Avon Rubber's (LON:AVON) H118 report demonstrates the strength of the group’s new strategy in action. Success is evident in the enhanced product portfolio and order progression is building visibility and supporting medium-term growth. Given the group’s exposure to the US, the FX headwind was visible in H118. Management maintained its guidance for FY18 underpinned by end market opportunities and new product deliveries.
H118 results
H118 orders of £88.3m (H117 £90.8m) were 5% ahead on a constant currency basis while reported H118 revenue of £77.7m (H117 £78.9m) was 5.9% on the same basis. This gives a book to bill of 1.14x. Reported PBT was £9.4m (H117 £8.9m), while adjusted EPS of 32.8p (H117 28.6p) represented a 33.7% lift at constant currency. The interim dividend of 5.34p (H117 4.11p) indicated a 30% uplift. Cash generation remains good with 123.9% EBITDA conversion and, including the £6.6m proceeds from the Avon Engineered Fabrications (AEF) divestment, the net cash position increased to £39.1m (FY17 £24.7m).
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