1 Dec 2005
London -- Avon Rubber PLC said it had a challenging year as it announced its results for the 12 months to September, 2005. The company's turnover was unchanged, at £239.7 million, while the company turned a 2004 pre-tax profit of £8.7 million into a pre-tax loss of £2.8 milllion, as a result of exceptional charges. These related to restructuring of its European Automotive operations including the factory closure of Calaf, Spain and the reorganisation of the Group's central and divisional management structures.
The company also wrote off £1.8 million in bad debts following the demise of the MG Rover car-making operations, announced in April 2005 and the Chapter 11 filing of Delphi Corp. in October.
In the automotive segment, sales increased by 5.5 percent, to £185 million, while operating profit more than doubled, to £6.2 million. Restructuring costs, however, eliminated all this profit.
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