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

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.

AVON

Beats consensus forecasts easily on adjusted pre tax and EPS.

19 Nov 2014 Avon Rubber PLC AVON N+1 Singer Buy 0.00 659.50 750.00 760.00 Reiterates

19 Nov 2014 Avon Rubber PLC AVON Investec Buy 672.50 659.50 720.00 800.00 Retains

Avon Rubber operating profits up

19 November 2014 | 07:45am
StockMarketWire.com - Avon Rubber's revenue for the year to the end of September was flat at £124.8m (2013: £124.9m) but increased 5% on a constant currency basis.

Operating profit before depreciation and amortisation (EBITDA) rose 14% to £22.9m (2013: £20.0m) and operating profit rose 20% to £17.0m (2013: £14.2m) (an increase of 26% at constant currency).

The progressive strengthening of sterling during the year gave the group a foreign exchange translation headwind. The US $/£ average rate was $1.65 (2013: $1.56) and this 9 cent headwind was equivalent to £5.7m at a revenue level and £0.8m at an operating profit level.

Chief executive Peter Slabbert said: "2014 has been an excellent year reflecting the strategic decisions made over the last three years to invest in innovative new products and technologies while expanding our international markets. This strategy will continue to drive growth in the years ahead."
- See more at: http://www.stockmarketwire.com/article/4926141/Avon-Rubber-operating-profits-up.html#sthash.d5kADz82.dpuf

19 Nov 2014 Avon Rubber PLC AVON WH Ireland Securities Buy 671.25 659.50 800.00 825.00 Retains

AVON...........Avon Rubber

On the verge of a breakout.

AVON..... AVON RUBBER chart breakout on excelent results. Trades on a forward P/E of just over 15 to 2015.

Market Buzz

WH Ireland says buy Avon Rubber on positive FY results

Wed, 19 November 2014


WH Ireland says buy Avon Rubber on positive FY results



Avon Rubber
Price: 702.50

Chg: 43.00

Chg %: 6.52%


Broker WH Ireland is advising investors to inflate their portfolios with Avon Rubber after the maker of gas masks and milking equipment lifted its annual profits by 21.2% to £16.6m.


Avon said orders in its protection and defence division, which makes masks and other equipment for emergency services, the military and industrial and energy customers around the world, had risen 26% to £93m, while 2015 orders were already at £33m.

WH Ireland said the outlook for Avon was highly encouraging and raised its two-year fully diluted earnings per share expectations by 5.9% for both years.

"We maintain our 'buy' recommendation and raise our share price target to 825p from 800p," the broker said.

Shares rose 23.5p or 3.6% to 683p at 13:07 in London

>Avon Rubber jumps as profits beat expectations
Avon Rubber's rising profits have come in just as expected, says Questor


Avon Rubber makes products used in milking cows

By John Ficenec, Questor Editor6:00AM GMT 20 Nov 2014

Avon Rubber
702½p+43p
Questor says BUY
MANUFACTURING group Avon Rubber reported a strong rise in profits for the year, leading brokers to upgrade expectations, which helped to send the shares up more than 5pc yesterday.
The Wiltshire-headquartered group said adjusted pre-tax profits were up from £13.7m to £16.6m during the period, with revenue flat at £124.8m.
Chief executive Peter Slabbert hailed an “excellent year” during which Avon was steadily taking control of its distribution network, allowing it to charge retail prices rather than wholesale prices for its goods. The difference between the wholesale and retail price can be as much as 33pc.
Avon Rubber manufactures gas masks for the military and rubber items used by dairy farmers in the milking process; and the majority of the profit comes from the provision of those gas masks to defence clients.
Although defence budgets are under pressure worldwide, Avon said a strong order intake in Protection & Defence put the company in a good position for next year. It said it was well placed as the sole US defence supplier, where it is locked midway into a 10-year contract. Avon said orders of its M50 gas mask provided good revenue visibility.

The company now has a much stronger balance sheet position after it eliminated its £10.9m debt and turned it round to a £2.9m cash balance by the year end at September 30. Avon took charges of £2.3m during the year, the majority of which related to closing down old manufacturing facilities in the US. The company expects to make savings of £1m a year from next year following the closure.
Avon also generated plenty of cash during the year, the amount from operations almost doubling and investment spending falling sharply.
Meanwhile, the annual dividend was increased by 30pc to 5.61p, with the shares going ex-dividend on February 18 and payable on March 20. Although the dividend only offers a forecast yield of 0.9pc, it is expected to increase by more than 20pc and is covered eight times by earnings.
Questor recommended buying the shares as we flagged the possibility of upgrades (Buy, 627p, May 1), and we stick with this position for the long term. Buy.

AVON Avon Rubber breaking out from a 6 week range formation. As been tipped several times over the XMAS period. New Products new customers.

AVON one of the Telegraphs TIPS OF THE YEAR FOR 2015

Avon Rubber
John Ficenec

The Wiltshire-based gas mask maker Avon Rubber is enjoying a strong increase in profits as the US military places big orders for new kit.

Chief executive Peter Slabbert hailed an “excellent year” after strong demand from the US military. The company was placed as the sole US defence supplier, where it is locked midway into a 10-year contract. Avon said orders of its M50 gas mask provided good revenue visibility.

The company said pre-tax profits were up from £13.7m to £16.6m during the year, on revenue flat at £124.8m. The company reported a debt free balance at the year end. Avon also generated plenty of cash during the year, as it comes to the end of a major investment phase in a new facility. The annual dividend is expected to increase by more than 20pc and is covered eight times by earnings. The shares have been on a fantastic run rising more than 28pc in the past year to hit a new record high. However, trading on 16 times forecast earnings they still look good value given the growing profits and solid balance sheet.

AVON Trades so far this morning nearly all Buys.......


09:11:00 760.00 1,500 O 752.50 765.00 Buy 16,688 814
10:08:03 764.38 77 O 752.50 765.00 Buy 15,188 814
10:00:35 764.38 130 O 752.50 765.00 Buy 15,111 814
09:51:19 763.24 845 O 751.50 765.00 Buy 14,981 814
09:49:59 760.00 33 AT 750.50 765.00 Buy 14,136 814
09:44:51 761.25 368 O 760.00 765.00 Sell 14,103 814
09:33:18 765.00 443 AT 760.00 765.00 Buy 14,103 446
09:33:11 765.00 261 AT 751.50 765.00 Buy 13,660 446
09:21:28 765.00 261 O 751.50 765.00 Buy 13,399 446
09:18:49 764.33 63 O 751.50 765.00 Buy 13,138 446
09:12:02 762.00 500 AT 751.50 763.00 Buy 13,075 446
09:11:50 762.00 500 O 751.50 762.00 Buy 12,575 446
09:10:03 757.00 500 AT 750.50 760.00 Buy 12,075 446
09:09:06 757.00 261 O 750.50 757.00 Buy 11,575 446
08:56:18 756.53 128 O 747.50 757.00 Buy 11,314 446
08:56:09 756.50 212 AT 745.50 757.00 Buy 11,186 446
08:56:09 756.50 1 AT 745.50 756.50 Buy 10,974 446
08:55:59 756.50 656 O 745.50 756.50 Buy 10,973 446
08:48:00 755.95 23 O 745.50 756.50 Buy 10,317 446
08:46:30 755.95 66 O 745.50 756.50 Buy 10,294 446
08:40:58 755.95 132 O 745.50 756.50 Buy 10,228 446
08:37:37 755.95 66 O 745.50 756.50 Buy 10,096 446
08:34:47 750.00 2,500 AT 740.50 756.50 Buy 10,030 446
08:34:37 750.00 250 O 740.50 750.00 Buy 7,530 446
08:33:02 748.00 2,500 AT 740.50 750.00 Buy 7,280 446
08:33:02 747.50 330 AT 740.50 748.00 Buy 4,780 446
08:26:19 747.15 239 O 740.50 747.50 Buy 4,450 446
08:24:51 747.28 401 O 736.50 747.50 Buy 4,211 446
08:20:27 746.95 133 O 736.50 747.50 Buy 3,810 446
08:15:24 746.95 135 O 736.50 747.50 Buy 3,677 446
08:12:38 747.28 321 O 736.50 747.50 Buy 3,542 446
08:05:45 736.50 200 AT 736.50 747.50 Sell 3,221 446
08:02:30 738.50 246 O 735.50 747.50 Sell 3,221 246
08:01:55 744.81 666 O 735.50 747.50 Buy 3,221 0
08:01:12 743.50 500 AT 735.50 745.00 Buy 2,555 0
08:01:12 743.00 256 AT 735.50 743.50 Buy 2,055 0
08:00:43 741.50 248 AT 730.50 743.00 Buy 1,799 0
08:00:39 743.00 740 AT 730.50 743.50 Buy 1,551 0
08:00:39 743.00 273 AT 730.50 743.00 Buy 811 0
08:00:32 742.75 538 O 730.50 743.00 Buy 538 0

WEEKLY TRADES VOLUME HISTORY

Date Buy Vol Sell Vol Total Vol
24/12/2014 765 2,150 2,915
23/12/2014 6,489 2,668 9,157
22/12/2014 19,911 28,652 48,563

PERIODIC TRADES VOLUME SUMMARY

Date Low Vol High Vol Avg Vol
1 week 2,915 48,563 16,639
1 month 2,915 649,433 45,412
3 months 1,670 649,433 34,516
1 year 496 649,433 31,990

LATEST BROKER VIEWS

Date Broker New target Recomm.
19 Nov WH Ireland... 825.00 Buy
19 Nov Investec 800.00 Buy
19 Nov N+1 Singer 760.00 Buy
7 Oct N+1 Singer 750.00 Buy
3 Oct Investec 720.00 Buy
3 Oct N+1 Singer 720.00 Buy
6 Aug Investec 700.00 Add
10 Jun Investec 680.00 Add
6 Jun N+1 Singer 720.00 Buy
6 May N+1 Singer 720.00 Buy
Broker Recommendations for Avon Rubber

Annual General Meeting - trading update for the quarter ended 31 December 2014
Avon is pleased to report that trading in the first quarter of the financial year has continued in line with the Board's expectations.

Protection & Defence
In Protection & Defence, after delivering a high level of non-DOD orders during the 2014 financial year, mask systems production has, as planned, been focused on fulfilling deliveries to the DoD under our 10 year sole source contract for the JSGPM M50 mask. This is likely to continue for the remainder of the first half year.

Encouragingly, there is a high level of quotes out for our higher margin export military masks although, as always, the timing of order receipt remains unpredictable. We have seen year on year growth in our fire service products in the first quarter and the level of enquiries for our new Deltair SCBA have been strong. Our flexible fabrications business, AEF, has secured orders which will sustain production into the second half of the financial year.

Dairy
The positive momentum generated in the second half of 2014 in the Dairy business has continued and trading has been extremely strong in the first quarter. Take up by farms of the innovative Cluster Exchange service remains at encouraging levels in both North America and Europe.

We have also set up a sales and distribution facility in Brazil to service the Brazilian and wider South American dairy market.

Balance sheet
The Group continues to be strongly cash generative. Net cash at 31 December 2014 was £6.4m (30 September 2014: £2.9m).

StockMarketWire.com
Avon Rubber has completed the acquisition of 100% of the share capital of Hudstar Systems for $5.1m in cash from existing cash resources.

Florida-based Hudstar is a leading designer and manufacturer of electronic control systems used in powered and supplied air respiratory protection systems, largely for Avon's award winning Deltair product.

Avon says that Hudstar is a private US company and does not produce audited accounts. Nevertheless, based on the cost savings that are expected to be achieved, Avon expects this acquisition to be modestly earnings enhancing to the group in its next full financial year.

StockMarketWire.com
Avon Rubber's wholly owned subsidiary, Avon Rubber Italia, has acquired 100% of the share capital and shareholder loan notes of InterPuls, for an enterprise value of €29.75m, including the assumption of InterPuls's net debt of approximately €4.0m.

The cash consideration of €25.75m was paid on completion and was funded from existing Group cash balances and existing debt facilities.

InterPuls - etablished in 1974 and located in Albinea - is a private family owned company incorporated in Italy. InterPuls has developed a unique range of specialist milking components, including pulsators, milk meters, automatic cluster removers and vacuum pumps, enabling customers throughout the world to configure state of the art milking systems.

In addition to traditional milking components, InterPuls is expanding into high-technology sensors and devices to monitor the life cycle of a cow, analysing milk production, reproduction and health data to provide critical management information to increase operational efficiency of the farm. Following the acquisition its products will be sold under the new 'Milkrite-InterPuls' brand, which will be positioned as a leading provider of milking point technology, providing complete teat to pipeline solutions for the Dairy sector.

Avon expects the acquisition to be significantly earnings enhancing in its 2016 financial year.