Avon Rubber has given a reassuring year end trading update guiding to FY16 PBT in line with market expectations. This was achieved despite soft conditions in Dairy and an absence of export orders for military masks in the year, but was helped by a recent large $9m order for the group’s newly approved escape hood product for a major US city police department. Export opportunities for Avon’s military masks remain live and are now expected to benefit FY17. Meanwhile prospects for Dairy appear to be strengthening again, with recently improving milk prices likely to positively impact demand in the year ahead. We remain positive on Avon’s portfolio and strategy, with a potentially strong year in prospect for FY17. We reiterate our Buy recommendation.