Strictly embargoed until 07:00 Friday 9 September 2016

AVON RUBBER p.l.c. ("Avon", the "Group" or the "Company")

Trading update for the 5 months ended 31 August 2016

The Board expects 2016 full year Profit before Tax to be in line with current market expectations.

Protection & Defence

In Protection & Defence, we are pleased to announce that our unique CBRN / CO Escape Hood has received NIOSH approval and we have received an order worth $9m from a major US city police department for this new product, the majority of which will be delivered this financial year.

Mask systems production has, as planned, been focused on fulfilling deliveries to the US Department of Defense under our 10 year sole source contract for the JSGPM M50 mask systems. We continue to see a number of higher margin export opportunities for military masks although, as always, the timing of order receipt is unpredictable; these opportunities remain live and are being progressed, albeit more slowly than previously expected, with the result that we now expect to receive and deliver these orders in our 2017 financial year.

Dairy

General market conditions for dairy farmers have been weak for the majority of the period, as milk prices have been low. This cyclical market dynamic has, as expected, reduced demand for our consumable products as farmers overuse product to extend its life. This has been more noticeable in the InterPuls business where the nature of the product is more capital / semi-consumable than consumable. Milk prices in our major markets do, however, appear to have bottomed-out and have started to improve in the final quarter.

The programme for the roll out of InterPuls products through existing Milkrite distribution in the US has commenced with the first revenues seen in the final quarter of the financial year. This, together with our expectation that the recent improvement in milk price will continue and positively impact demand for our products, leaves the Board confident of the ability of the Dairy business to make progress in 2017.

Commenting, Rob Rennie, Chief Executive Officer said; "The 2016 result demonstrates the robustness of our business and we exit the year as a stronger business looking forward to the many opportunities available to us in 2017."

Full year results for the year ended 30 September 2016 will be announced on 16 November 2016.

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Note to editors: The Group has transformed itself over recent years into an innovative design and engineering group specialising in two core markets, Protection & Defence and Dairy. With a strong emphasis on research and development we design, test and manufacture specialist products from a number of sites in the US and Europe, serving markets around the world. We achieve this through nurturing the talent and aspirations of our employees to realise their highest potential.

Avon Protection is the recognised global market leader in advanced Chemical, Biological, Radiological and Nuclear (CBRN) respiratory protection systems technology for the world's military, homeland security, first responder, fire and industrial markets. With an unrivalled pedigree in mask design dating back to the 1920's, Avon Protection's advanced products are the first choice for Personal Protective Equipment (PPE) users worldwide and are placed at the heart of many international defence and tactical PPE deployment strategies. Our expanding global customer base now includes military forces, civil and first line defence troops, emergency service teams and industrial, marine, mineral and oil extraction site personnel. All put their trust in Avon's advanced respiratory solutions to shield them from every possible threat whether land, air or sea based.

Our world-leading Dairy supplies business and its Milkrite InterPuls brand have a global market presence. With a long history of manufacturing liners and tubing for the dairy industry, we have become the leading innovator and designer for products and services right at the heart of milking. The acquisition of InterPuls in 2015, a specialist in electromechanical milking components, such as pulsators, milk meters, automatic cluster removers, milking clusters, washing systems, vacuum pumps, bucket milkers and pipeline system components has added significantly to our product range, making us the complete milking point solution provider.  Working with the leading scientists and health specialists in the global dairy industry we continue to invest in technology to further improve the milking process and animal welfare. Our products provide exceptional results for both the animal and the milker, making the milk extraction process more efficient. As our market share and milking experience continue to grow, so does our global presence.

For further information please visit the Group's website www.avon-rubber.com