scheduled to commence in the second half of the fiscal year started 1 Oct.

The company is also in discussions with the DOD to put in place a follow-on contract for the M50 mask system following the conclusion of the initial 10 year contract in July.