Avon Rubber buoyed by defence orders

18th Aug 2011 07:56

Wiltshire based rubber products provider Avon Rubber said robust trading has continued, putting the company on track for an improved full year performance.The maker of respirators and filters used by military in the UK and US said strong demand for its defence-related products has continued.Last week the group announced an order worth a potential $38m from the US government for its gas mask filters. Its protection & defence business remains on track to deliver improved results for the 2011 financial year and year on year growth in orders from higher margin military and homeland security markets, Avon said.Elsewhere demand for dairy equipment products, which includes parts for milking, has been strong while input costs have remained volatile."We have been able to pass these costs through to customers. Our margin enhancing IPMV vented liner continues to gain an impressive market share in the US," the group said.Avon said it expects the positive performance in its dairy division achieved so far to continue.Avon said, "We have successfully met the challenges of a continuing period of instability in the global defence market, benefiting from our long term sole source contract with the DoD and the growing demand for consumable filters, together with our expanding range of products, which are becoming the respiratory protection equipment of choice.""Reduced volumes in certain markets have been more than offset by a better sales mix and improved efficiencies." Group net debt was £14.4m at 30 June 30 2011.CJ