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

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.

Closing statement for the year end 30 September 2015
Avon is pleased to report that the financial year has ended strongly.

This was primarily driven by the receipt and rapid fulfillment of a late order for respirators from a customer in the Middle East. This, together with strong trading in our North American law enforcement market, leads the Board to anticipate that the adjusted operating profit for the year will be significantly ahead of current market expectations.

As reported in the 2 September 2015 trading update, a number of high value Middle Eastern opportunities remain in the pipeline and we still expect to see the benefit of these orders in 2016.

Commenting, Andrew Lewis, Interim Chief Executive Officer said, "We have world leading respiratory protection products and, while predicting the timing of orders is often difficult, the ability to meet this customer's requirement demonstrates our operational flexibility and the dedication of the team to exceed our customers' expectations."

Preliminary results for the year ended 30 September 2015 will be announced on 18 November 2015.

StockMarketWire.com
Avon Rubber continues to be strongly cash generative despite dairy market conditions remaining soft in the first quarter.

In Protection & Defence, mask systems production has, as planned, been focused on fulfilling deliveries to the DOD under a 10 year sole source contract for the JSGPM M50 mask.

Avon says it continues to see a number of higher margin export opportunities although, as always, the timing of order receipt remains unpredictable.

It adds: "We are currently planning for one of these to be received and fulfilled in the first half of this financial year.

"The integration of the Argus business acquired in October 2015 has progressed well, with the manufacturing operation moved from Chelmsford to our Melksham facility during the Christmas period."

The group says that as previously highlighted, general market conditions for dairy farmers, particularly in Europe, have been weak as milk prices have been low.

It says this typically cyclical market dynamic has, as expected, reduced demand for its consumable products as farmers extend the life through over using product. The capital nature of the InterPuls product makes the replacement cycle longer. The take up by farms of the innovative Cluster Exchange service remains at encouraging levels in both North America and Europe.

It adds; "We are pleased with the integration of InterPuls, acquired in August 2015, into the wider Dairy business and expect to realise the long-term strategic benefits that have been identified in due course."

The group says it continues to be strongly cash generative. Net debt at 31 December was GBP10.0m (30 September: GBP13.2m).

StockMarketWire.com
Avon Rubber has won an order for 166,623 M50 mask systems worth USD42m under its 10 year sole source contract with the US Department of Defense. This order secures the anticipated volume of M50 mask system sales to the DOD for our 2016 financial year.

Chief executive Rob Rennie said: "The continued fielding of our M50 mask to all US service personnel pursuant to the JSGPM contract vehicle continues in line with our expectations. The M50 provides US troops with state of the art protection against CBRN threats."

Ex-divi Thurs 6th Aug (3.16p)

StockMarketWire.com
Avon Rubber expects full-year pre-tax profits to be in line with current market forecasts.

The group's trading update for the five months ended 31 August says: "In Protection & Defence, we are pleased to announce that our unique CBRN/CO Escape Hood has received NIOSH approval and we have received an order worth $9m from a major US city police department for this new product, the majority of which will be delivered this financial year.

"Mask systems production has, as planned, been focused on fulfilling deliveries to the US Department of Defense under our 10 year sole source contract for the JSGPM M50 mask systems. We continue to see a number of higher margin export opportunities for military masks although, as always, the timing of order receipt is unpredictable; these opportunities remain live and are being progressed, albeit more slowly than previously expected, with the result that we now expect to receive and deliver these orders in our 2017 financial year."

Dairy:

It says: "General market conditions for dairy farmers have been weak for the majority of the period, as milk prices have been low. This cyclical market dynamic has, as expected, reduced demand for our consumable products as farmers overuse product to extend its life. This has been more noticeable in the InterPuls business where the nature of the product is more capital/semi-consumable than consumable.

"Milk prices in our major markets do, however, appear to have bottomed-out and have started to improve in the final quarter.

"The programme for the roll out of InterPuls products through existing Milkrite distribution in the US has commenced with the first revenues seen in the final quarter of the financial year.

"This, together with our expectation that the recent improvement in milk price will continue and positively impact demand for our products, leaves the Board confident of the ability of the Dairy business to make progress in 2017."

Chief executive Rob Rennie said: "The 2016 result demonstrates the robustness of our business and we exit the year as a stronger business looking forward to the many opportunities available to us in 2017."

Full year results for the year ended 30 September will be announced on 16 November.

Excellent set of interim results this morning.

An unexpected 30% hike in the interim divi too.