Sale of UK Mixing Facility

    RNS Number : 8179H
  Avon Rubber PLC
  10 November 2008
   

    10 November 2008

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

    SALE OF UK MIXING FACILITY


    In January we announced that we were commencing the closure of our UK mixing facility, a process which we were pursuing at the time of
the announcement of the interim results in May. 

    We are now pleased to announce that the Group has completed the sale of certain of its mixing facility assets to ATR Compounding Limited
for a consideration of £2.05 million, payable in cash. The proceeds will be used to reduce current borrowings.

    The discontinued mixing business incurred an operating loss of £1.1 million in the year to 30 September 2007 on revenues of £7.0
million. The net book value of the assets disposed of at 31 March 2008 was £2.9 million.

    Commenting, Peter Slabbert, Chief Executive said: 'Our decision to close the facility back in January followed a prolonged period during
which the mixing business incurred considerable losses. I am delighted that through this process we have now managed to eliminate those
losses and realise value for this asset.'


    
    For further enquiries please contact: 
    Avon Rubber p.l.c:
    Peter Slabbert, Chief Executive                                                    01225 896830
    Fiona Stewart, Corporate Communications Executive                01225 896871
    Weber Shandwick Financial:
    Nick Oborne                                                                                  020 7067 0700
    Clare Perks                                                                                   020 7067 0700

    NOTES TO EDITORS:
    Avon Rubber p.l.c. is an international polymer engineering group adding value through material, manufacturing and industry sector
expertise.  For further information please visit the Group's website www.avon-rubber.com 

This information is provided by RNS
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