Profits of Avon Rubber Group (HQ: Bath Road, GB-Melksham SN12 8AA) fell marginally to £ 4.887m from £ 5.009m, for the first half-year (ending 2 April 1994), after deducting an exceptional loss of £ 700,000 from sale of a subsidiary company and absorbing over £ 600,000 of non-recurring costs which will boost medium/long-term earnings. A number of encouraging trends were noted during the first half.

Avon-Clevite has accelerated strongly, Avon-S&H has developed well since moving to S Wales and Avon-Rubena, based in the Czech Republic, has performed strongly since its purchase in October 1993. Cadillac Automotive had a good first half. Automotive Components operations, both in Europe and USA, considerably improved turnover and profitability: sales were up 24% to £ 60m and operating profit more than doubled to £ 3.8m. Cadillac Automotive recorded $ 51m sales, 20% up and 40% profit improvemnet to $ 4.5m.

European operations gained from a small profit at Avon-Clevite, against a loss of £ 950,000 in the previous period. £ 2.1m has been invested in continued profitable expansion of European businesses, with continuing focus on technical excellence: low-cost manufacture and strong design and technological support will continue to gain market-share, comments Avon.

Technical Products sales were down 9.2% and profit 21.8% down, at £ 2.3m: there was also lower turnover and profit in the defence portfolio. Cadillac Technical Products continued its expansion and a recently announced agreement with Fukuyama Rubber where Spenser Moulton will become the sole licensed European manufacturer of rubber crawler track is of significance.

READER SERVICE: Annual Report and Accounts 1993, Avon Rubber plc: PIE-No. 36459 – Company profile brochure "Avon – A world force in polymer engineering": PIE-No. 36460.