Questor share tip: Avon Rubber shares have further to bounce The defence market is subdued at the moment, but the medium-term prospects for this business is sound as threats from unconventional warfare and terrorism increase globally. Over the past year, Avon won its largest ever single order from the Middle East, worth £14.7m. The bulk of these revenues should boost its 2013 and 2014 financial years. "We expect the proportion of revenues from these sources to continue to grow over the medium term," Avon said. Its dairy business produces rubber products used in milking cows. The global food industry is growing as the world population soars and gets richer. Avon is a major innovator in the field. Questor is particularly pleased with the appointment of Richard Wood as a non-executive director this week. Mr Wood is a former chief executive of animal genetics company Genus, which regular readers will know as a particular favourite of this column. He will bring invaluable knowledge of the global dairy industry, but particularly relating to China. This offers a great growth opportunity for Avon. In the year to September, revenues fell 1pc to £106m, but margins rose and boosted pre-tax profits by 7pc to £11m. The full-year dividend was increased by 20pc to 3.6p with the final payment of 2.4p being made on March 15 next year. The prospective yield, however, is just 1.3pc this year, rising to 1.6pc. The shares are up 16pc since their recommendation a year ago and, trading on a current year multiple of 11 times, remain a buy.