Avon Rubber shares fall 10% as CFO announces retirement

Follow us on Google News:
More on:
 Avon Rubber shares fall 10% as CFO announces retirement
Image source: Peshkova,Shutterstock

Summary

  • Avon Rubber shares plunged more than 10 per cent on Tuesday
  • CFO Nick Keveth has expressed his intention to retire
  • company posted a revenue growth of 41 per cent in six months ending 31 March 2021

Shares of Avon Rubber Plc (LON: AVON), the Wiltshire-headquartered defence equipment manufacturer, plunged more than 10 per cent in the late afternoon dealings on Tuesday, 25 May, after the company announced the retirement of its CFO. The stock tanked sharply in the opening deals with the share prices registering a loss of a little more than 5 per cent.

Chief Financial Officer Nick Keveth has expressed his intention to retire for “personal reasons”. Keveth will continue to serve until March of 2022 as the board believes this would enable him to handover the duties to the successor while overseeing the present financial year that is set to end on 30 September 2021.

Also Read | 2 Retail Stocks to Look at As UK Shoppers Return to Supermarkets Post Reopening

The board of directors have already initiated a successor planning process, Avon Rubber said in a regulatory filing. Further announcement with regard to the future CFO will be made after the completion of the selection process, it added.

Following the development, the shares of Avon Rubber continued to extend the losses even after the company reported a revenue growth of 41 per cent in the six-month period ending 31 March 2021.

Also Read | FTSE 100 treads water as second-highest April borrowing jolts investors’ confidence

According to the data available with the London Stock Exchange, the stock of Avon Rubber collapsed as much as 10.40 per cent to a two-month low of GBX 2,928 from the previous close of 3,268 apiece. The selling pressure apparently increased in the late trading session with the stock making a fresh intraday low in the last few minutes.

Avon Rubber (25 May)

Image Source: REFINITIV

In wee hours of trading, the stock briefly touched an intraday peak of 3,284.09. Finally it ended 9.91 per cent lower at GBX 2,944. Approximately 147,000 shares exchanged hands on the counters translating into a total traded turnover of more than £1.97 million.

In the six-month period ended on 31 March 2021, the company’s revenue jumped 41 per cent to $122 million as compared to a total earnings of $86.5 million. Of the total revenue, the company spent 8.6 per cent, for research and development purposes.

Also Read | Furniture Store Made.Com Set for A £100 Million London Listing

Furthermore, the board of the company has declared an interim dividend of 14.3 cents per ordinary share. The said dividend will be distributed on 3 September to all the shareholders on the register as on 6 August 2021.

The dividends for FY21 and afterwards will be paid in US dollars due to the change in the reporting currency. The dividends will be then converted into pound sterling, immediately before the payment, at the prevailing exchange rate.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Featured Articles