Avon Rubber - Good progress in Q120

Avon’s Q1 trading update, released to coincide with the AGM, indicates that expected positive momentum into FY20 from FY19 has continued through Q120. The news is particularly positive for milkrite | InterPuls, which had a very weak Q119. Double-digit increases in order intake in both divisions suggest H120 should see a significant improvement, notwithstanding the withdrawal from the Fire self-contained breathing apparatus (SCBA) market. The initial consolidation of the Helmets and Armor activity should also bolster performance, although there will be integration charges. We maintain our forecasts and are encouraged by the progress being displayed in the continuing activities.