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

Broker support firmly behind this one and with a cheap rating of just over 10 to 2012 im not suprised, far to cheap.........

Avon Rubber PLC

FORECASTS 2011 2012
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Edison Investment Research
08-08-11 None 11.77 31.00 2.50 13.24 33.10 2.80
Altium Securities
08-08-11 BUY 10.00 24.60 3.00 11.60 28.50 3.60
Arden Partners
05-08-11 BUY 9.70 24.00 3.00 11.20 26.90 4.50
Westhouse Securities
15-06-11 BUY 8.70 20.20 3.50 10.90 25.20 5.00
W H Ireland Ltd
02-02-11 BUY 9.20 19.80 3.00 10.80 23.60 3.60

2011 2012
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 10.00 24.64 2.99 11.68 28.12 3.93
1 Month Change 0.03 0.10 -0.01 0.02 0.08 -0.03
3 Month Change -0.10 -0.25 0.05 -0.04 -0.10 0.12


GROWTH
2010 (A) 2011 (E) 2012 (E)

Norm. EPS 36.20% 70.67% 14.11%
DPS % % 31.32%

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)

EBITDA 13.59m 15.33m 17.03m
EBIT 9.27m m m
Dividend Yield % 1.05% 1.38%
Dividend Cover x 8.24x 7.16x
PER 19.74x 11.57x 10.14x
PEG 0.54f 0.16f 0.72f
Net Asset Value PS -0.06p p p


Hemscott premium

Results thursday,

Avon Rubber focuses on three major businesses: it provides rubber products for defence companies, liners and tubing for dairies to milk the cows, and gas masks for the military and emergency services. The group announced yesterday it had landed a lucrative three-year contract with the US Department of Defense. The deal will see Avon provide filters for use with its M50 gas mask, with the maximum contract value at $38m, and an initial order value of $11m, which will be completed this year.

The analysts were happy with the news, with Edison saying it supports its positive view on Avon's business "in these uncertain times". Besides, investors should note that the stock trades on just 8.5 times estimated earnings for next year, according to Altium, offering ample scope for upside gains, the Independent says.

Avon Rubber is a fascinating small cap with a long and chequered history. With roots in the tyre industry, it repositioned into various speciality products over the last two decades, and three quarters of revenues now come from manufacture of CBRN protective suits and respirators (with a quarter from products for the dairy industry).

What in the Cold War were NBC (nuclear, biological and chemical) suits have evolved into CBRN: with the R highlighting the increased threat of radiological contamination from terrorist activity. Every cloud has a silver lining in the defence industry.

The US accounts for 90% of Avon revenues where it is a major supplier to the Defence Department. It has turned around operationally, with operating profit in the year to September 2011 up 20% on revenues down 8%, strengthened its balance sheet and brought a sizeable pension deficit under control.

On a P/E of 10 and yielding 1%, the shares aren't a steal. But with a strategic role in US civil defence supply, market-leading technology, a profitable business model and a tiny £100m market cap, it looks a prime takeover target to me

Avon Rubber issues confident outlook
Wed 21 Nov 2012

AVON - Avon Rubber


LONDON (SHARECAST) - Avon Rubber lifted full year profit and underlined its confidence in future trading by increasing its dividend payment 20 per cent.

The group, which makes high tech rubber-based respiratory protection to military, emergency and industrial markets, said pre-tax profit rose to £11m for the year ended September 30th 2012 from £10.2m the year before. Revenue slipped to £106.6m from £107.6m previously.

Revenue at protection and defence, which represents 70% of group revenues, fell 4% to £74.6m after lower filter sales to the US Department of Defence. Revenue at its dairy division increased 6% to £32.1m

Chief Executive Peter Slabbert commented: "We have continued our successful track record of growing profits, generating cash and reducing our debt and believe that our investment in industry leading technologies in both protection and defence and dairy will deliver future revenue growth and higher margins."

Order intake in protection and defence soared 42% to £85.2m and the closing order book stood at £45.7m with £40.7m for delivery in 2013.

Avon Rubber, which opened a sales and distribution centre in China, said earnings per share rose to 26.9p during the period from 25.2p before.

Operating margins improved 0.6% to 10.9% while cash generated from operating activities of £14.7m, representing 127% of operating profit.

Net debt reduced by £3.1m to £8.7m while the dividend has been increased to 3.6p from 3p per share the year before.

5% rise today, looks good

http://www.edisoninvestmentresearch.co.uk/researchreports/Avonrubber261112update.pdf

A buy in this weeks IC, moving into China couldgive the company access to Asias fast-growth markets. Broker Investec Securities expects adjusted pre-tax profit for 2013 of £12.3m, giving EPS of 28.3p {from11m and 25.4p in 2012} Expect further upside.

A N N U A L R E P O R T
2012
investing in innovation

http://www.avon-rubber.com/Downloads/corporate/0246AC%20AR_A%202012%20120pp%20WEB2.pdf

Tipped in the shares mag for 2013 - Should offer dependable growth owing to its niche positioning.

Military mask builder Avon rubber(AVON) can point to an enviable resilient performance in 2012 and expect more of the same in the new year. Fears over reduced government spend in the West leave numerous other defence plays under pressure but strong ties with the US should support the Wiltshire firm through to -end 2014, while a steady stream of innovation continues to build a solid platform for the future.
The outlook for defence remains strong despite last years 3.7% sales slide to £74.6
million . Although the timing of certain deals may remain unpridictable, owing to government austerity, product demand remains solid. A healthy order book stood at £85.2 million at the end of the year, up 42% from 2011, with £40.7 million due for delivery in 2013. The company continues to plough capital into innovation, particularly within the defence division , as well as property, plant, equiptment.
Avons move into Dairy provides a buttress against any uncertainty related to defence expenditure. The opening of a sales and distribution hub in China will provide
a base from which to push into lucrative markets of the Asia-pacific region.


Also in the final list of UK stock market awards 2013 run by shares in the Best industrial goods and services plc along with Babcock int,GKN,Halma, Rentokil initial and Serco.
The awards will also seek to answer who is truly creating shareholder value ?
The winners in each sector will be judged on their ability to allocate capital in the most effective manor possible. They will be scored on how well they balance risk with reward and ranked by their track record at generating the earnings or dividend growth that inturn yields the optimal total shareholder return

Not stopping for breath in 2013.

:-))

Trading statement due on Thursday 7th Feb.

Strong purchasing today

Strictly embargoed until 07:00 Thursday 7 February 2013



AVON RUBBER p.l.c. ("Avon", the "Group" or the "Company")

INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 OCTOBER 2012 TO 6 FEBRUARY 2013



Introduction

The financial year has started positively and the investments we have made and continue to make in innovative new products and to gain access to new markets have positioned us well to deliver further growth this year.



Protection & Defence

In Protection & Defence an improved order book was carried forward into this financial year and included the £14.7m Middle Eastern order announced in May 2012. This has resulted in a stronger first quarter performance compared to the previous year.



We have delivered M50 mask systems to the US Department of Defense (DoD) at a similar rate to 2012 and, despite continued uncertainty, we believe that we are well positioned and should not be significantly impacted by US Government cuts in the defence budget. We already have orders in hand for mask systems through to the end of our third quarter. As expected, we delivered 130,000 pairs of M61 filters during the period. We also secured orders for a further 100,000 pairs which we expect to deliver in our second quarter. So far sales to the US homeland security and first responder markets have been significantly stronger than in 2012.



Our first new product under Project Fusion was launched during the quarter. The PC50 is an air purifying respirator targeted specifically at the US correctional facilities market. Project Fusion as a whole, which is expected to deliver further organic growth from 2014, remains on track.



Dairy

The Milkrite ImpulseAir mouthpiece vented liner continues to perform well and we have seen further quarter on quarter sales growth at our newly established Chinese operation.



In other markets lower milk prices and higher feed costs in our traditional markets have reduced farmer revenues and margins, leading to fluctuating demand for our consumable products in the first quarter of our financial year. Planned new product introductions should provide opportunities for growth in the remainder of the year.





Net debt

The Group's balance sheet remains robust with net debt at 31 December 2012 at £10.1m (30 September 2012: £8.7m) due to the timing of working capital movements and the £1.8m of funding provided to the Employee Share Ownership Trusts to fund the purchase of the Company's shares for awards under the Performance Share Plan.





Board changes

As previously announced Sir Richard Needham will retire as a Director at the conclusion of today's Annual General Meeting.



Outlook

Given the positive start to the year, the Board is confident of meeting full year market expectations, despite the challenges provided by the uncertain economic and political environment, particularly in the US.



Half Year announcement

The Group will announce its results for the half year to 31 March 2013 on Wednesday 1st May 2013.

Avon Rubber: Investec raises target price from 390p to 420p and downgrades from hold to sell.

StockMarketWire.com
Avon Rubber expects full year result to be comfortably ahead of current market forecasts.

Avon says trading in the second half of the financial year has continued to be strong and currency headwinds have also reduced since the trading update made on 5 August.

In Protection & Defence, in the second half of the financial year we have achieved a richer sales mix than previously expected, driven predominantly by a Middle Eastern order that we were able to ship earlier than anticipated. Operational flexibility to meet this customer's requirement at short notice was achieved by switching production from DoD orders and means that we will carry forward a stronger DoD order book into the 2015 financial year, with order coverage for the first half of 2015. Trading in the Dairy business has been at a level ahead of the previous year, as we expected it would be, with the innovative Cluster Exchange service continuing to make excellent progress in both North America and Europe.

The group will announce its results for the year to 30 September on 19 November.