MELKSHAM, England–U.K. rubber products company Avon Rubber P.L.C. has reported strong first half results, despite COVID-19 economic slowdown.
Earnings (adjusted EBITDA) grew 51 percent to $25.9 million for the six months to end of March on 29 percent higher sales of $119.08 million, Avon reported May 19.
The company linked the growth to "strong contributions" from both its segments: Avon Protection and dairy equipment segment Milkrite.
These included a long-term body armor contracts worth up to $754 million with the U.S. Department of Defense, CEO Paul McDonald said.
In addition, the company is in "advanced stages" of discussions with DOD for the M50 mask system sustainment contract and is "actively pursuing" other opportunities with military customers from the rest of the world, the CEO added.
Commenting on the impact of COVID-19 pandemic on the business, McDonald said both segments continued to operate with "only minor disruption."
Supply chains, he said, "remain robust" and the company has continued to deliver "high level of service to customers."
"Both businesses remain robust and the group has good liquidity, a strong balance sheet and excellent medium-term revenue visibility," McDonald said, while confirming the group's 2020 financial outlook.