Avon Rubber, headquartered in Wiltshire (UK) has posted solid results for the year ended 30 September 2017. The company reported a rise in revenue and profitability thanks to strong growth across its operations, with turnover reaching £163.2m, up from £142.9m in 2015/2016.
Orders, revenue and adjusted operating profit increased by 11.8%, 4.5% and 16.1% respectively. The company’s continued focus on profitable growth resulted in an adjusted EBITDA margin increasing to 22.1% compared to 20.9% in 2016.
"We have delivered a strong set of results, growing our order book and progressing medium-term opportunities for future growth,” said Paul McDonald, CEO Avon Rubber.
Avon Rubber is specialised in two core markets, protection & defence and dairy and operate under the names Avon Protection Systems and Dairy Solutions. The former develops advanced chemical, biological, radiological and nuclear (CBRN) respiratory protection systems for the military, law enforcement and fire services; the latter is focussed on the development and manufacture of complete milking point solutions, with products marketed under the brand name milkrite | InterPuls.
Both businesses delivered an excellent financial performance, providing what Paul MacDonald called “a very positive growth outlook” in the coming years.
'There are significant growth opportunities for both businesses and I am confident in our ability to deliver value to our customers, our people and our shareholders in 2018 and beyond,' he said.
Fiona Cincotta, a senior market analyst at City Index, a UK spread-betting, CFD and forex broker, would agree. Referring to the company’s “stellar results”, she commented that
“fatal acts of terrorism in the US and Europe may be unsettling for global markets - but they have buoyed demand for gas masks that shows little signs of waning anytime soon. A 45% jump in Avon's closing order book is a key highlight of this result because it sets the company up to keep growing profits handsomely this year.”
She noted that Avon was in the “enviable position” of being the sole gas-market contractor to the U.S. Department of Defense. “With a cash balance of £24.7m and available bank facilities of £29.9m, an acquisition could well be on the cards, even after a 30% hike in the dividend,” she said.