Avon Rubber sold auto unit for around €77 million

Melksham, Wiltshire - Avon Rubber says it has now completed a substantial restructuring of its business. The company has sold its automotive activities - which generated almost two-thirds of group revenues, but made an operating loss on the continuing activities. Avon did not say how much it sold the automotive unit for, but reported a one-off cash gain from the sale of subsidiaries of £52 million (€77 million).

Avon said it is now concentrating on respiratory protection, dairy, aerosol gaskets and

engineered fabrications. The company said it was affected by a delay on closing the Automotive deal to a management team, and this affected overall revenues.

While figures are misleading in the light of such huge restructuring, Avon reported sales of £230.8 million for the 12 months to 30 Sept, 2006 compared with 239.7 million in the previous year. In terms of continuing operations, the group said it recorded revenues of £65 million compared with £46.9 million a year earlier. None of the businesses made significant profits or losses, reaching approximately break-even on the 12-months.

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