Avon Rubber reports positive third quarter

ERJ staff report (RD)

London -- Avon Rubber plc has reported a positive peformance for the first half of 2010, showing improved results for the third quarter of the year (Q3), compared to the same period last year.

In the company's protection and defence business, year-to-date revenue to the end of Q3 was up 20 percent, compared to last year.

“We continue to deliver mask systems on schedule to the US DoD and UK MoD. We are seeing an improved level of activity in the US homeland security markets and have experienced a significant increase in orders from US fire departments since the release of federal grant funding in March leading to a return to profitability for ISI in the third quarter,” Avon said in a 17 Aug interim management statement.

“Strong operating cash generation, seasonal fluctuations in working capital, the investment in additional filter capacity and the US$ exchange rate have combined to result in a decrease in net debt to £13.5 million (Euro 16.4 million) at 30 June 2010 (31 March 2010: £14.4 million). This gives headroom of £9.9 million against facilities of £23.4 million, the statement said.

AEF is performing well and has received a further $5m of orders for military fuel tanks under its long term sole source supply contract, the company said, adding, “We remain on track to deliver growth and improved results for the 2010 financial year.”

Looking forward, Avon said its Protection & Defence unit has made considerable progress towards becoming the market leader in respiratory protection for military and homeland security users, and remains confident that this progress will be sustained.

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Press release from Avon Rubber plc