The Avon Rubber Board has declared an interim dividend of 14.3c per ordinary share, an increase of 30% on the 2020 interim dividend reflecting their continued commitment to a progressive dividend policy. This will be paid on 3 September 2021 to shareholders on the register on 6 August 2021. Following the change in reporting currency, dividends for the 2021 financial year and beyond will be set in U.S. dollars and converted into pounds sterling for payment at the prevailing exchange rate immediately prior to payment.
Other financial highlights include:
· Another half year of positive financial performance
o Revenue growth of 41.0%, 17.6% excluding Team Wendy contribution of $20.5m
o Adjusted EBITDA margin of 19.7%, down 120bps, reflecting the expected weighting of revenues to the second half and even spread of overheads across the year. Team Wendy contributed EBITDA of $6.6m at a margin of 32.2%
o Adjusted operating profit up 25.0% reflecting the benefits of strong respiratory trading performance and the $6.1m contribution from Team Wendy. Operating profit excluding team Wendy impacted by weighting of revenues and the even spread of overheads.
o Adjusted earnings per share up 28.0%
· Cash conversion of 58.5% reflects the expected weighting of revenues to the second half and increased inventory holdings to mitigate supply chain risks and support second half deliveries
· Strong financial position maintained
o Net debt excluding finance leases of $12.9m represents leverage of less than 0.2 x consensus EBITDA for the full year. Including lease liabilities of $31.2m, reported net debt was $44.1m
o Strong liquidity with $200m Revolving Credit Facility largely undrawn, with $11.0m utilised at the half year, and fully compliant with all debt facility covenants with significant headroom