- 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.
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.
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.
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.