Avon Rubber returns to profit in Q1

ERJ staff report (DS)

London -- Avon Rubber plc said it has has returned to profitability (Profit Before Interest and Tax from continuing operations) in the three months to 31 December 2008. The company did not give specific details ahead of its AGM of shareholders scheduled for today at 10:30.

Avon said its protection & defence business, led by the US Cadillac facility producing M50 mask systems for the US Government, developed in line with expectations and is meeting customer delivery schedules. The Dairy business has continued its strong 2008 performance.

In a statement, Avon said, "The strengthening of our two major trading currencies, the Euro and the US Dollar, throughout 2008, is continuing to be of benefit to trading overall, although the strengthening of the US Dollar has increased our reported level of net debt by £3.2m due to the high proportion of US Dollar borrowings. Net debt at 31 December 2008 was £19.2m, (30 September 2008: £15.1m). The Group has banking facilities which run to June 2010, of £22.4m at 31 December 2008 exchange rates."

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Press release from Avon Rubber