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The Melksham-based business has posted revenue of £106.6m for the year to 30 September 2012 – down slightly on £107.6m for the previous year.
But pre-tax profit has increased from £10.2m in 2011 to £11m.
The company has two divisions – protection and defence and dairy. Avon Rubber said its protection and defence division has been hit by lower filter sales to the US Department of Defense (DoD) but added its dairy businesses has continued to grow because of growth from its own brand, Milkrite.
The business added that budget funding for its ten-year sole source respirator programme with the DoD has been “largely unaffected” by the economic climate and said it expects spend on personal protective equipment for the warfighter to “remain stable”.
Avon Rubber said growth outside of its core DoD customer base has also been strong and during the year it received its largest ever single order from the Middle East worth £14.7m. It expects revenue from foreign military customers to continue to grow over the medium term.
The business said it is “pleasing” that its financial measures are moving in the right direction and added that it started to invest in new products, technologies, systems and people in 2012.
Chief executive Peter Slabbert said: “We have continued our successful track record of growing profits, generating cash and reducing our debt and believe that our investment in industry leading technologies in both protection and defence and dairy will deliver future revenue growth and higher margins.”
Earlier this year, the business said it has entered its new financial year with a strong order book and said it is expanding global reach in its dairy division to boost its market share.