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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Avon Technologies Plc | LSE:AVON | London | Ordinary Share | GB0000667013 | ORD #1 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -20.00 | -1.36% | 1,446.00 | 1,452.00 | 1,454.00 | 1,460.00 | 1,444.00 | 1,460.00 | 88,808 | 16:35:03 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Rubber,plastics Hose & Belts | 275M | 3M | 0.0991 | 146.72 | 443.59M |
Hot Features
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TIDMAVON
RNS Number : 6640L
Avon Rubber PLC
11 May 2010
News Release
Strictly embargoed until 07:00 11 May 2010
AVON RUBBER p.l.c.
("Avon", the "Group" or the "Company")
Unaudited interim results for the six months ended 31 March 2010
+------------------------------------------------+-------------+-------------+
| | 31 March | 31 March |
| | 2010 | 2009 |
| | | |
| | GBPMillions | GBPMillions |
+------------------------------------------------+-------------+-------------+
| REVENUE | 56.5 | 48.4 |
+------------------------------------------------+-------------+-------------+
| EARNINGS BEFORE INTEREST, TAXATION, | | |
| DEPRECIATION AND AMORTISATION | 6.2 | 3.9 |
+------------------------------------------------+-------------+-------------+
| OPERATING PROFIT | 4.1 | 2.1 |
+------------------------------------------------+-------------+-------------+
| PROFIT BEFORE TAX | 2.9 | 1.4 |
+------------------------------------------------+-------------+-------------+
| NET DEBT | 14.4 | 16.5 |
+------------------------------------------------+-------------+-------------+
| BASIC EARNINGS PER SHARE | 6.1p | 2.7p |
+------------------------------------------------+-------------+-------------+
· Revenue up 17% (23% at constant currency)
· Operating profit up 91% (118% at constant currency)
· Continuing operating activities (before exceptional items) generated cash
of GBP4.9m
· Basic Earnings Per Share up 126% (162% at constant currency)
· Continued good level of order intake in Protection & Defence, with closing
order book of GBP69.5m
· Significant year on year improvement in the Dairy business with the
outsourcing of European dairy production completed on time and to cost
Peter Slabbert, Chief Executive commented: "Avon has made good progress during
the first half of 2010 growing revenue, doubling operating profit and
maintaining the order book at the strong levels with which it began the year.
In Protection & Defence the level of activity with our core customers is
healthy. We remain confident of winning orders in the higher margin Homeland
Security and Foreign Military markets at an increasing rate, although the timing
of these successes remains difficult to predict. Continued investment in new
products, product approvals and additional filter capacity provide the
opportunity for further growth.
In Dairy, the recovery in the US milk price, success of the European outsourcing
and strength of the Milk-Rite brand leave us confident that the progress seen
during this period is sustainable and provides a foundation for growth from new
products and markets."
For further enquiries, please contact:
+----------------+-------------+------------------------------------------+
| Avon | | |
| Rubber | | |
| p.l.c. | | |
+----------------+-------------+------------------------------------------+
| | | |
+----------------+-------------+------------------------------------------+
| Peter | Today: | 020 7067 0700 |
| Slabbert, | | |
| Chief | | |
| Executive | | |
+----------------+-------------+------------------------------------------+
| Andrew | Thereafter: | 01225 896 870 |
| Lewis, | | |
| Group | | |
| Finance | | |
| Director | | |
+----------------+-------------+------------------------------------------+
| | | 01225 896 830 |
+----------------+-------------+------------------------------------------+
| | | |
+----------------+-------------+------------------------------------------+
| Fiona | | 01225 896 871 |
| Stewart, | | |
| Corporate | | |
| Communications | | |
| Executive | | |
+----------------+-------------+------------------------------------------+
| | | |
+----------------+-------------+------------------------------------------+
| Weber | | |
| Shandwick | | |
| Financial | | |
+----------------+-------------+------------------------------------------+
| Nick | | 020 7067 0700 |
| Oborne | | |
+----------------+-------------+------------------------------------------+
| Clare | | |
| Thomas | | |
+----------------+-------------+------------------------------------------+
| | | |
+----------------+-------------+------------------------------------------+
NOTES TO EDITORS: Avon Rubber p.l.c. is a world leader in the design, test and
manufacture of advanced Chemical, Biological, Radiological and Nuclear (CBRN)
respiratory protection solutions to the worlds military, law enforcement, first
responder, emergency services, fire and industrial markets. Avon has a unique
capability in CBRN protection based on a range of advanced CBRN technologies in
respirator design, filtration and compressed air breathing apparatus. This
enables Avon to develop specialised solutions that take full account of user
requirements. Avon also owns a world leading dairy business manufacturing liners
and tubing for the automated milking process. For further information please
visit the Group's website www.avon-rubber.com
INTERIM MANAGEMENT REPORT
INTRODUCTION
Avon has made good progress during the first half of 2010, growing revenue,
doubling operating profit and maintaining the order book at the strong levels
with which it began the year.
The Protection & Defence business has secured significant additional orders from
both the US Department of Defense (DoD) and the UK Ministry of Defence (MoD) as
well as delivering a level of non DoD / MoD order intake which was in excess of
any prior half year period.
Our Dairy business has improved significantly year on year as market conditions
have improved and our European production outsourcing project has delivered
benefits earlier than expected.
RESULTS
Revenue increased by 17% (23% at constant currency) in the half year to GBP56.5m
(2009: GBP48.4m) driven by improvements in the dairy market and non DoD / MoD
Protection & Defence revenues.
The Group made an operating profit of GBP4.1m (2009: GBP2.1m), an increase of
91% (118% at constant currency). Earnings before Interest, Tax, Depreciation and
Amortisation ('EBITDA') were GBP6.2m (2009: GBP3.9m), up 59% (75% at constant
currency), meaning our return on sales KPI (defined as EBITDA divided by
revenue) improved to 10.9% from 8.0% in 2009.
Net finance costs reduced to GBP0.5m (2009: GBP0.8m) reflecting the lower level
of core borrowings in 2010.
The non cash finance expense on our net retirement benefit deficit of GBP0.4m
(2009: GBP0.1m credit) was due to changed actuarial assumptions, the most
significant of which was the AA Corporate bond yield at 30 September 2009.
This resulted in a profit before tax of GBP2.9m (2009: GBP1.4m) and after a tax
charge of GBP1.2m (2009: GBP0.6m), an effective rate of 41% (2009: 44%), the
Group recorded a profit for the period after tax of GBP1.7m (2009: GBP0.8m). The
basic earnings per share were 6.1p (2009: 2.7p).
NET DEBT AND CASHFLOW
Net debt increased from GBP13.6m at the 2009 year end to GBP14.4m at 31 March
2010. The stronger dollar added GBP0.5m to our reported net debt. Total bank
facilities at 31 March 2010 are GBP23.5m, the majority of which are US$
denominated and committed to 30 June 2011.
Continuing operating activities before exceptional items generated cash of
GBP4.9m (2009: GBP3.9m), representing 121% of operating profit (2009: 183%).
Working capital increased by GBP2.1m due to receivables being high at 31 March
2010 as significant non MoD and DoD shipments were made in the latter part of
the second quarter.
Capital expenditure of GBP2.8m (2009: GBP1.4m) was higher than in the first half
of last year as work commenced on laying down additional filter capacity in our
Cadillac facility. The total cost of this project is estimated at $5m and it is
due to be completed in the final quarter of our 2010 financial year, doubling
our filter production capability to meet current demand.
PROTECTION & DEFENCE
Revenue for the division was GBP43.3m (2009: GBP35.7m) an increase of 21% (28%
at constant currency). This generated an operating profit of GBP3.0m (2009:
GBP2.0m) and EBITDA of GBP4.9m (2009: GBP3.4m). Return on sales (as defined
above) improved to 11.3% compared to 9.4% in 2009.
The US operation performed well in the period, securing orders for 34,000 mask
systems under the ten year DoD requirements option as well as having the 100,000
mask systems confirmed for year three of the five year contract. Orders valued
at $5.5m for spares and mask accessories were also won from the DoD. In addition
to the DoD business, orders and sales of the homeland security / foreign
military variants of the M50 mask were at a level higher than any previous half
year with significant orders received from Saudi Arabia, the Canadian Police and
the Italian Navy. Avon's respiratory protection products are clearly becoming
the mask of choice in defence and homeland security markets around the world and
we expect the proportion of revenues from these sources to increase
significantly from the current 20% over the medium term.
In the UK, the MoD exercised the second year of its three year contract for S10
masks worth GBP3.0m. In addition an incremental delivery of GBP1.3m was made to
support operational requirements. We also celebrated the one millionth S10 mask
delivery to the MoD with no recorded quality problems and an excellent on time
delivery record. Despite this track record and the availability of the world
leading replacement product in the 50 series respirator, the UK MoD appear to
remain committed to changing to an alternative product and supplier from 2012.
Avon ISI experienced difficult market conditions and incurred an operating loss
in the first half of 2010. The actions taken in the second half of 2009 have,
however, seen an improvement in ISI's performance both year on year and from the
second half of 2009 to this period to the extent that it reached breakeven at an
EBITDA level in the current period.
In the previous financial year, AEF returned to profitability and a divestment
process was initiated, with the business disclosed as held for sale and its
results shown as discontinued operations in the 2009 financial statements. As a
result of uncertainty created by a contractual dispute with one of its major
customers, we have not been able to conclude a transaction on satisfactory
terms.
The Board has therefore withdrawn AEF from the sale process and its results have
been shown within continuing operations for the half year to 31 March 2010. The
dispute has had no impact on current trading, which shows an improvement over
2009, and we expect a favourable resolution in due course.
The division continues to enjoy a healthy order book, which stood at GBP69.5m at
the period end.
DAIRY
Revenues for the division were up 4% (6% at constant currency) at GBP13.2m
(2009: GBP12.7m) which generated an operating profit of GBP2.0m (2009: GBP1.3m).
EBITDA was GBP2.2m (2009: GBP1.5m), giving a return on sales (as defined above)
of 16.9%, up from 11.6% in 2009.
Our Dairy business benefited from a stronger market and this, together with the
benefits of the outsourcing of the manufacture of European dairy products,
significantly improved profitability.
RESEARCH & DEVELOPMENT
Our product development efforts have continued in both divisions. In Protection
& Defence we have received NIOSH (US) and CE (European) product approvals for
our FM53 mask. In the second half of the year we are scheduled to achieve CE
approvals for our ST53 multi-role breathing apparatus in both short and
long-duration configurations and we expect to launch the first of our new range
of powered air (PAPR) products.
In Dairy we have launched a new concept vented liner and have started to expand
our product range under the Milk-Rite brand beyond liners and tubing into non
rubber goods such as pulsators and claws.
We expect to see the benefits of these efforts, which underpin the long term
prosperity of the Group, in our 2011 financial year.
INVESTMENTS
We are adding filter capacity in our Cadillac facility which is scheduled to be
commissioned during quarter four of this financial year. The addition is a new
fully automated second filter line that will run independently from the existing
capability. It will double current filter manufacturing capacity and its state
of the art robotics and controls will deliver efficiency as well as output
improvement. This investment reinforces our commitment to filter manufacture and
recognizes the importance of the consumables revenue stream in the future.
In a generally depressed financial environment where many in our industries are
cutting costs, we have continued to invest in our sales, marketing and product
development activities. We have a new sales office in Malaysia and our Baltimore
based US business development team will be moving to larger premises in the
second half to accommodate their expanding needs.
RETIREMENT BENEFIT OBLIGATIONS
The deficit, as measured under IAS 19, associated with the Group's UK Retirement
Benefit Obligations has reduced from GBP8.4m at 30 September 2009 to GBP5.9m at
31 March 2010. The reduction has been as a result of an increase in asset
values, offset by more prudent discount rate and inflation assumptions, both
reflecting global financial market conditions.
In respect of the 31 March 2009 triennial actuarial valuation the Company has
reached an agreement in principle with the pension scheme Trustee, although this
remains subject to filing with, and approval by, the Pensions Regulator. The
valuation shows the scheme to be 91.4% funded and as such the Company and the
Trustee have had to agree a deficit recovery plan. The plan covers a ten year
period and in the next three years the Company has agreed to pay deficit
recovery contributions of GBP300k, GBP400k and GBP500k. In addition the Company
has agreed that the payment of a dividend to shareholders would trigger further
payments linked to the amount of dividend paid, but up to a maximum of GBP400k
in any one year. This compares to GBP300k additional contributions which have
been made in each of 2008, 2009 and 2010. The subsequent years show escalating
payments, also partially linked to dividends, up to a maximum of GBP1.3m in the
tenth year. A further triennial valuation will be undertaken as at 31 March 2012
when the funding level and the recovery plan will be reviewed.
DIVIDENDS
In view of the current level of net debt and the level of investment made in
additional filter capacity in the period and committed for the second half of
the year, the Board feels it is prudent not to pay an interim dividend this
year. The Board will review the trading performance, level of net debt,
investment opportunities and available debt facilities at the year-end and
evaluate whether a dividend is appropriate at that time.
OUTLOOK
In Protection & Defence the level of activity with our core customers is
healthy. We remain confident of winning orders in the higher margin Homeland
Security and Foreign Military markets at an increasing rate, although the timing
of these successes remains difficult to predict. Continued investment in new
products, product approvals and additional filter capacity provide the
opportunity for further growth.
In Dairy, the recovery in the US milk price, success of the European outsourcing
and strength of the Milk-Rite brand leave us confident that the progress seen
during this period is sustainable and provides a foundation for growth from new
products and markets.
Peter Slabbert
Andrew Lewis
Chief Executive
Group Finance Director
10 May 201010 May 2010
Statement of Directors' responsibilities
The Directors confirm that this condensed set of financial statements has been
prepared in accordance with the International Accounting Standard 34, 'Interim
Financial Reporting' as adopted by the European Union, and that the interim
management report herein includes a fair review of the information required by
DTR4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the first six
months and their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the financial year; and
· material related party transactions in the first six months and any
material changes in the related-party transactions described in the last annual
report
Forward-looking statements
Certain statements in this half year report are forward-looking. Although the
Group believes that the expectations reflected in these forward-looking
statements are reasonable, we can give no assurance that these expectations will
prove to have been correct. Because these statements involve risks and
uncertainties, actual results may differ materially from those expressed or
implied by these forward-looking statements.
We undertake no obligation to update any forward-looking statements whether as a
result of new information, future events or otherwise.
Company website
The interim statement is available on the Company's website at
http://interim.avon-rubber.com. The maintenance and integrity of the website is
the responsibility of the Directors.
Legislation in the United Kingdom governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
Miles Ingrey-Counter
Company Secretary
10 May 2010
Consolidated Statement of Comprehensive Income
+----------------------------------------+------+-------------+-------------+-----------+
| | | Half | Half | Year to |
| | | year to | year to | 30 Sep |
| | | 31 Mar | 31 Mar | 09 |
| | | 10 | 09 | |
+----------------------------------------+------+-------------+-------------+-----------+
| | | (Unaudited) | (Unaudited) | (Audited) |
| |Note | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+------+-------------+-------------+-----------+
| Revenue | 5 | 56,519 | 48,412 | 100,900 |
+----------------------------------------+------+-------------+-------------+-----------+
| Cost of sales | | (42,421) | (36,989) | (75,834) |
+----------------------------------------+------+-------------+-------------+-----------+
| Gross profit | | 14,098 | 11,423 | 25,066 |
+----------------------------------------+------+-------------+-------------+-----------+
| Operating expenses | | (10,038) | (9,293) | (22,092) |
+----------------------------------------+------+-------------+-------------+-----------+
| Operating profit | 5 | 4,060 | 2,130 | 2,974 |
+----------------------------------------+------+-------------+-------------+-----------+
| Operating profit is analysed as: | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Before depreciation, amortisation and | | 6,152 | 3,859 | 9,660 |
| exceptional items | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Depreciation and amortisation | | (2,092) | (1,729) | (4,151) |
+----------------------------------------+------+-------------+-------------+-----------+
| Operating profit before exceptional | | 4,060 | 2,130 | 5,509 |
| items | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Exceptional operating items | | - | - | (2,535) |
+----------------------------------------+------+-------------+-------------+-----------+
| Finance income | 6 | 7 | 2 | 33 |
+----------------------------------------+------+-------------+-------------+-----------+
| Finance costs | 6 | (540) | (820) | (1,539) |
+----------------------------------------+------+-------------+-------------+-----------+
| Other finance (expense)/income | 6 | (595) | 86 | 394 |
+----------------------------------------+------+-------------+-------------+-----------+
| Profit before taxation | | 2,932 | 1,398 | 1,862 |
+----------------------------------------+------+-------------+-------------+-----------+
| Taxation | 7 | (1,201) | (615) | (2,004) |
+----------------------------------------+------+-------------+-------------+-----------+
| Profit/(loss) for the period | | 1,731 | 783 | (142) |
+----------------------------------------+------+-------------+-------------+-----------+
| Other comprehensive income | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Actuarial gain/(loss) recognised in | 2,749 | (14,256) | (53,051) |
| retirement benefit schemes | | | |
+-----------------------------------------------+-------------+-------------+-----------+
| Movement on deferred tax relating to | - | 3,992 | 12,158 |
| retirement benefit schemes | | | |
+-----------------------------------------------+-------------+-------------+-----------+
| Net exchange differences offset in | | 889 | 2,254 | 1,049 |
| reserves | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Other comprehensive income/(expense) | | | | |
| for the period, net of taxation | | 3,638 | (8,010) | (39,844) |
+----------------------------------------+------+-------------+-------------+-----------+
| Total comprehensive income/(expense) | | 5,369 | (7,227) | (39,986) |
| for the period | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Profit/(loss) attributable to: | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Owners of the parent | | 1,731 | 773 | (183) |
+----------------------------------------+------+-------------+-------------+-----------+
| Minority interest | | - | 10 | 41 |
+----------------------------------------+------+-------------+-------------+-----------+
| | | 1,731 | 783 | (142) |
+----------------------------------------+------+-------------+-------------+-----------+
| Total comprehensive income/(expense) | | | | |
| attributable to: | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Owners of the parent | | 5,369 | (7,237) | (40,027) |
+----------------------------------------+------+-------------+-------------+-----------+
| Minority interest | | - | 10 | 41 |
+----------------------------------------+------+-------------+-------------+-----------+
| | | 5,369 | (7,227) | (39,986) |
+----------------------------------------+------+-------------+-------------+-----------+
| Earnings/(loss) per share | 9 | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Basic | | 6.1p | 2.7p | (0.6)p |
+----------------------------------------+------+-------------+-------------+-----------+
| Diluted | | 5.8p | 2.6p | (0.6)p |
+----------------------------------------+------+-------------+-------------+-----------+
Consolidated Balance Sheet
+-----------------------------------------+------+-------------+-------------+-----------+
| | | Half | Half | Year |
| | | year | year to | to |
| | | to | 31 Mar | 30 Sep |
| | | 31 Mar | 09 | 09 |
| | | 10 | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| | | (Unaudited) | (Unaudited) | (Audited) |
| |Note | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Assets | | | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| Non-current assets | | | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| Intangible assets | | 9,547 | 11,234 | 9,936 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Property, plant and equipment | | 17,790 | 18,274 | 15,263 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Deferred tax assets | | 271 | 221 | 271 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Retirement benefit assets | | - | 29,300 | - |
+-----------------------------------------+------+-------------+-------------+-----------+
| | | 27,608 | 59,029 | 25,470 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Current assets | | | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| Inventories | | 12,712 | 12,259 | 9,528 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Trade and other receivables | | 20,263 | 13,205 | 12,614 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Cash and cash equivalents | | 740 | 937 | 1,041 |
+-----------------------------------------+------+-------------+-------------+-----------+
| | | 33,715 | 26,401 | 23,183 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Assets classified as held for sale | | - | 5,121 | 4,914 |
+-----------------------------------------+------+-------------+-------------+-----------+
| | | 33,715 | 31,522 | 28,097 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Liabilities | | | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| Current liabilities | | | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| Financial liabilities | | | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| - Borrowings | | 4,839 | 2,036 | 14,697 |
+-----------------------------------------+------+-------------+-------------+-----------+
| - Derivative financial instruments | | 234 | 368 | - |
+-----------------------------------------+------+-------------+-------------+-----------+
| Trade and other payables | | 22,147 | 20,926 | 16,196 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Current tax liabilities | | 2,009 | 68 | 673 |
+-----------------------------------------+------+-------------+-------------+-----------+
| | | 29,229 | 23,398 | 31,566 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Liabilities directly associated with | | - | 1,647 | 1,832 |
| assets classified as held for sale | | | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| | | 29,229 | 25,045 | 33,398 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Net current assets/(liabilities) | | 4,486 | 6,477 | (5,301) |
+-----------------------------------------+------+-------------+-------------+-----------+
| Non-current liabilities | | | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| Financial liabilities | | | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| - Borrowings | | 10,324 | 15,436 | - |
+-----------------------------------------+------+-------------+-------------+-----------+
| Deferred tax liabilities | | 2,104 | 9,297 | 2,104 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Retirement benefit obligations | | 6,791 | 928 | 9,152 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Provision for liabilities and charges | 10 | 5,177 | 4,319 | 6,649 |
+-----------------------------------------+------+-------------+-------------+-----------+
| | | 24,396 | 29,980 | 17,905 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Net assets | | 7,698 | 35,526 | 2,264 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Shareholders' equity | | | | |
+-----------------------------------------+------+-------------+-------------+-----------+
| Ordinary shares | 11 | 29,141 | 29,141 | 29,141 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Share premium account | 11 | 34,708 | 34,708 | 34,708 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Capital redemption reserve | | 500 | 500 | 500 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Translation reserve | | 868 | 1,184 | (21) |
+-----------------------------------------+------+-------------+-------------+-----------+
| Retained earnings | | (57,556) | (30,580) | (62,103) |
+-----------------------------------------+------+-------------+-------------+-----------+
| Equity shareholders' funds | | 7,661 | 34,953 | 2,225 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Minority interests in equity | | 37 | 573 | 39 |
+-----------------------------------------+------+-------------+-------------+-----------+
| Total equity | | 7,698 | 35,526 | 2,264 |
+-----------------------------------------+------+-------------+-------------+-----------+
Consolidated Cash Flow Statement
+----------------------------------------+------+-------------+-------------+-----------+
| | | Half | Half | Year |
| | | year to | year to | to |
| | | 31 Mar | 31 Mar | 30 Sep |
| | | 10 | 09 | 09 |
+----------------------------------------+------+-------------+-------------+-----------+
| | | (Unaudited) | (Unaudited) | (Audited) |
| |Note | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+------+-------------+-------------+-----------+
| Cash flows from operating activities | 12 | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Cash generated from continuing | | | | |
| operating activities prior to the | | 4,919 | 3,903 | 7,449 |
| effect of exceptional items | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Cash effect of exceptional items | | (848) | (784) | (1,688) |
+----------------------------------------+------+-------------+-------------+-----------+
| Cash generated from continuing | | 4,071 | 3,119 | 5,761 |
| operations | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Cash used in discontinued operations | | (854) | (1,152) | (2,614) |
+----------------------------------------+------+-------------+-------------+-----------+
| Cash generated from operations | | 3,217 | 1,967 | 3,147 |
+----------------------------------------+------+-------------+-------------+-----------+
| Finance income received | | 7 | 2 | 33 |
+----------------------------------------+------+-------------+-------------+-----------+
| Finance costs paid | | (420) | (735) | (1,582) |
+----------------------------------------+------+-------------+-------------+-----------+
| Tax received/(paid) | | 23 | (465) | (282) |
+----------------------------------------+------+-------------+-------------+-----------+
| Net cash generated from operating | | 2,827 | 769 | 1,316 |
| activities | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Cash flows from investing activities | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Proceeds from sale of operations | | - | 2,050 | 2,050 |
+----------------------------------------+------+-------------+-------------+-----------+
| Acquisition of subsidiaries - deferred | | (126) | - | - |
| consideration | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Proceeds from sale of property, plant | | - | 1,404 | 4,798 |
| and equipment | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Purchase of property, plant and | | (2,699) | (1,287) | (2,684) |
| equipment | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Purchase of intangible assets | | (99) | (153) | (884) |
+----------------------------------------+------+-------------+-------------+-----------+
| Net cash (used in)/generated from | | (2,924) | 2,014 | 3,280 |
| investing activities | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Cash flows from financing activities | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Net movements in loans | | (2,590) | (4,305) | (6,005) |
+----------------------------------------+------+-------------+-------------+-----------+
| Dividends paid to minority | | (142) | - | (283) |
| shareholders | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Purchase of own shares | | (13) | - | - |
+----------------------------------------+------+-------------+-------------+-----------+
| Net cash used in financing activities | | (2,745) | (4,305) | (6,288) |
+----------------------------------------+------+-------------+-------------+-----------+
| Net decrease in cash, cash equivalents | | (2,842) | (1,522) | (1,692) |
| and bank overdrafts | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
| Cash, cash equivalents and bank overdrafts | (1,090) | 414 | 414 |
| at beginning of the period | | | |
+-----------------------------------------------+-------------+-------------+-----------+
| Effects of exchange rate changes | | (167) | 45 | 188 |
+----------------------------------------+------+-------------+-------------+-----------+
| Cash, cash equivalents and bank | 13 | (4,099) | (1,063) | (1,090) |
| overdrafts at end of the period | | | | |
+----------------------------------------+------+-------------+-------------+-----------+
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Consolidated Statement of Changes in Equity | |
+-------------------------------------------------------------------------------------+----------+
| | | | | Capital | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| | Share | Share | Retained | redemption | Translation | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| | capital | premium | earnings | reserve | reserve | Total |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| At 1 October 2008 | 29,141 | 34,708 | (21,175) | 500 | (1,070) | 42,104 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Profit for the period | | | | | | |
| attributable | | | | | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| to equity shareholders | - | - | 773 | - | - | 773 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Unrealised exchange | | | | | | |
| differences | | | | | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| on overseas investments | - | - | - | - | 2,254 | 2,254 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Movement in respect of | - | - | 86 | - | - | |
| employee share schemes | | | | | | 86 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Actuarial loss recognised | - | - | (14,256) | - | - | |
| in retirement scheme | | | | | | (14,256) |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Movement on deferred tax | | | | | | |
| relating to | | | | | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| retirement benefit | - | - | 3,992 | - | - | 3,992 |
| obligations | | | | | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| At 31 March 2009 | 29,141 | 34,708 | (30,580) | 500 | 1,184 | 34,953 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Loss for the period | | | | | | |
| attributable | | | | | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| to equity shareholders | - | - | (956) | - | - | (956) |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Unrealised exchange | | | | | | |
| differences | | | | | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| on overseas investments | - | - | - | - | (1,205) | (1,205) |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Movement in respect of | - | - | 62 | - | - | |
| employee share schemes | | | | | | 62 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Actuarial loss recognised | - | - | (38,795) | - | - | |
| in retirement scheme | | | | | | (38,795) |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Movement on deferred tax | | | | | | |
| relating to | | | | | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| retirement benefit | - | - | 8,166 | - | - | 8,166 |
| obligations | | | | | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| At 30 September 2009 | 29,141 | 34,708 | (62,103) | 500 | (21) | 2,225 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Profit for the period | - | - | 1,731 | - | - | |
| attributable to equity | | | | | | 1,731 |
| shareholders | | | | | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Unrealised exchange | - | - | - | - | 889 | |
| differences on overseas | | | | | | 889 |
| investments | | | | | | |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Movement in respect of | - | - | 67 | - | - | |
| employee share schemes | | | | | | 67 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| Actuarial gain recognised | - | - | 2,749 | - | - | |
| in retirement scheme | | | | | | 2,749 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
| At 31 March 2010 | 29,141 | 34,708 | (57,556) | 500 | 868 | 7,661 |
+---------------------------+---------+---------+----------+------------+-------------+----------+
Notes to the Interim Financial Statements
1. General information
The company is a limited liability company incorporated and domiciled in the UK.
The address of its registered office is Hampton Park West, Semington Road,
Melksham, Wiltshire, SN12 6NB.
The company has its primary listing on the London Stock Exchange.
This condensed consolidated half-yearly financial information was approved for
issue on 10 May 2010.
These interim financial results do not comprise statutory accounts within the
meaning of Section 434 of the Companies Act 2006. Statutory accounts for the
year ended 30 September 2009 were approved by the Board of Directors on 19
January 2010 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statement under Section 498 of the
Companies Act 2006.
2. Basis of preparation
This condensed consolidated half-yearly financial information for the half-year
ended 31 March 2010 has been prepared in accordance with the Disclosures and
Transparency rules of the Financial Services Authority and with IAS 34, 'Interim
financial reporting' as adopted by the European Union. The half-yearly condensed
consolidated financial report should be read in conjunction with the annual
financial statements for the year ended 30 September 2009, which have been
prepared in accordance with IFRS as adopted by the European Union.
3. Restatement of comparatives
The 31 March 2009 and 30 September 2009 Statement of Comprehensive Income and
Consolidated Cash Flow statement have been restated to reflect the Avon
Engineered Fabrications business as continuing operations.
4. Accounting policies
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 30 September 2009, as described in those
financial statements.
Recent accounting developments
The following standards, amendments and interpretations have been issued by the
International Accounting Standards Board (IASB) or by the International
Financial Reporting Interpretations Committee (IFRIC) but have not yet been
adopted. Subject to endorsement by the European Union, these will be adopted in
future periods. The Group's approach to these is as follows:
(a) Standards, amendments and interpretations effective in 2010
The following standards, amendments and interpretations have been adopted in
preparing the half yearly financial information and will be adopted for the year
ended 30 September 2010:
- Amendments to IFRS 2 Share-based Payment: Vesting Conditions and
Cancellations
- IAS 1 Presentation of Financial Statements (revised 2007)
- IAS 23 Borrowing Costs (revised 2007)
- IFRIC 16 Hedges of Net Investment in Foreign Operations
The following standards, amendments and interpretations to published standards
are mandatory for accounting periods beginning on or after 1 October 2009 but
are not relevant to the Group's operations, or have no significant impact:
- IFRS 1 (revised) First-time Adoption of International Financial Reporting
Standards and IAS 27 (revised) Consolidated and separate Financial Statements -
Cost of an investment in a Subsidiary, Jointly Controlled Entity or Associate
- Amendments to IFRS 7 Financial Instruments: Disclosures - Improving
Disclosures about Financial Instruments
- Amendments to IAS 32 Financial Instruments: Presentation and IAS 1
Presentation of financial Statements - Puttable Financial Instruments and
Obligations Arising on Liquidation
- IFRIC 15 Agreements for the Construction of Real Estate
- Embedded Derivatives - Amendments to IFRIC 9 Reassessment of Embedded
Derivatives and IAS 39 Financial Instruments: Recognition and Measurement
- IFRIC 18 Transfer of Assets from Customers
- IFRS 3 Business Combinations (revised 2008)
- Amendments to IAS 39 - Eligible Hedged Items
- IFRIC 17 Distributions of Non-cash Assets to Owners
- Improvements to IFRSs 2008 - Amendments to IFRS 5 Non-current Assets Held
for Sale and Discontinued Operations
(b) Standards, amendments and interpretations to existing standards that are
not yet effective and have not been adopted early by the Group
The following new standards, amendments to standards and interpretations have
been issued, but are not effective for the financial year beginning 1 October
2009 and have not been adopted early:
- Amendments to IFRS 2 Share-based Payment - Group Cash-settled Share-based
Payment Transactions
- Amendments to IAS 32 Financial Instruments: presentation - Classification
of Rights Issues
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
- Amendments to IFRS 1 First-time adoption of International Financial
Reporting Standards - Limited Exemption from Comparative IFRS 7 Disclosures for
First-time Adopters
- IAS 24 Related Party Disclosures (revised 2009)
- Amendments to IFRIC 14 IAS 19 - The Limit on a Defined Benefit Assets,
Minimum Funding Requirements and their Interaction
- IFRS 9 Financial Instruments
5. Segmental analysis
Due to the differing natures of the products and their markets, Avon Rubber
p.l.c.'s primary reporting segment is by business.The secondary reporting format
comprises the geographical segments by origin.
+---------------------------------+------------+---------+-------------+----------+
| Half year to 31 March 2010 | Protection | | | |
| (Unaudited) | & Defence | | | |
+---------------------------------+ +---------+-------------+----------+
| | | Dairy | Unallocated | Group |
+---------------------------------+------------+---------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+------------+---------+-------------+----------+
| Revenue | 43,302 | 13,217 | | 56,519 |
+---------------------------------+------------+---------+-------------+----------+
| | | | | |
+---------------------------------+------------+---------+-------------+----------+
| Segment result before | 4,892 | 2,234 | (974) | 6,152 |
| depreciation and amortisation | | | | |
+---------------------------------+------------+---------+-------------+----------+
| Depreciation and amortisation | (1,881) | (193) | (18) | (2,092) |
+---------------------------------+------------+---------+-------------+----------+
| Segment result | 3,011 | 2,041 | (992) | 4,060 |
+---------------------------------+------------+---------+-------------+----------+
| Finance income | | | 7 | 7 |
+---------------------------------+------------+---------+-------------+----------+
| Finance costs | | | (540) | (540) |
+---------------------------------+------------+---------+-------------+----------+
| Other finance expense | | | (595) | (595) |
+---------------------------------+------------+---------+-------------+----------+
| Profit/(loss) before taxation | 3,011 | 2,041 | (2,120) | 2,932 |
+---------------------------------+------------+---------+-------------+----------+
| Taxation | | | (1,201) | (1,201) |
+---------------------------------+------------+---------+-------------+----------+
| Profit/(loss) for the period | 3,011 | 2,041 | (3,321) | 1,731 |
+---------------------------------+------------+---------+-------------+----------+
| |
+---------------------------------------------------------------------------------+
| Half year to 31 March 2009 | Protection | | | |
| (Unaudited) | & Defence | | | |
+---------------------------------+ +---------+-------------+----------+
| | | Dairy | Unallocated | Group |
+---------------------------------+------------+---------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+------------+---------+-------------+----------+
| Revenue | 35,703 | 12,709 | | 48,412 |
+---------------------------------+------------+---------+-------------+----------+
| | | | | |
+---------------------------------+------------+---------+-------------+----------+
| Segment result before | 3,350 | 1,473 | (964) | 3,859 |
| depreciation and amortisation | | | | |
+---------------------------------+------------+---------+-------------+----------+
| Depreciation and amortisation | (1,358) | (210) | (161) | (1,729) |
+---------------------------------+------------+---------+-------------+----------+
| Segment result | 1,992 | 1,263 | (1,125) | 2,130 |
+---------------------------------+------------+---------+-------------+----------+
| Finance income | | | 2 | 2 |
+---------------------------------+------------+---------+-------------+----------+
| Finance costs | | | (820) | (820) |
+---------------------------------+------------+---------+-------------+----------+
| Other finance income | | | 86 | 86 |
+---------------------------------+------------+---------+-------------+----------+
| Profit/(loss) before taxation | 1,992 | 1,263 | (1,857) | 1,398 |
+---------------------------------+------------+---------+-------------+----------+
| Taxation | | | (615) | (615) |
+---------------------------------+------------+---------+-------------+----------+
| Profit/(loss) for the period | 1,992 | 1,263 | (2,472) | 783 |
+---------------------------------+------------+---------+-------------+----------+
| |
+---------------------------------------------------------------------------------+
| Year to 30 September 2009 | Protection | | | |
| (Audited) | & Defence | | | |
+---------------------------------+ +---------+-------------+----------+
| | | Dairy | Unallocated | Group |
+---------------------------------+------------+---------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+------------+---------+-------------+----------+
| Revenue | 76,107 | 24,793 | | 100,900 |
+---------------------------------+------------+---------+-------------+----------+
| | | | | |
+---------------------------------+------------+---------+-------------+----------+
| Segment result before | 7,939 | 3,490 | (1,769) | 9,660 |
| depreciation, amortisation and | | | | |
| exceptional items | | | | |
+---------------------------------+------------+---------+-------------+----------+
| Depreciation and amortisation | (3,490) | (470) | (191) | (4,151) |
+---------------------------------+------------+---------+-------------+----------+
| Segment result before | 4,449 | 3,020 | (1,960) | 5,509 |
| exceptional items | | | | |
+---------------------------------+------------+---------+-------------+----------+
| Exceptional items | - | (2,535) | - | (2,535) |
+---------------------------------+------------+---------+-------------+----------+
| Segment result after | 4,449 | 485 | (1,960) | 2,974 |
| exceptional items | | | | |
+---------------------------------+------------+---------+-------------+----------+
| Finance income | | | 33 | 33 |
+---------------------------------+------------+---------+-------------+----------+
| Finance costs | | | (1,539) | (1,539) |
+---------------------------------+------------+---------+-------------+----------+
| Other finance income | | | 394 | 394 |
+---------------------------------+------------+---------+-------------+----------+
| Profit/(loss) before taxation | 4,449 | 485 | (3,072) | 1,862 |
+---------------------------------+------------+---------+-------------+----------+
| Taxation | | | (2,004) | (2,004) |
+---------------------------------+------------+---------+-------------+----------+
| Profit/(loss) for the year | 4,449 | 485 | (5,076) | (142) |
+---------------------------------+------------+---------+-------------+----------+
+---------------------------------------+-------------+-------------+-----------+
| Revenue by origin | Half | Half | Year to |
| | year to | year to | 30 Sep |
| | 31 Mar | 31 Mar | 09 |
| | 10 | 09 | |
+---------------------------------------+-------------+-------------+-----------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------+-------------+-------------+-----------+
| Europe | 7,981 | 5,597 | 12,495 |
+---------------------------------------+-------------+-------------+-----------+
| North America | 48,538 | 42,815 | 88,405 |
+---------------------------------------+-------------+-------------+-----------+
| | 56,519 | 48,412 | 100,900 |
+---------------------------------------+-------------+-------------+-----------+
6. Finance income and costs
+---------------------------------------+-------------+-------------+-----------+
| | Half | Half | Year to |
| | year to | year to | 30 Sep |
| | 31 Mar | 31 Mar | 09 |
| | 10 | 09 | |
+---------------------------------------+-------------+-------------+-----------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------+-------------+-------------+-----------+
| Interest payable on bank loans and | (493) | (814) | (1,433) |
| overdrafts | | | |
+---------------------------------------+-------------+-------------+-----------+
| Other finance costs | (47) | (6) | (106) |
+---------------------------------------+-------------+-------------+-----------+
| Total finance costs | (540) | (820) | (1,539) |
+---------------------------------------+-------------+-------------+-----------+
| Finance income | 7 | 2 | 33 |
+---------------------------------------+-------------+-------------+-----------+
| | (533) | (818) | (1,506) |
+---------------------------------------+-------------+-------------+-----------+
Other finance (expense)/income
+---------------------------------------+-------------+-------------+-----------+
| | Half | Half | Year to |
| | year to | year to | 30 Sep |
| | 31 Mar | 31 Mar | 09 |
| | 10 | 09 | |
+---------------------------------------+-------------+-------------+-----------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------+-------------+-------------+-----------+
| Interest cost: UK defined benefit | (7,209) | (7,337) | (14,592) |
| pension scheme | | | |
+---------------------------------------+-------------+-------------+-----------+
| Expected return on plan assets: UK | | | |
| defined benefit pension scheme | 6,849 | 7,494 | 15,020 |
+---------------------------------------+-------------+-------------+-----------+
| Other finance cost: USA post | (5) | (71) | (34) |
| retirement scheme | | | |
+---------------------------------------+-------------+-------------+-----------+
| Provisions: Unwinding of discount | (230) | - | - |
+---------------------------------------+-------------+-------------+-----------+
| | (595) | 86 | 394 |
+---------------------------------------+-------------+-------------+-----------+
7. Taxation
The split of the tax charge between UK and overseas is as follows:
+---------------------------------------+-------------+-------------+-----------+
| | Half | Half | Year to |
| | year to | year to | 30 Sep |
| | 31 Mar | 31 Mar | 09 |
| | 10 | 09 | |
+---------------------------------------+-------------+-------------+-----------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------+-------------+-------------+-----------+
| United Kingdom | - | - | - |
+---------------------------------------+-------------+-------------+-----------+
| Overseas | 1,201 | 615 | 2,004 |
+---------------------------------------+-------------+-------------+-----------+
| | 1,201 | 615 | 2,004 |
+---------------------------------------+-------------+-------------+-----------+
The effective tax rate for the period is 41% (2009: 44%). The adjusted effective
tax rate is 34% (2009: 47%), defined as the tax charge divided by the profit
before tax, excluding the charge/credit relating to other finance
expense/income.
8. Dividends
The Directors are proposing that no interim dividend be paid in respect of the
half year ending 31 March 2010.
9. Earnings per share
Basic earnings per share is based on a profit attributable to ordinary
shareholders of GBP1,731,000 (2009: GBP773,000) and 28,467,000 (2009:
28,474,000) ordinary shares being the weighted average of the shares in issue
during the period.
The Company has 1,958,942 (6.7%) dilutive potential ordinary shares in respect
of the Performance Share Plan.
10. Provisions for liabilities and charges
+-------------------------------+------------+------------+------------+---------+
| | Other | Automotive | European | |
| | provisions | disposal | Dairy | Total |
| | GBP'000 | GBP'000 | relocation | GBP'000 |
| | | | GBP000 | |
+-------------------------------+------------+------------+------------+---------+
| Balance at 30 September 2009 | 1,029 | 2,190 | 3,430 | 6,649 |
+-------------------------------+------------+------------+------------+---------+
| Payments in the period | (359) | (495) | (848) | (1,702) |
+-------------------------------+------------+------------+------------+---------+
| Unwinding of discount | - | - | 230 | 230 |
+-------------------------------+------------+------------+------------+---------+
| At 31 March 2010 | 670 | 1,695 | 2,812 | 5,177 |
+-------------------------------+------------+------------+------------+---------+
11. Share capital
+------------------------------------------+-------------+----------+---------+---------+
| | Number | Ordinary | Share | |
| | of | shares | premium | Total |
| | shares | GBP'000 | GBP'000 | GBP'000 |
| | (thousands) | | | |
+------------------------------------------+-------------+----------+---------+---------+
| Balance as at 1 October 2008 and 31 | 29,141 | 29,141 | 34,708 | 63,849 |
| March 2010 | | | | |
+------------------------------------------+-------------+----------+---------+---------+
12. Cash generated from operations
+-------------------------------------------+-------------+-------------+-----------+
| | Half | Half | Year to |
| | year to | year to | 30 Sep |
| | 31 Mar | 31 Mar | 09 |
| | 10 | 09 | |
+-------------------------------------------+-------------+-------------+-----------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------------+-------------+-------------+-----------+
| Continuing operations | | | |
+-------------------------------------------+-------------+-------------+-----------+
| Profit/(loss) for the financial period | 1,731 | 783 | (142) |
+-------------------------------------------+-------------+-------------+-----------+
| Adjustments for: | | | |
+-------------------------------------------+-------------+-------------+-----------+
| Tax | 1,201 | 615 | 2,004 |
+-------------------------------------------+-------------+-------------+-----------+
| Depreciation | 1,214 | 1,012 | 2,366 |
+-------------------------------------------+-------------+-------------+-----------+
| Amortisation of intangibles | 878 | 717 | 1,785 |
+-------------------------------------------+-------------+-------------+-----------+
| Net finance expense | 533 | 818 | 1,506 |
+-------------------------------------------+-------------+-------------+-----------+
| Other finance expense/(income) | 595 | (86) | (394) |
+-------------------------------------------+-------------+-------------+-----------+
| Loss/(profit) on disposal of property, | 15 | 15 | (2,088) |
| plant and equipment | | | |
+-------------------------------------------+-------------+-------------+-----------+
| Loss on disposal of intangibles | - | - | 20 |
+-------------------------------------------+-------------+-------------+-----------+
| Movements in working capital and | (2,102) | (841) | 556 |
| provisions | | | |
+-------------------------------------------+-------------+-------------+-----------+
| Other movements | 6 | 86 | 148 |
+-------------------------------------------+-------------+-------------+-----------+
| Cash generated from continuing operations | 4,071 | 3,119 | 5,761 |
+-------------------------------------------+-------------+-------------+-----------+
| Analysed as: | | | |
+-------------------------------------------+-------------+-------------+-----------+
| Cash generated from continuing activities | | | |
| prior to the effect of exceptional | 4,919 | 3,903 | 7,449 |
| operating items | | | |
+-------------------------------------------+-------------+-------------+-----------+
| Cash effect of exceptional operating | (848) | (784) | (1,688) |
| items | | | |
+-------------------------------------------+-------------+-------------+-----------+
| Discontinued operations | | | |
+-------------------------------------------+-------------+-------------+-----------+
| Movements in working capital and | (854) | (1,152) | (2,614) |
| provisions | | | |
+-------------------------------------------+-------------+-------------+-----------+
| Cash used in discontinued operations | (854) | (1,152) | (2,614) |
+-------------------------------------------+-------------+-------------+-----------+
| Cash generated from operations | 3,217 | 1,967 | 3,147 |
+-------------------------------------------+-------------+-------------+-----------+
13. Analysis of net debt
+---------------------------------------+----------+---------+-----------+----------+
| | As at | | Exchange | As at |
| | 30 Sep | Cash | movements | 31 |
| | 09 | flow | GBP'000 | Mar 10 |
| | GBP'000 | GBP'000 | | GBP'000 |
+---------------------------------------+----------+---------+-----------+----------+
| Cash at bank and in hand | 1,041 | (302) | 1 | 740 |
+---------------------------------------+----------+---------+-----------+----------+
| Cash included in assets held for sale | 9 | (9) | - | - |
+---------------------------------------+----------+---------+-----------+----------+
| Overdrafts | (2,140) | (2,531) | (168) | (4,839) |
+---------------------------------------+----------+---------+-----------+----------+
| Net cash and cash equivalents | (1,090) | (2,842) | (167) | (4,099) |
+---------------------------------------+----------+---------+-----------+----------+
| Debt due within 1 year | (12,557) | 12,557 | - | - |
+---------------------------------------+----------+---------+-----------+----------+
| Debt due in more than 1 year | - | (9,967) | (357) | (10,324) |
+---------------------------------------+----------+---------+-----------+----------+
| | (13,647) | (252) | (524) | (14,423) |
+---------------------------------------+----------+---------+-----------+----------+
+------------------------------------------------+----------+----------+---------+
| Borrowing facilities | Total | | |
| | facility | Utilised | Undrawn |
+------------------------------------------------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------------+----------+----------+---------+
| United Kingdom | 16,931 | 10,324 | 6,607 |
+------------------------------------------------+----------+----------+---------+
| North America | 5,816 | 4,839 | 977 |
+------------------------------------------------+----------+----------+---------+
| Utilised in respect of guarantees | 727 | 727 | - |
+------------------------------------------------+----------+----------+---------+
| | 23,474 | 15,890 | 7,584 |
+------------------------------------------------+----------+----------+---------+
Of the facilities above, GBP5m and $18.2m are committed to 30 June 2011 and $10m
is committed to 31 December 2010. These facilities include financial covenants
which are measured on a quarterly basis, which were complied with during the
period.
14. Exchange rates
The following significant exchange rates applied during the period.
+-------------+----------+---------+---------+---------+----------+---------+
| | Average | Closing | Average | Closing | Average | Closing |
| | rate | rate | rate | rate | rate | rate |
| | H1 2010 | H1 2010 | H1 | H1 | FY 2009 | FY 2009 |
| | | | 2009 | 2009 | | |
+-------------+----------+---------+---------+---------+----------+---------+
| US Dollar | 1.578 | 1.528 | 1.493 | 1.432 | 1.538 | 1.589 |
+-------------+----------+---------+---------+---------+----------+---------+
| Euro | 1.117 | 1.129 | 1.152 | 1.077 | 1.146 | 1.088 |
+-------------+----------+---------+---------+---------+----------+---------+
15. Seasonality
Seasonal fluctuations have no material impact on the company's revenues.
16. Principal risks and uncertainties
The principal risks and uncertainties impacting the Group were detailed on page
20 of the 2009 Annual Report & Accounts and remain unchanged at 31 March 2010.
17. Related party transactions
There were no related party transactions during the period or outstanding at the
end of the period.
18. Shareholder information
The unaudited interim results for the six months ended 31 March 2010 are
available on the Company's website at: www.avon-rubber.com and copies of this
announcement are available for download at http://interim.avon-rubber.com .
Further enquiries should be directed to the Company's registered office at
Hampton Park West, Semington Road, Melksham, Wiltshire, SN12 6NB, England.
Email: enquiries@avon-rubber.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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