Business
AGM & IMS
AGM & IMS.
About this update from Avon Technologies Plc
[{"type":"text","content":"\n RNS Number : 9699L Avon Rubber PLC 21 January 2009 \n \n\n\nEmbargoed until 7.00 a.m. Wednesday 21 January 2009\n\n\nAVON RUBBER p.l.c.\n('Avon', the 'Group' or the 'Company')\n\nAGM and Interim Management Statement\n \nAvon Rubber p.l.c. issues this interim management statement for the period since 1 October 2008, ahead of its Annual General Meeting to be held at 10.30 a.m. today, 21 January 2009. \n\nIn increasingly challenging global economic conditions, Avon has returned to profitability (Profit Before Interest and Tax from continuing operations) in the three months to 31 December 2008, the first quarter of our financial year. The Protection & Defence business, led by our US Cadillac facility producing M50 mask systems for the US Government, has developed in line with our expectations and is meeting customer delivery schedules. The Dairy business has continued its strong 2008 performance. \n\nThe Cadillac facility has fulfilled its production and delivery schedule under the multi-year US Government contract and for a second quarter in succession has been profitable on a month by month basis, contributing to the Group's performance. We have received an order for 2009 from the US Government under the multi-year contract for 100,000 mask systems, valued at $18m.\n\nAvon-ISI, which sells primarily to fire services in the US, has experienced difficult market conditions in the first quarter. We have implemented a cost reduction program which together with a stronger order book will improve this business' performance in the second quarter. \n\nSales by our Dairy business globally were strong and we expect this to remain the case. Falling milk prices may lead to a slightly softer market in the remainder of 2009, but the benefits of lower input costs, as falling oil prices are passed on by suppliers, should be positive. \n\nThe strengthening of our two major trading currencies, the Euro and the US Dollar, throughout 2008, is continuing to be of benefit to trading overall, although the strengthening of the US Dollar has increased our reported level of net debt by £3.2m due to the high proportion of US Dollar borrowings. Net debt at 31 December 2008 was £19.2m, (30 September 2008: £15.1m). The Group has banking facilities which run to June 2010, of £22.4m at 31 December 2008 exchange rates.&n...