The Avon Rubber Board is recommending a final dividend of 18.06p per share (2019: 13.89p) which together with the 9.02p per share interim dividend gives a total dividend of 27.08p (2019: 20.83p), up 30% on last year. The final dividend will be paid on 12 March 2021 to shareholders on the register at 12 February 2021 with an ex-dividend date of 11 February 2021.
Our policy is to maintain a progressive dividend policy balancing dividend increases with the rates of adjusted earnings per share growth achieved, taking into account potential acquisition spend and the GroupÕs financing position. Over recent years, we have grown the dividend per share by 30% per annum and we expect to continue to grow dividends ahead of earnings over the medium-term. Our policy is to maintain dividend cover (the ratio of dividend per share to adjusted earnings per share) above two times. This year dividend cover was 2.8 times (2019: 4.4 times). Once dividend cover approaches two times we intend to increase dividends in line with the growth in adjusted earnings per share.
Financial highlights include:
- Strong financial delivery and position:
o Revenue growth of 30.8%, comprising 0.1% organic constant currency growth, with a 31.7% contribution from the Helmets & Armor acquisition and a 1.0% currency headwind
o Adjusted EBITDA margin of 22.9%, up 140bps on an organic constant currency basis, with a strong uplift in respiratory protection driven by improved product mix
o Organic constant currency adjusted operating profit growth of 8.9%
o Adjusted operating profit up 33.6% reflecting the benefits of strong organic trading performance and the Helmets & Armor acquisition and adjusted earnings per share up 13.8%
o Reported operating profit and basic earnings per share includes £6.5m of amortisation of acquired intangibles and £17.8m of exceptional costs related to the acquisition of Helmets & Armor and Team Wendy
o Reported basic earnings per share of 447.4p reflects the results of milkrite | InterPuls and gain arising from the divestment
- Strong cash conversion and balance sheet
o Cash conversion of 84.9%, with organic cash conversion excluding Helmets & Armor of 123.3%
o Net cash of £93.2m, following completion of the Helmets & Armor acquisition and divestment of milkrite | InterPuls, includes offsetting lease liabilities of £22.8m
o New $200m medium term bank facility provides financing flexibility and capacity for further strategic investment