Avon Protection’s turnaround takes shape despite profit slump
Avon Protection has made “excellent strategic progress” this year following several “major challenges,” including the sale of its loss-making armour business.
The company, which manufactures respiratory and head protection systems (helmets), today reported adjusted profit before tax for the year to 30 September fell 37.5 per cent in constant currency to $14m (£11.7m) as revenue dropped 7.5 per cent to $244m (£195m).
The group booked $258.7m (£207m) of new orders in the period, leaving it with a closing order book of $135.8m (£109m).
The company, which has been hit by manufacturing issues and write downs at its now shuttered armour division, said it has now put past issues behind it and is looking forward to the future.
Avon said it will see an improvement in operating performance in the second half of its 2024 financial year as its transformation plan starts to yield results.
Debt is also expected to fall further, from 1.9 times earnings before interest, tax, depreciation and amortisation (Ebitda) as reported today, and compared to 2.6 times Ebitda at the end of the first half of Avon Protection’s 2023 financial year.
Chief executive Jos Sclater said: “Avon has an exciting future and is well positioned to become the largest supplier of ballistic helmets to the US Department of Defense, complementing our existing position as the leading provider of respiratory products to the DOD and other NATO countries.”
Following the results, the stock added two per cent in early trading.