REG - Avon Protection PLC - Body armor strategic review

Avon TechnologiesAnnouncement

12/11/2021 07:05

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RNS Number : 1577S  Avon Protection PLC  12 November 2021

12 November 2021

Avon Protection plc

Body armor strategic review

Avon Protection plc ("Avon Protection" or "the Group") today provides an
update on its body armor business.

Body armor update

Following the contract awards for the U.S. Defense Logistics Agency ("DLA")
Enhanced Small Arms Protective Inserts ("ESAPI") and U.S. Army Vital Torso
Protection ("VTP") ESAPI body armor plates, we have been engaged with our
customers to complete the necessary product approval processes.
Disappointingly, the VTP ESAPI plates have encountered a failure in First
Article Testing which will significantly delay the likely approval timetable
for this product.

Separately, we have experienced further delays in obtaining final product
approvals for the DLA ESAPI body armor plates, with approvals for this product
now expected in the second quarter of our financial year ending 30 September
2022 ("FY22").

Strategic review of body armor business

In light of these challenges, the Board has initiated a strategic review of
our body armor business.

Our FY22 revenue guidance included approximately $40 million of body armor
revenue. In light of the above, the financial contribution from our body armor
business in FY22 and beyond will be significantly reduced, with the ultimate
impact, including any associated cost savings, depending on the outcome of the
review process.

These issues and the strategic review are restricted to the body armor
business, with the Group's leading respiratory protection and helmet product
portfolios unaffected.

Delay to FY21 results announcement

Our underlying trading results for FY21 are expected to be in line with the
guidance set out in the post close trading update of 13 October 2021.

We have delayed the announcement of our FY21 results, initially planned for 23
November 2021, to allow for a review of the carrying value of the assets
related to the body armor business and the additional audit work arising from
this post balance sheet event.

We will confirm a revised announcement date, which we expect to be in early
December, as soon as practicable. We will include an update on our strategic
review of our body armor business and provide updated guidance for FY22 and
beyond alongside our FY21 results announcement.

For further enquiries, please contact:

Avon Protection plc

Paul McDonald, Chief Executive
Officer                                 +44
1225 896 848

Nick Keveth, Chief Financial Officer

Rachel Stevens, Director of Investor Relations

 

MHP Communications

Andrew Jaques
                                                          +44
783 462 3818

Charlie Barker
                                                                            +44
771 003 2657

Peter
Lambie                                                                               avonprotection@mhpc.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.

Note to editors:

Avon Protection plc is listed on the London Stock Exchange (LSE: AVON) and is
an innovative technology group, which designs and produces life critical
personal protection systems to maximise the performance and capabilities of
its customers, with leading positions in the respiratory and ballistic
protection markets for the world's militaries and first responders.

 

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

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