REG - Avon Protection PLC - AGM Trading Update

Avon ProtectionAnnouncement

26/01/2024 07:00

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RNS Number : 9819A  Avon Protection PLC  26 January 2024

 26 January 2024

Avon Protection plc

("Avon" or "the Group")

AGM Trading Update - Continued strategic and operational progress

 

Avon Protection plc is pleased to announce a trading update for the first
quarter of its 2024 financial year ("Q1"), ahead of its Annual General Meeting
today.

 

Trading update

Order intake for the first quarter was 36% higher than the prior year,
reflecting strong demand for helmets and rebreathers, following the recently
announced contract from the German Navy, partially offset by a modest decline
in respirator orders. The order book was 21% higher than the prior year.
Year-on-year revenue growth of 27% was in line with our expectations,
reflecting the continued successful delivery of NG IHPS helmets to the U.S.
DOD and robust demand for pads and commercial helmets.

 

As expected, cash conversion was very strong reflecting the unwind of the
elevated FY23 year-end receivables balance following the high volume of
deliveries in the final quarter of FY23.

 

Following the successful First Article Testing process on the ACH GEN II
helmet, work is now ongoing to ramp up production ahead of product deliveries
in the second half.

Continued strategic progress

Our focus on operational excellence and continuous improvement is now starting
to deliver the expected scrap reduction benefits and recent actions taken in
support of functional excellence will start to deliver benefits in H2 2024, in
line with expectations.

Our transformation programme is progressing in line with our plan.  In
December 2023 we informed employees about our plan to close our Irvine,
California facility by Summer 2025 as part of our site optimisation programme.
Benefits from the consolidation of the California production into our other
Head Protection sites will begin in FY26 and will significantly improve
competitiveness and financial performance over the medium term.

FY24 outlook unchanged

The trading performance in the first quarter, and the progress made to date on
transformation, support our full year expectations of high single-digit
revenue growth and solid progression in adjusted operating margin in H2.

 

Capital markets day

Our capital markets day will highlight Avon's deep technical expertise,
supportive addressable markets and strong position to grow above those
markets. The Group will also present additional details around its
transformation programme, including the roadmap to deliver Avon's margin and
return on capital targets.

 

For further details, and to register to attend the event, please contact
avonprotection@mhpgroup.com (mailto:avonprotection@mhpgroup.com) .

 

Jos Sclater, Chief Executive Officer, said:

 

"After a year of strengthening the business, we are now focused on our
objectives of creating a competitive advantage through superior execution,
growing faster than our markets by delivering new and improved products to our
customers, and increasing margins through our transformation programme.
 While there remain a number of opportunities and risks for us to navigate in
the year ahead, I am pleased to see the results start to reflect the strategic
and operational progress we are making. We remain focused on the actions
required to deliver our medium-term objectives."

 

Avon will report its half year results for the six months ending 31 March 2024
on 21 May 2024. Prior to this, the Group will host a capital markets day on 8
February 2024.

 

For further enquiries, please contact:

 

 Avon Protection plc
 Jos Sclater, Chief Executive Officer  +44 1225 896 848
 Rich Cashin, Chief Financial Officer

 MHP
 Tim Rowntree                          +44 7817 458804
 Ollie Hoare                           avonprotection@mhpgroup.com (mailto:avonprotection@mhpgroup.com)

 

Legal Entity Identifier: 213800JM1AN62REBWA71

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
("MAR") EU no.596/2014. Upon the publication of this announcement via
Regulatory Information Service ("RIS"), this inside information is now
considered to be in the public domain.

 

About Avon Protection plc:

Avon Protection plc make products that are trusted to protect the world's
militaries and first responders through its two brands Avon Protection and
Team Wendy.

Our dedicated teams achieve this by developing mission-critical solutions
that enhance our customers' performance, efficiency and capability, whilst
providing ever-increasing levels of protection.

With a portfolio that includes respiratory and head protection systems, we are
renowned for our innovative thinking and our steadfast approach to
manufacturing unrivalled products.

For further information, please visit our website www.avon-protection-plc.com
(http://www.avon-protection-plc.com/)

 

 

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