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avon rubber chart outlook? (AVON)     

WOODIE - 16 May 2003 09:49

I NEED A CHART VIEW ON AVON RUBBER SINCE SHARES TIPPED THE STOCK IT HAS GONE SIDEWAYS VIEWS APPERICATED CHEERS

petob - 31 Jan 2005 11:43 - 2 of 78

Woodie,

I would give you a chart view if you could explain how!http://pet_ob@latinmail.com

Guscavalier - 09 Mar 2007 15:16 - 3 of 78

Investors have had to be patient with this one over the last few years but, after the sale of its automotive side management can now concentrate on the more lucrative security masks and argicultural component interests. Prudential have announced a 4.5% interest which could prove timely.

Guscavalier - 17 May 2007 16:37 - 4 of 78

Avon Rubber PLC
17 May 2007

Strictly embargoed until 07:00 17 May 2007


AVON RUBBER p.l.c.


UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2007


31 March 31 March
2007 2006
Millions Millions
_________ _________
CONTINUING OPERATIONS:

REVENUE 37.7 33.8

OPERATING (LOSS)/PROFIT (0.7) 0.5

PROFIT FOR THE PERIOD 0.1 0.1

(LOSS)/EARNINGS PER SHARE:

Basic (0.5)p (58.3)p

Continuing operations (0.5)p 0.1p

DIVIDENDS PER SHARE 3.7p 3.7p



O Group returns to profit following loss of 5.9million in 6 months to 30
September 2006

O Dividend maintained

O First major orders for new US military respirator delivered and follow on
orders received

O Operational performance improving

O Strong performance from Dairy and Engineered Fabrications

O Board restructured to reflect new Group focus



Commenting on the results, Terry Stead, Chief Executive said:

'The first half of the year has seen the continuation of our transition to a
group focused on protection and defence and dairy markets. We are beginning to
see the benefits of our new respiratory protection products moving into
production whilst still supplying our legacy respirators from the UK.

Our dairy business in North America continues to perform well and the European
dairy operation has improved considerably, while Engineered Fabrications continues to
grow profitably. The North American respiratory protection facility in Cadillac,
Michigan has become fully operational. Some additional costs were incurred in
the first quarter in achieving this, but we have seen an improving operational
performance in the second quarter and expect the improvement to continue as
volumes increase. In the UK we are operating with a higher than acceptable cost
base which management will continue to address.

The first half of this year has seen a significant improvement over the second
half of last year despite the additional cost of introducing our new products.
The Board is confident that, whilst timing remains uncertain, significant growth,
particularly in respiratory protection, will be achieved.'



For further enquiries, please contact:


Avon Rubber p.l.c

Terry Stead, Chief Executive 020 7067 0700
Peter Slabbert, Group Finance Director (until 1.00 p.m.)

(Local/Trade Press)
Fiona Stewart 01225 896871

Weber Shandwick Financial
Richard Hews 020 7067 0700
Rachel Taylor
Hannah Marwood

An analyst meeting will be held at 9.30 a.m. at the offices of Weber Shandwick
Financial, Fox Court, 14 Gray's Inn Road, WC1X 8WS


NOTES TO EDITORS: Avon Rubber p.l.c. is an international polymer engineering
group adding value through material, manufacturing and industry sector
expertise. The Group is currently capitalised at approximately 50million.





AVON RUBBER p.l.c.



UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 MARCH 2007


INTRODUCTION


Following our major strategic restructuring which has repositioned the Group in
our chosen markets of respiratory protection, dairy and engineered fabrications,
the half year to 31 March 2007 has seen the Group make significant progress
towards our strategic objectives.

We successfully completed the important milestone of the delivery of the first
Low Rate Initial Production (LRIP) order for the new generation M50 military
respirators for the US Department of Defense (DoD) and received further follow
on orders from this customer. We achieved NIOSH certification for the non
military C50 version of this product to complement the existing European CE
certification and have started to receive orders for this mask. Operationally we
made significant improvements in the transition to volume production of both
respirators and filters in our Cadillac facility during this period,
particularly in the second quarter. Our UK facility at Hampton Park West also
showed improvement, benefiting from the cost reductions made in the previous
financial year. Despite these reductions our overall UK cost base remains too
high and management will continue to address this. In addition, we continue to
be impacted negatively by the depressed fire protection market in the USA and by
the inherent uncertainty in the timing of sales to military and other
governmental organisations.

This overall progress is reflected in our return to profit for the period of
138,000 (2006: 147,000) following the loss from continuing businesses of
5,872,000 in the second half of last year.


RESULTS

Revenue increased by 3,983,000 (12%) to 37,749,000 from 33,766,000 in the six
months to 31 March 2006 but by 21% from the second half of the 2006 financial
year. We incurred an operating loss of 713,000 (2006: 492,000 profit) in the
period which again was a significant improvement from the 2,953,000 loss
(including 464,000 of reorganisation costs) in the second half of the 2006
financial year.

Net interest costs fell from 1,801,000 in 2006 to 417,000 reflecting the
reduced debt following the disposal of Automotive in August 2006. The finance
credit arising from the accounting for pensions remained largely unchanged at
1,251,000 (2006: 1,260,000). This resulted in a profit before tax of 121,000
(2006: 49,000 loss) and a profit after tax of 138,000 (2006: 147,000).

The loss per share on continuing operations was 0.5p (2006: 0.1p earnings).

Net debt increased from 1.1million at the 2006 year end to 10.0million at 31
March 2007. Cash outflows in the first half held over from the sale of the
Automotive business, the sale of our UK property and restructuring charges, all
reflected in the 2006 report and accounts, amounted to 3.4million. We invested
a further 3.4million (2006: 5.1million) in fixed assets mainly in the Cadillac
facility and the development of our filter and respiratory protection product
range. Whilst we will continue to invest in order to access further markets with
a more comprehensive product range, we expect the rate of capital spend to
reduce going forward. Working capital increased due to both the increased level
of business compared to the second half of last year and seasonal factors.

Following the disposal of Automotive in 2006, the Group has amended the primary
segmental analysis to reflect the remaining business sectors of Protection and
Defence, Dairy and Other Engineered Products.


Protection and Defence

The Protection and Defence segment includes our respiratory protection
businesses in the US and UK and our US based fabrications operation. Revenue of
19,327,000 (2006: 18,045,000) grew by 7.1% from the corresponding period last
year and by 34.3% from the preceding six months. A loss of 794,000 (2006:
943,000 profit) was incurred.

Revenue growth came primarily from the new Cadillac facility which supplied the
initial LRIP order of M50 military respirators and further follow on orders from
the DoD for the M53 derivative. Significant resources were applied in the first
quarter to ensure the success of this first stage of what we believe will be a
long term revenue stream. We did, however, make rapid progress during the second
quarter towards achieving targeted manufacturing process efficiencies and we
enter the second half year with a significantly improved capability and cost
base. Our UK operation continued to trade profitably despite a slower than
expected take up by the UK government of the newly introduced rapid escape hood.
These shortfalls were offset by continuing demand, particularly from the MOD for
our existing products. Challenging market conditions remained for ISI supplying
the fire services market in the US with delays in the release of Federal grants
throughout the 2006 calendar year. In addition the proposed introduction of new
regulatory standards in September 2007 has led to delays in procurement
decisions. We expect to see some benefits later in the calendar year as grant
funds are spent but the extent to which this will benefit the current financial
year is unclear.

Demand from the US military for our fuel and water storage tanks has increased,
resulting in further progress being achieved at our Mississippi based
fabrications business. We are optimistic that this trend will continue and that
profitable long term revenue streams will be secured from these products.


Dairy

Our dairy business remains stable and consistent. Revenue was largely unchanged
at 9,670,000 (2006: 9,579,000) with the negative effect of the weaker US
dollar on sales from our US business offsetting revenue growth in the European
operation. Operating profit increased from 893,000 in 2006 to 1,281,000 with
the revenue growth in Europe coming primarily from our higher margin own brand
Milk-Rite products. This business also benefited from the lower cost base in our
Hampton Park West facility following the restructuring last year.


Other Engineered Products

This segment includes our aerosol gasket business, the remaining business
machines products and our mixing operation. Revenue increased to 8,752,000
(2006: 6,142,000) with increased sales of mixed rubber to Automotive now being
recorded as external revenue. The significantly weaker US dollar prevented our
achieving planned growth in sales of aerosol gaskets although opportunities
remain in that market. The losses incurred in these businesses reduced to
1,200,000 (2006: 1,344,000) due to cost reductions. We remain committed to
finding solutions to eliminate these losses.


Dividends

The Board announces an unchanged interim dividend of 3.7p per share payable on 9
July 2007 to holders of ordinary shares on the register at the close of business
on 8 June 2007. The Board recognises that the dividend remains uncovered by
current earnings but continues to believe that progress in current trading and
opportunities available to the Group will lead to the restoration of cover in
due course.


Pensions

The financial position of our retirement benefit obligations as measured under
IAS 19 (International Accounting Standard 19 Employee Benefits) has improved
during the period with the deficit reducing to 7.7million from 14.6million at
September 2006. This gain is a combination of updated asset values and, more
importantly an increase in the discount rate applied to the UK pension
obligations from 5.0% to 5.4%, in line with market movements. The triennial
valuation of this fund effective 1 April 2006 has also been finalised and it is
pleasing to report that improved asset returns together with the effects of
recent actions has led to a fund surplus of 2.4million (2003 valuation
45.4million deficit) despite more prudent mortality assumptions. The Group will
continue to work closely with the Trustees of the fund to manage this risk.


BOARD CHANGES

As the Group makes its transition to be focused on the protection and defence
and dairy markets, the Board has felt the need to alter its composition to
reflect these changes. In particular we have sought independent directors with
experience of operating in defence and related markets.

In January Sir Richard Needham was appointed as Chairman. Sir Richard was
Northern Ireland Economy Minister for seven years and UK Minister for Trade for
a further three years. He was International Director for GEC-Marconi for two
years and a Non-Executive Director with Meggitt plc for five years. His
experience is proving invaluable in supporting the changing Group.

We are now delighted to announce a further significant addition to the Board
with the appointment of David Evans as a Non-Executive Director with effect from
1 June 2007. David is a Non-Executive Director of Chemring Group PLC, having
previously been their Chief Executive during a period of significant growth.
Earlier in his career he spent seventeen years with GEC-Marconi in the defence
industry and has been a member of the Executive Committee of the Defence
Manufacturers' Association for the last nine years.


OUTLOOK

The first half of the year has seen the continuation of our transition to a
group focused on protection and defence and dairy markets. We are beginning to
see the benefits of our new respiratory protection products moving into
production whilst still supplying our legacy respirators from the UK.

Our dairy business in North America continues to perform well and the European
dairy operation has improved considerably, while Engineered Fabrications
continues to grow profitably. The North American respiratory protection facility
in Cadillac, Michigan has become fully operational. Some additional costs were
incurred in the first quarter in achieving this, but we have seen an improving
operational performance in the second quarter and expect the improvement to
continue as volumes increase. In the UK we are operating with a higher than
acceptable cost base which management will continue to address.

The first half of this year has seen a significant improvement over the second
half of last year despite the additional cost of introducing our new products.
The Board is confident that, whilst timing remains uncertain, significant
growth, particularly in respiratory protection, will be achieved.



Guscavalier - 17 May 2007 16:41 - 5 of 78

sp up 6p to 184p following interim results anouncement.

WOODIE - 17 May 2007 18:37 - 6 of 78

gus been watching for the last year when the turnaround will come looks like it will be soon.

Guscavalier - 17 May 2007 20:45 - 7 of 78

One lives in hope Woodie. The Board seems to be making the right moves but, events occur that seem to delay things. The latest being the U.S. government order delay on the new masks. However, with a modestly sized Capitalisation compared to the potential future sales of the new advanced masks both to goverments and commercially, the sp could show a marked improvement. Meanwhile a Gross yield of 4.5% is useful. I purchased these around the 170p level as a recovery situation.

Guscavalier - 14 Jun 2007 20:34 - 8 of 78

Avon Rubber PLC
13 June 2007


For Immediate Release 13 June 2007

Avon Rubber p.l.c. ('Avon' or the 'Company')

Employee Share Ownership Trust

Avon Rubber p.l.c. (the 'Company') announces that, the Company has recommended
to Towers Perrin Share Plan Services (Guernsey) Limited (the 'Trustee'), the
Trustee of the Company's Employee Share Ownership Trust (the 'ESOT'), that it
revise the current hedging arrangements in respect of the Company's Performance
Share Plan 2002 (the 'Plan'). The ESOT currently holds 666,190 shares in the
Company which are being held to hedge potential awards under the Plan. Given the
likely vesting profile of these awards the Company has recommended that the
Trustee consider disposing of up to 666,190 ordinary shares of 1 each in the
Company, at such time as the Trustee sees fit.

The original purchase of the shares held by the Trustee was funded by payments
from the Company to the Trustee made for the purposes of establishing the
hedging arrangement relating to the ESOT. To ensure that there is no prejudice
to the beneficiaries of the ESOT, the Trustee will apply the proceeds of any
disposal to subscribe for up to 666,191 new ordinary shares of 1 each in the
Company.

Once the disposal by the Trustee has taken place a formal application for the
listing of up to 666,191 ordinary shares of 1 each in the Company will be made
to the UK Listing Authority and the London Stock Exchange. The shares are being
allotted to trade on the London Stock Exchange and to be admitted to the
Official List upon allotment and will be held by the Trustee in order to satisfy
awards under the Plan.

The total number of ordinary shares subject to awards currently outstanding
under the Plan is 812,765 (representing 2.87% of the Company's issued share
capital).

Guscavalier comment: T/over today 676,000 shs. Maybe some or all of the Trustees' holding included in this figure. Presumably, this will in effect raise additional cash for the Company if new shares are to be issued.

Guscavalier - 18 Jun 2007 20:46 - 9 of 78

Gartmore Investments have announced an increase in its holding from 1,775,000 to 3,241,926 shares representing 11.439%. All the shares are held for various Gartmore named funds, except for 54,550 shares beneficially owned by Strathclyde Pension Fund, managed by Gartmore. This represents some solid support. sp 184p.

Guscavalier - 02 Aug 2007 10:01 - 10 of 78

I decided to exit these for now at 168p. The lack of progress re US Gov mask orders and the probable further weakness of the us$ to my mind may put the dividend at risk. I shall be keeping an eye on these though as they may offer a better opportunity at a lower level. Politics in the US may well be the stumbling block to orders at present. sp 167p.

HARRYCAT - 07 Dec 2007 16:53 - 11 of 78

Looks like the Gas mask contract is a done deal.
Deal value about 1.2b with a 10% profit margin.

WOODIE - 07 Dec 2007 18:24 - 12 of 78

harry are you in this?

HARRYCAT - 07 Dec 2007 22:25 - 13 of 78

No, but am seriously considering it.
This has gone nowhere for quite a while, though divi is good, but with this new contract potential profits are looking encouraging. A number of things could go wrong & I am sure there are penalty clauses if deliveries are not made on time, but it looks to be a solid medium term investment.
It's on my watch list & once the Fed interest rate announcement is out of the way, I will try & free up some cash.

WOODIE - 23 Jan 2008 12:41 - 14 of 78

Avon Rubber PLC
23 January 2008

Embargoed for 10.30 a.m. 23 January 2008

Avon Rubber p.l.c.
('the Group')

AGM Statement

At the Annual General Meeting to be held today the Chairman, The Rt. Hon. Sir
Richard Needham, will make the following statement to shareholders:

'At the time of our preliminary statement at the end of November 2007, we said
that the Group had reached a number of significant milestones. We had announced
that the full rate production decision had been made on our new military
respirator and that we had received NFPA certification for our new
self-contained breathing apparatus product, manufactured at ISI in Georgia.

The growth in our Protection and Defence business has been slower than we
anticipated. However, we are now agreeing the detail of the multi-year contract
for the new military respirator, which will commence with an annual rate of
100,000 units, and expect this order to be confirmed in the very near future. We
anticipate that this will quickly be followed by a requirements order to cover
additional demand for the US military.

We have also received a funded development contract from the US Department of
Homeland Security for the new EH15 emergency hood which we believe has
significant long-term potential.

At Avon-ISI, whilst enquiries have remained at a high level, the conversion of
these to firm orders is taking longer than we anticipated. We are confident that
this is a timing issue and would expect to see growth at this business in the
second quarter continuing into the second half of the year.

Sales of our dairy products in North America continue at a consistently high
level. We expect this to remain the case and we have also seen a continuation of
the growth in sales in our European operations.

Avon Engineered Fabrications is in the process of confirming some long-term
contracts for supply of fluid storage tanks and we believe this will give a
strong base for growth in this business over the next few years.

Overall the Group performance in our first quarter of the financial year has
been below expectations. Net debt increased by 2.3million to 12.7million at 31
December 2007, with increased inventory relating to the delayed deliveries to
the DoD and a seasonal reduction in payables.

We also said in November that we were committed to the sale of our UK Mixing
facility at the earliest opportunity or, if a solution could not be reached, we
would close it. In the absence of any sale of this operation being concluded, we
are now starting the process of closure.

Whilst the growth in our respiratory protection business has been delayed in the
first quarter, the levels of enquiries and expected orders give us confidence
that in the next few months we will see the expected enhanced performance for
the Group. The Board remains confident that the work already carried out,
together with continued investment in new product development, will lead to a
period of sustainable and profitable growth for the Group.'

-Ends

Guscavalier - 23 Jan 2008 18:00 - 15 of 78

Yet more delay with orders, without which, the market must start worrying about dividend maintenance. No doubt the Company has good products but, probably remains too reliant short term on the US government order position. However, at these levels, they could well attract a preditor with more financial muscle.

WOODIE - 23 Jan 2008 19:55 - 16 of 78

seems delay after delay would be surprised if the divi is kept at these levels still on my watch list

Guscavalier - 08 Feb 2008 15:31 - 17 of 78

08 February 2008

Strictly embargoed until 07:00 8 February 2008

AVON RUBBER p.l.c.
( 'the Group' or 'the Company')

Sale of Aerosol Gasket business ('the business')

The Board of Avon Rubber p.l.c. today announces that it has exchanged contracts
for the sale of its Aerosol Gasket business to Crosslinks Limited, based in
South Wales and Corsham, Wiltshire, for a consideration of 1.75 million
payable in cash on completion of the sale.

The business, currently located in Avon's Wiltshire facility, manufactures and
supplies cupseals and stem gaskets for a global customer base. It currently
employs approximately 68 staff and incurred an operating loss of 0.1 million
(before an allocation of 1.1 million of shared service costs from our UK
manufacturing facility) on a turnover of 4.7 million, in the financial year to
30 September 2007. The gross assets of the disposed business were 3.2 million
and the net assets 2.1 million as at that date.

Completion is expected to be in early March 2008 and the proceeds will be
utilised to reduce current borrowings.

Commenting on the sale, Terry Stead, Chief Executive of Avon Rubber p.l.c. said:
'The sale is a further step in the rationalisation of the Group. It allows the
Company and its management to add focus and time on the Protection and Defence
and Dairy businesses which are the cornerstones of the Group's future.'

Guscavalier comment: sp currently around 104p having fallen significantly recently and should reflect some doubt that the dividend will be maintained. Looks like the above sale was made at a discount to net assets & company was probably not in a good bargaining position a current time, particularly with the company sold being loss making & Avon probably happy to reduce its gearing. Still watching for now.

WOODIE - 18 Feb 2008 16:40 - 18 of 78

LONDON (Thomson Financial) - Avon Rubber PLC said chairman Richard Needham bought 15,000 shares at 100 pence each, and now holds 41,246, or a 0.14 pct stake

Guscavalier - 18 Feb 2008 18:52 - 19 of 78

Good spot WOODIE. Other Director holdings:

S. Stone 59,655 T.Stead 57,608 L.Richards 39,534 B.Duckworth 31,000
Stella Pierce 21,000

Be interesting to see if any of these Directors buy as well. Still just the sort of guide we are looking for. sp100p

Guscavalier - 21 Apr 2008 08:36 - 20 of 78

21 April 2008
AVON RUBBER p.l.c.

('Avon', the 'Group' or the 'Company')

TRADING UPDATE AND BOARD CHANGES

The Company is issuing the following update in respect of the half year ended on
31 March 2008.

In our AGM statement we noted that growth in our Protection and Defence business
had been slower than we anticipated and that the Company was expecting
confirmation of the multi-year contract for the new M50 US military respirator
in the very near future. The regulatory and administrative processes undertaken
by the US Government for contracts of this value and duration have taken much
longer than previously projected. We are however now in final contract
negotiations with the Department of Defense for this 5 year contract worth in
excess of US$100million. A follow-on requirements option to cover significant
additional demand over a period of up to 10 years will be executed at the same
time. In the interim, government funding has already been committed for long
lead items to allow us to commence production immediately under this programme.

The effect has been to delay sales on the main production contract into the
second half of the year. This will mean that the Group will incur a loss for the
half year. Once the multi-year contract is received however, it will provide the
basis for increased turnover and a return to profitability in the second half of
the year making a profit for the year as a whole. The 2009 financial year should
reflect the full benefit of this new business.

At the same time, Terry Stead has decided to stand down as Chief Executive with
immediate effect and will be succeeded by Peter Slabbert, Finance Director.

The Chairman, Sir Richard Needham, commented:

'Although the market and shareholders will be disappointed with our first half
Protection results, the Board is confident that the Company is very close to
receiving the multi-year order for the Joint Service General Purpose Mask from
the US Government. It is not unusual for there to be teething problems with new
and advanced programmes of this nature and we have experienced further
unexpected delays. The order should deliver a long-term growing and profitable
revenue stream for our Protection operation to complement the already successful
Dairy business. To win the world's largest contract for the world's most
advanced respirator represents an enormous achievement for the Company.'

'We have now reached the point of restructuring where Avon Rubber is a high
value-added, defence and dairy focused company. Terry Stead has therefore stood
down as CEO. His successor is Peter Slabbert our Finance Director. I am certain
that his experience and expertise make him the ideal candidate to take the
Company forward.'

Terry Stead said:

'Having completed the major reorganisation from a mainly automotive business,
and with the imminence of the multi-year order for the Joint Services General
Purpose Mask, I feel now is the right time for the Group to move forward under
new leadership. I wish Peter and his team every success in delivering the
benefits from these substantial opportunities.'

Commenting, Peter Slabbert said:

'I would like to pay tribute to Terry Stead's contribution to the company over
10 years as Finance Director and then CEO. During that time he has overseen the
repositioning of the company from a predominantly automotive business to one
focused on international defence and dairy markets.'

< END >

Mr Stead imho has tried to put a positive outlook on things,however, did he decide to go or was he pushed. Avon needs to get this US defense contract and these delays have given the market the jitters. However, if the contract comes through, the Company's return to profit over coming years ill propel the sp alot higher from the current 86p level. Moreover, if the outlook does now look more positive, a bid may emerge with a view to splitting the business up. With the shares totally unloved, this may be the appropriate time to take a modest interest.

hlyeo98 - 27 Nov 2008 19:58 - 21 of 78

Avon tumbles to loss - MoneyAM


Avon Rubber today reported a full-year loss of 19.5m, compared to a profit of 1.1m last time.

Group revenue grew to 54.6m in the year to September 30th 2008, up from 48.7m in 2007.

The company will pay no dividend.

Peter Slabbert, CEO, commented: 'Our Dairy business remains successful, while the 10 year US Government M50 respirator programme, awarded in 2008, will provide strong and consistent future sales volumes contributing to a return to profitability in our Protection & Defence business.

In the current difficult credit markets the agreement of facilities with our bankers to 30th June 2010 gives the Group a stable platform from which to capitalise on the opportunities available to it in its chosen markets.'


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