Avon Rubber incurs an operating loss in first half.

London - Avon Rubber PLC has released its interim results for the six months ended 31 March 2007, showing that they have incurred an operating loss of £713 000 (€1.04 million) on sales of £37.7 million, up 12 percent on the same period last year.

The company is now focussing on non-automotive goods and revealed that their profits for the period have remained the same at £492 000.

Chief executive Terry Stead said, "The first half of the year has seen the continuation of our transition to a group and dairy markets. We are beginning to see the benefits of our new respiratory production whilst still supplying our legacy respirators from the UK.

Avon, who sold off its automotive sector in 2006, saw its interest costs fall from £1.8 million to just £417 000 as a result.

“The first half of this year has seen a significant improvement over the second half of last year, despite the additional cost of introducing our new products. The Board is confident that, whilst timing remains uncertain, significant growth, particularly in respiratory protection, will be achieved,” said Stead, in the report.

As well as its results, the company was happy to reveal, that it has appointed David Evans as its Non-Executive director.