Avon Rubber lifts profit and dividend

20th Nov 2013 07:43

- Dividend lifted 20 per cent- Strong Protection & Defence, weaker Dairy- Confident of progress at both divisionsRubber-based products manufacturer Avon Rubber booked a strong set of full year results and expects to make further progress in both its Protection & Defence and Dairy divisions in 2014.The group, which is in the third year of its turnaround plan, underlined its confidence in future trading with a 20% hike in its dividend payment to 4.32p.Adjusted pre-tax profit climbed to £14.0m for the year ended September 30th from £11.0m a year earlier. Revenue for the period increased to £124.9m from £106m. Basic earnings per share (EPS) rose to 32.7p from 26.9p.Earnings before interest, taxation, depreciation, amorisation and exceptional items, (EBITDA) rose to £20.0m from £16.4m the year before. Protection & Defence posted a 25% increase in revenue from £74.6m to £93.2m, helped by rising sales of commercial mask and filters and orders won by AEF, the division's flexible fabrications business. However Dairy revenue fell 1% to £31.7m as it focuses on building its own Milkrite branded products. "Market conditions have also been difficult with farmer margins under pressure from the combination of lower milk prices and higher feed costs," the group explained. Avon said the Dairy business is well positioned in a market with long-term growth potential and improving short-term market conditions. Commenting on the results, Peter Slabbert, Chief Executive added: "Our strategy has delivered exceptionally strong growth in 2013."CJ