Avon Rubber (AVON), which makes rubber products from gas masks to milking tubes for the dairy industry, expects profits for the year to end September to hit City forecasts at around £10.8m pre-tax after trading picked up in the second half.
The main concern was a slower-than-expected start to a contract for gas-mask filters, which the company warned about in the first half. But deliveries have now picked up and the contract should provide reliable revenues because strong sales of masks are leading to repeat sales of filters, hence the 'strong' order book for 2013 in the Protection and Defence business.
The company is also investing in its dairy business in a bid to expand its product range and international reach. This should begin to show results late next year and into 2014, when new products are expected to emerge from the Project Fusion investment.
