REG - Avon Technologies - Preliminary Results
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RNS Number : 1358H Avon Technologies Plc 12 November 2025
12 November 2025
For immediate
release
AVON TECHNOLOGIES PLC
("Avon Technologies" or the "Group")
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
STRONG PLATFORM. EXPANDING HORIZONS
30 September 2025 30 September 2024 Change Change (constant currency)(3)
Orders received $351.5m $364.4m (3.5%) (3.6%)
Closing order book $262.8m $225.2m 16.7% 16.2%
Revenue $313.9m $275.0m 14.1% 13.8%
Adjusted(1) EBITDA $51.5m $43.4m 18.7% 20.6%
Adjusted(1) operating profit $40.3m $31.6m 27.5% 30.8%
Adjusted(1) profit before tax $34.9m $25.3m 37.9% 43.0%
Adjusted(1) basic earnings per share 91.2c 69.9c 30.5% 35.1%
Total dividend per share 24.6c 23.3c 5.6%
Net debt excluding lease liabilities $50.1m $43.5m 15.2%
Statutory results
Operating profit(2) $19.2m $10.7m
Profit before tax $13.1m $2.3m
Profit for the year $10.3m $3.0m
Basic earnings per share 34.9c 10.0c
Net debt $68.0m $65.4m
Excellent progress towards medium-term financial goals:
o Addressable markets currently outpacing the previous 3-4.5% forecast
annual growth rate
o Revenue, ROIC, cash conversion and leverage goals all achieved two years
earlier than targeted
o On track to achieve operating margin within the target range of 14-16% in
FY26
Continuous improvement (CI) driving operational improvements:
o Transitioned all production lines from batch to flow manufacturing -
layout improvements across every factory
o Irvine California site closed: on course to deliver savings from FY26
o Demonstrated ability to hit planned rate on key DoW(4) NG IHPS and ACH Gen
II programmes
o 24% global scrap reduction(5) showcasing CI-led operational improvements
o Sustained CI freeing up cash and resources to reinvest into technology,
talent, sales and marketing and disruptive technologies
Delivering organic growth through strategic wins and strengthening customer
base:
o Delivered FM54 masks to Australian Defence Force
o NSPA (NATO Support and Procurement Agency) contracts for FM50 and boots
and gloves now reached $100m of orders across 16 countries
o Grew US commercial law enforcement helmet sales by 15%
o US DoW orders totalling $64m for ACH Gen II and NG IHPS helmets
o Record order book of $263m, giving confidence in FY26 and beyond:
§ $131m US DoW order backlog for NG IHPS and ACH Gen II helmets
§ Turkish MoD initial delivery and follow-on order for full CBRN ensemble
system including suit, boots, gloves, mask and powered air respirator
§ Canada and two European Navy rebreather contracts won and orders placed
Increasing investment in long-term growth opportunities, supported by product
innovation:
o Launched RIFLETECH helmet and MITR half mask and powered goggle with
strong pipelines and excellent customer feedback
o Contracted on nine Programs of Record(6) with US DoW
o Investment in strengthened commercial sales team
A robust and repeatable business improvement system:
o Continuous improvement-led Strengthen System driving structural
improvement in the business, creating a higher-performing platform capable of
supporting greater scale
o On track to have met or exceeded our key targets in 2026
o Confident in continuing to deliver sustained growth and improved returns
over the long term
o Focus turning to accelerating growth whilst continually improving
operational execution
Jos Sclater, Chief Executive Officer, commented:
"Nearly two years ago, we set bold ambitions for the business, which could
only be achieved by significant change. This year, in particular, required
enormous tenacity and dedication from our employees. That effort is paying
off. Adjusted EPS has grown by over 100% since 2023, the balance sheet now
provides a strong foundation and strategic optionality, and we've launched
several exciting new products which will support future growth.
As we near the completion of the first phase of our strategy, our shift to a
continuous improvement culture is delivering real results and has been
fundamental to dramatically increasing the production run rate within Team
Wendy and expanding our market share in Avon Protection.
We are now a stronger business with more growth opportunities than ever,
underpinned by disciplined investment and relentless operational improvement.
None of this would be possible without our exceptional team, and I'm deeply
grateful for their hard work and commitment."
For further enquiries, please contact:
Avon Technologies plc
Jos Sclater, Chief Executive
Officer
Rich Cashin, Chief Financial
Officer
Gabriella Colley, Corporate Affairs
Director
+44 7891 206 239
Sodali & Co
Pete Lambie
avontechnologies@sodali.com (mailto:avontechnologies@sodali.com)
Tilly
Abraham
+44 7855 432 699
Analyst & investor webcast and retail investor presentation:
Jos Sclater, Chief Executive Officer, and Rich Cashin, Chief Financial
Officer, will host a presentation for analysts and investors at 9.00am today
at Peel Hunt, 100 Liverpool Street, EC2M 2AT. To attend in person please
contact: avontechnologies@sodali.com avontechnologies@sodali.com
(mailto:avontechnologies@sodali.com) . The presentation will also be broadcast
live at: https://brrmedia.news/AVON_FY_25 (https://brrmedia.news/AVON_FY_25)
A presentation for retail investors will be held on 14 November at 12.00pm.
Registration is available on the following link:
https://www.investormeetcompany.com/companies/avon-technologies-plc/meetings
(https://www.investormeetcompany.com/companies/avon-technologies-plc/meetings)
Notes:
(1) The Directors believe that adjusted measures provide a useful comparison
of business trends and performance. Adjusted results exclude adjusting items.
The term adjusted is not defined under IFRS and may not be comparable with
similarly titled measures used by other companies.
(2)Reported operating profit includes $5.7m amortisation of acquired
intangibles and transformational costs of $15.4m. See Adjusted performance
measures section for full breakdown of adjustments and comparatives.
(3) Constant currency measures are provided in the adjusted performance
measures section.
(4) US Department of War (formerly the US Department of Defense)
(5) Scrap is measured as scrap value / revenue. Full calculations for
operational metrics are provided in the adjusted performance measures section.
(6) Programs of Record are formally approved major US DoW acquisition programs
officially recorded in the budget with plans for development, procurement and
sustainment
( )
About Avon Technologies plc:
Avon Technologies is a Military and Law Enforcement protective equipment
specialist. Our products are trusted to protect over 4 million service
personnel and first responders in over 70 markets around the world.
Driven by a culture of continuous improvement, we empower every individual
in our organisation to identify opportunities and implement meaningful change.
This commitment fuels our innovation and ensures we're constantly advancing
our mission: to provide unparalleled protection for those who protect us.
Our business is structured around two Strategic Business Units:
· Avon Protection - a leading provider of advanced respiratory
and integrated protective systems.
· Team Wendy - a specialist in high-performance ballistic and
impact protection helmet systems.
For further information, please visit our
website www.avon-technologiesplc.com (http://www.avon-technologiesplc.com/)
Legal Entity Identifier: 213800JM1AN62REBWA71
CEO REVIEW
FINANCIAL SUMMARY
Following a period of exceptional commercial momentum, FY25 closed with
another record order book, up 16% at constant currency to $263m (FY24: $225m).
Avon Protection's order book grew by $45m to $117m, with good diversification
of demand across customers and product lines. Even excluding $13m in
Ukraine-related orders, the order book continues to strengthen. Team Wendy's
order book declined by $7m to $146m, reflecting the acceleration of DoW helmet
deliveries, the reduced 40% share (at a higher price) of the latest NG IHPS
award, and shorter lead times for police and first responder orders, resulting
in fewer outstanding deliveries.
Our core markets are currently expanding faster than the long-term growth
expectation we had previously set out, now growing at 3-4.5% CAGR. This has
been driven by rising defence budgets, particularly in Europe, and increased
focus on CBRN (chemical, biological, radiological and nuclear) protection amid
elevated threat levels. The strategic impact of CBRN attacks in Ukraine on
force mobility was a key driver for this and we are now also seeing armed
forces shifting focus towards 'war-fighting readiness'. The market for law
enforcement protective gear also continues to grow in response to civil unrest
and greater demands for police and first responder protective equipment.
Group revenue at constant currency rose 13.8% to $313.9m (FY24: $275.0m), with
Avon Protection up 16%, driven by strong NATO (including Ukraine) and
Australian Defence Force sales, and Team Wendy up 12% due to increased DoW
helmet production, alongside increased commercial sales to law enforcement and
accessories sales.
Adjusted operating profit rose 30.8% at constant currency, lifting Group
operating margin to 12.8% (FY24: 11.5%). Avon Protection delivered a strong
margin of 19.9% (FY24: 18.3%), driven by sales mix, operational gearing and
improved productivity. Team Wendy's margin increased to 4.6% (FY24: 3.9%). The
accelerated production output in Team Wendy in Q4 enabled the Group to exit
the year with a run rate operating margin approaching our target range of
14-16%. FY2026 will focus on sustaining this Q4 operational improvement in
Team Wendy, enabling us to reduce ramp-up costs through the first half,
delivering margin benefit through increased operating leverage and
productivity gains.
Adjusted basic EPS grew by 35.1% at constant currency, reflecting the uplift
in operating profit. Net debt increased to $50.1m (FY24: $43.5m). This is
primarily due to increased receivables from Team Wendy's DoW shipments in Q4,
which have now unwound. Our bank leverage ratio at the end of the year
remained comfortably below 1x, at 0.86x (FY24: 0.91x).
Cash conversion was strong at 90%, driven by the expected inventory unwind in
H2 in Team Wendy and improved working capital efficiency, with average turns
increasing to 5.19x (FY24: 4.52x).
Return on invested capital rose significantly to 18.6% (FY24: 13.7%),
exceeding our medium-term 17% target, reflecting higher operating profit and
reduced working capital.
OPERATIONAL SUMMARY
Our STAR strategy was launched in 2023 and set out the strategic priorities
required to achieve our medium-term goals of at least 5% revenue CAGR,
adjusted operating profit margins of 14-16%, ROIC of more than 17%, cash
conversion of 80-100% and 1-2x net debt to EBITDA.
Our STAR strategy comprises four focus areas:
o Strengthen through continuous improvement to drive sustained competitive
advantage - Every day, at every level of our organisation, people are making
small changes that improve our people's safety, our product quality, our
delivery to customers and inventory reduction. All while also improving
productivity. We call this our Strengthen System.
o Transform by creating solid foundations for growth - Continuous
improvement generates cash by reducing inventory and increasing productivity.
We reinvest that cash in growth, building operations and supporting functions
that enable the business to grow faster.
o Advance the business through organic growth - From growing and defending
our core and nurturing emerging opportunities to develop new revenue streams,
we can grow our core business organically - we call this our Advance
programme.
o Revolutionise: use research, partnerships and acquisitions to augment our
organic growth - And by leading the market with new products, new materials,
disruptive innovation and M&A, we can build a business for the long-term.
We remain fully committed to our STAR strategy, and it's delivering. With
strong momentum behind us, we have a packed pipeline of further initiatives
for 2026.
1. Strengthen through continuous improvement
Since we launched the Strengthen System at mid-year, it has become a powerful
engine for operational improvement. We're seeing clear opportunities to
further enhance safety, quality, delivery, inventory turns and productivity
across every site.
During the year we trained every employee on our Strengthen System, developed
20 proprietary courses for the STAR Academy and took 30 of our senior people
to Japan for an intense continuous improvement training course. We also
regularly share learning across the Group from STAR kaizen events, which are
cross-functional projects that take at least a week. Last year we completed
two STAR Kaizen per month, which illustrates the intensity of the change.
Operational KPIs improving: We set targets of a 35% productivity increase, a
>60% scrap reduction and inventory turns of more than five in the medium
term. Versus H123, when we launched these targets, productivity has improved
by 28%; scrap has reduced by 62%; and year-end inventory turns have improved
by 46% to 3.3x. Average inventory turns, stripping out the effect of a strong
Q4 in 2025, have improved from 2.8x to 3.0x over the same period.
This year: Average productivity, using the average number of employees during
the year, increased by 8% year on year, demonstrating that we are delivering
sustained improvements in efficiency of direct employees while materially
growing the business. Year-on-year productivity improvement was broadly flat
due to recruitment towards the end of the year to support growth in 2026. We
expect to see further improvement in 2026.
We continue to reduce our scrap rates across the business, with a 24%
reduction this year. Avon Protection has significantly reduced historically
high scrap rates in boots, gloves and visors. Team Wendy has improved quality
by training the operators to inspect quality on the line, encouraging stronger
autonomy and problem-solving, providing an immediate feedback loop if there is
a workmanship issue, and avoiding making lots of products before a defect is
found. Quality, operator capability and throughput all improved.
Average inventory turns improved by 5% to 3.0x in the year. Year-end inventory
turns rose 8% to 3.3x, reflecting our focus on increasing output. We expect
further improvement in 2026, but the first half is likely to be a mixed
picture, with finished good value increasing until the US Government shutdown
ends. This will be partly offset by a reduction in raw materials as we run
down excess stock from the Irvine closure.
Team Wendy DoW production increase: At our FY25 Interim Results we highlighted
the operational risk in Team Wendy associated with the ramp up of our DoW
helmet programmes. In Q4, production tripled to meet this ramp-up requirement.
Our primary goal in H1 2026 is to sustain this improved level of output ahead
of driving further growth, but we exit FY25 with confidence that we will see
higher revenue and improved operational gearing in 2026. We will seek to
further improve quality and productivity on the NG IHPS helmet line and
increase production on the ACH Gen II line by a further 50%.
2. Transform by creating solid foundations for growth
Most of the previously announced transformation initiatives are now complete.
Total investment in FY25 came in a little higher than planned at $15.4m (FY24:
$13.0m) and $1.2m of capital expenditure (FY24: $1.7m) as we deployed
additional resources to meet the required production rates in H2 2025.
Workstream 2027 goals Progress in 2025
Footprint optimisation 50% improvement in revenue/sq ft Since FY24 we have increased revenue per square foot of utilised space by 43%
across the Group.
10ppts improvement in Team Wendy gross margin
We have reduced the number of Team Wendy locations from three to two. This
makes it simpler to run the business, gets us out of our high-cost California
site and creates the platform for future growth.
We also exited the off-site warehouse in Avon Protection and have freed up
around 9,000 square feet of total factory space across the US and UK to
support future expansion ambitions.
Operational excellence (plant transformations) 35% productivity improvement We have transformed every site from batch to flow manufacturing and continue
to deliver improved operating metrics while increasing output and introducing
production lines for new products. This was a major undertaking. It is not an
exaggeration to say we have moved almost every piece of equipment across the
>60% scrap improvement entire Group.
Inventory turns >5
Functional excellence Roll-out of SBU functions We've restructured our HR team, including changing our recruitment strategy in
Cleveland, which is improving recruitment and retention rates.
We're on track to remove our SAP system from the Group at the end of this
calendar year, with a $2m investment in FY26, expected to save over $1m a
year.
We've also added a project to optimise our IT function with a view to creating
a function that is more cost-effective and can better support our lean
transformation.
Commercial optimisation Complete screening of product portfolio, identifying potential improvements Our new VP of Sales has developed a strategy to improve our sales capability
and we have a record amount of bid activity.
In 2026, we will invest in expanding our sales capabilities to accelerate our
North American and international growth across both business units.
In Team Wendy, we aim to increase our direct sales through the newly launched
e-commerce site, elevate the brand with their new website, and hold more
marketing events where we arrange for our law enforcement customers to shoot
our helmets so they can see how effective they are.
Transformation related costs will reduce to around $6m in FY26. The new IT
optimisation programme referenced above will deliver a compelling payback,
with the investment being returned in lower operating costs within the first
two years.
While the transformation programme will finish at the end of 2026, the
Strengthen System will continue: kaizen is forever.
3. Advance the business through organic growth
Our Advance pillar is about delivering innovative products in the short and
medium term, driving increased sales, orders and pipeline. In FY25 we launched
nine new products across the Group, further driving growth.
Avon Protection
Order book: Avon Protection's order book is well diversified across customers
and product lines, with orders under a critical UK defence programme,
rebreathers, spares and accessories. Strong demand under our NATO framework
contract has led to a total of $100m of orders for respirators, boots and
gloves across 16 countries since the contract started, supporting future
recurring revenue. Even excluding $13m in Ukraine-related orders, the order
book continues to strengthen.
Beyond the order book, our pipeline of opportunities is bigger than ever:
· The next DoW filter order is still to be issued, but we are hopeful
we will receive it in 2026. There is also the potential for a large filter
order from the Middle East.
· Our MITR lightweight half mask and powered goggle were launched this
year. We have live opportunities for MITR sales with the special forces from
four of the Five-Eyes nations. This is an important proving ground, as regular
forces tend to follow the lead of the special forces in disruptive technology
adoption.
· In rebreathers, we won orders with Canada and two European navies in
the year and have quoted for two further new naval customers. In addition, we
are actively engaged with the US DoW, US SOCOM and the US Marines on
rebreather opportunities and expect to receive invitations to tender this
year.
· In ensemble (integrated suits, boots & gloves) we have
opportunities for our lightweight chemically resistant suit with customers in
the Middle East and NATO including the US.
MITR (Modular Integrated Tactical Respirator): MITR is a modular system ideal
for operators or soldiers in lower-threat environments where traditional
high-end equipment can be cumbersome and hinder mission effectiveness. MITR is
also ideal for law enforcement / SWAT operating in similar environments or
facing threats like the 'fentanyl crisis'. We are working with the DoW on the
Enhanced Bio-Defense Respirator (ENBD), based on our MITR system, with first
prototypes delivered in October and trials with the US Marines this month.
We have also been awarded another DoW development programme as part of their
push to combat irregular warfare. The programme aims to develop a Scalable
Tactical Assault Respirator (STAR), which builds on the MITR platform and adds
functionality and equipment. STAR has a broad range of interested user groups,
including US special forces, US Air Force, Los Angeles Police Department and
FBI.
These programmes will enhance the capability of MITR and ensure it meets the
needs of our key customers. They were won against considerable competition,
which increases our confidence that we are the leader in the new market for
low-burden non-CBRN respiratory protection.
We also achieved CE approval for MITR and its particulate filter and recently
received approval from the US regulator NIOSH. This is a key step towards
entry into the US federal market.
Integrated CBRN protection: We won an order with the Turkish MOD this year for
a full CBRN ensemble system including suit, boots, gloves, C50 mask and
MP-PAPR (Modular Powered Air-Purifying Respirator). This is important as it
shows that our strategy to sell full ensemble packages meets the needs of our
customers.
We successfully delivered phase 1 prototypes for all three Hood Mask
Interface, or HMI programmes to the DoW and were selected for Phase 2 of the
programme. If this translates into revenue it will be a long way away, but it
is teaching us important things about the hood mask interface which we are
using to improve the capability of our ensemble offering right now.
We are also seeing significant demand for our boots and gloves. Despite
excellent work by the team to increase productivity, we now have a two-year
backlog on these products.
EXOSKIN: Interest in our EXOSKIN suit increased during the second half. Two
different versions of our EXOSKIN suits have been chosen by the US DOW for
trials. There is potential for a larger programme, which is not in our current
forecasts, but competition will no doubt be fierce. We are cautiously
optimistic that our lightweight, low-burden suit is what the users want.
CS-PAPR SD: An additional new product which will launch in Q2 FY26 is the new
CS-PAPR. This is a next-generation CBRN modular respirator that allows users
to seamlessly switch between Self-Contained Breathing Apparatus and Powered
Air-Purifying Respirator modes for short-duration missions, giving them the
ability to escape sudden high-threat situations. This has been trialled at
several end user events including CBOA and RDAX.
Team Wendy
Order book: Team Wendy's order book largely consists of Next Generation IHPS
and ACH Gen II for the US DoW, and the EXFIL ballistic helmet for the
Australian Defence Force. At $146m it is down around $7m. This is due to our
increased delivery rate of DoW helmets, a 40%-win rate of the last NG IHPS
award, at a higher price, and reduced lead times on orders from the police and
first responders.
We saw good growth in the US police and first responder market, which was up
15% in FY25, and another year of very strong demand for combat helmet pads and
liner systems from the US Army and Marine Corps.
Our support to NAVAIR for EXFIL bump helmets has also been a key driver of
growth, with over 25,000 helmets supplied to the US Navy this year. These
helmets offer enhanced impact and work with hearing protection, addressing
long-standing gaps in legacy systems.
The pipeline in Team Wendy is extremely promising. We are working towards
contracts with two international militaries, and we see lots of helmet
opportunities in the US commercial market across the police, the DEA, FBI and
ICE.
EPIC: The EPIC helmet range has driven growth by bringing our leading DoW
technology into commercial products. New variants have helped Team Wendy
expand beyond specialist users, securing a strong presence with major police
departments.
Excitingly, we are seeing growth in the pipeline of opportunities in Europe.
A European military is enthusiastic about choosing our EPIC helmet; this has
potential to be a multi-year programme.
We are also seeing good growth from e-commerce, which was up 5% this year; we
expect this to continue to build, supported by the new Team Wendy ecommerce
site and website.
RIFLETECH: We launched RIFLETECH in H1 and have seen strong early demand, both
internationally and in the US commercial markets. RIFLETECH delivers elite
ballistic protection and all-day comfort in a lightweight, mission-ready
design.
We've now shipped RIFLETECH for international military deployment, made our
first e-commerce sales, and sold units to US police forces.
All of this demonstrates that there is a market for a very high-end rifle
protection helmet within the military, federal and local forces. The addition
of RIFLETECH has solidified Team Wendy's position as a full spectrum supplier
of innovative head protection.
4. Revolutionise: use research, partnerships and acquisitions to augment our
organic growth
This year, we're expanding Revolutionise to include bolt-on acquisitions where
we believe they can drive our growth potential and meet our returns
thresholds. Our long-term vision is to compound shareholder value by
complementing organic growth with targeted, value accretive acquisitions. We
have the team, the capability, and the scalable business model to deliver
shareholder value from acquired assets in a disciplined manner.
That said, our immediate focus remains on organic growth and operational
improvement, and we have had strong success this year securing customer-funded
development programmes in addition to growing our internally funded investment
in innovation:
Avon Protection
Voice projection unit (CVPU): We have been working for some time on a new
voice projection unit for our 50 series of masks, with deliveries planned to
start in 2026. The new VPU will be a single digital solution, for all our
masks, offering users improved functionality and less complexity.
Next generation SCBA (Self-Contained Breathing Apparatus): We are also
launching the next generation of supplied air products this year, tailored for
long-duration missions and high-threat environments. We expect these targeted
product upgrades to increase end-user adoption.
Shallow water rebreather: Looking further out, we are working on a new shallow
water rebreather and expect to bid for joint funding from the UK MoD this
year.
Filters: We are also looking to exploit our new multi-layer bed filter
technology, which provides a far broader spectrum of protection than existing
carbon filters.
Team Wendy
New products: In FY26 we will launch our most ambitious development programme
yet, with two new ballistic helmets built around our latest DoW technology and
our 'no-through-hole' attachment system. These will upgrade our legacy range
with higher protection at lower weight.
We will also expand in the global non-ballistic market with a new generation
of bump helmets - offering leading protection and multi-certification in a
single platform for all operations.
Together, these launches will increase our reach into new markets and further
differentiate Team Wendy from the competition.
Development: Demand for integrated head protection continues to grow. In 2025,
we secured a new DoW-funded development programme to develop a helmet that can
withstand an even higher ballistic threat, with integrated eye and hearing
protection and night vision compatibility. This is important because it
positions us well for the next major helmet Program of Record.
We have also won multi-year research funding to develop technologies that
detect and mitigate traumatic brain injury, regardless of threat type.
RISKS AND OPPORTUNITIES
Risks
Production ramp-up and optimisation of lines in Cleveland: We need to further
increase production rates on ACH Gen II helmets. This involves further
optimisation of our lines. We know how to do this but there is still a lot
to do. Recruiting good people at the speed we need remains a challenge but is
improving with the changes to our recruitment model. We also need to keep
improving supply chain, machine and IT reliability to support this operational
stability.
Increased competition: There is risk of increased competition on the NG IHPS
programme with a new supplier possibly entering the market. This will become
clearer as the sustainment planning for the NG IHPS programme beyond 2028
progresses.
US government shutdown: The US government shutdown prevents the delivery of
helmets to the DoW but does not slow production. We expect to see a temporary
impact on working capital but no long-term impact.
Opportunities
New programmes and international growth: We are bidding for several major US
and international programmes which are not in our current forecasts, as timing
and probability is hard to predict. There may be upside to our financial
performance if any of these are secured, but it remains too early to form a
view on likelihood at this stage.
Margin expansion and additional cash from continuous improvement: Additional
unplanned margin and cash improvements driven by increasing productivity and
inventory turns
SUMMARY
FY25 marked a year of strong momentum, rapid revenue growth, improved
profitability, and a record order book that gives us high confidence heading
into FY26.
Market conditions remain favourable, with rising defence spending,
particularly in Europe, and growing demand for protective solutions.
We invested $14m in research & development, mostly expensed, fuelling a
portfolio of breakthrough products that are generating real excitement among
our customers. We also secured a record number of development partnerships,
reinforcing our competitive moat.
At the same time, we have overhauled every factory using the Strengthen
System, relocating equipment to optimise flow, improve quality, and drive
efficiency. These changes are already delivering measurable results.
The original transformation projects are largely complete, with just two
smaller, though lucrative, initiatives to finish in FY26.
And finally, we have proven that our business improvement system works, and is
scalable. This positions us to begin to pursue bolt-on acquisitions that will
further strengthen our technology leadership and accelerate growth.
OUTLOOK
We are ahead of the targets we set for 2027. Revenue growth has outpaced
original guidance, operating margins are approaching our target range, ROIC is
already above our 2027 goal, cash conversion remains consistently strong, and
leverage remains below our target range.
Our continuous improvement-led Strengthen System is driving structural
improvement across the business, creating a higher-performing platform capable
of supporting greater scale. In Team Wendy, we have made good progress
stabilising operations, but there is still more to do. As we ramp up
production, further optimisation of the DoW lines remains a priority, to
mitigate operational risk and ensure consistency at scale.
We are firmly on track to meet or exceed our key targets in FY26 and confident
in sustaining improved returns over the long term, with further initiatives
underway to support continued margin expansion into FY27. With a positive
long-term structural outlook for our markets, focus is now turning to
accelerating the growth opportunity while continuously improving our business
to drive our competitive advantage.
2026 FINANCIAL GUIDANCE
We expect continued above-market growth in FY26, fuelled by investments in
product development and sales and marketing. The Irvine site closure, part of
the footprint optimisation project, will begin delivering significant margin
improvements for Team Wendy from FY26 onwards. Our ongoing focus on CI and
manufacturing optimisation will further support Group-wide adjusted operating
margin gains, albeit with increases in US healthcare costs providing a
headwind.
As such, we expect the Group to deliver:
· High-single-digit revenue growth
· Adjusted operating profit margin within our target 14-16% range
· More than 60% decrease in transformation expenses at c.$6m
· Cash conversion of over 80% before transformational costs
FINANCIAL REVIEW
The Group has delivered another strong financial performance with excellent
year-on-year profitability growth, alongside a record closing order book of
$262.8m, an increase of 16.7%. Revenue increased by 13.8% on a constant
currency basis to $313.9m (2024: $275.0m), reflecting ramp-up of ACH Gen II
volumes in Team Wendy and growth in demand in Europe for our respiratory
portfolio in Avon Protection. Adjusted operating profit increased by 30.8% on
a constant currency basis to $40.3m (2024: $31.6m) and adjusted operating
profit margin improved to 12.8% (2024: 11.5%).
30 September 2025 30 September Change Change (constant currency)(3)
2024
Orders received $351.5m $364.4m (3.5%) (3.6%)
Closing order book $262.8m $225.2m 16.7% 16.2%
Revenue $313.9m $275.0m 14.1% 13.8%
Adjusted(1) operating profit $40.3m $31.6m 27.5% 30.8%
Adjusted(1) operating profit margin 12.8% 11.5% 130bps 160bps
Adjusted(1) net finance costs $(5.4)m $(6.3)m (14.3%) (15.6%)
Adjusted(1) profit before tax $34.9m $25.3m 37.9% 43.0%
Adjusted(1) taxation $(8.0)m $(4.4)m
Adjusted(1) profit after tax $26.9m $20.9m
Adjusted(1) basic earnings per share 91.2c 69.9c 30.5% 35.1%
Total dividend per share 24.6c 23.3c 5.6%
Net debt excluding lease liabilities $50.1m $43.5m 15.2%
Cash conversion 90.3% 157.8%
Return on invested capital(1) 18.6% 13.7%
Statutory results
Operating profit(2) $19.2m $10.7m
Net finance costs $(6.1)m $(8.4)m
Profit before tax $13.1m $2.3m
Taxation $(2.8)m $0.7m
Profit after tax $10.3m $3.0m
Basic earnings per share 34.9c 10.0c
Net debt $68.0m $65.4m
1 The Directors believe that adjusted measures provide a useful comparison of
business trends and performance. Adjusted results exclude adjusting items. The
term 'adjusted' is not defined under IFRS and may not be comparable with
similarly titled measures used by other companies.
2 Reported operating profit includes $5.7m amortisation of acquired
intangibles and transformational costs of $15.4m. See the Adjusted Performance
Measures section for a full breakdown of adjustments and comparatives.
3 Constant currency measures are provided in the Adjusted Performance Measures
section.
Order intake for the Group of $351.5m (2024: $364.4m) was down 3.5% (3.6%
constant currency). Avon Protection order intake was up 17.5% with notable
international demand for CBRN boots and gloves, and rebreathers. Team Wendy
order intake was down 24.6%, predominantly due to the phasing of US DoW NG
IHPS and ACH Gen II orders.
The closing order book of $262.8m reflects an increase of 16.7% (16.2%
constant currency) over the prior year. The Avon Protection closing order book
of $117.0m reflects an increase of 62.5% which includes $10.3m for our
rebreathers, and $12.4m of CBRN boots and gloves. Team Wendy closed the year
with $145.8m in the order book, a decrease of 4.8% due to deliveries of DoW
helmets outpacing new orders, and reduced lead times across our commercial
ranges.
Revenue for the Group totalled $313.9m, an increase of 14.1% (13.8% constant
currency) compared to the prior year of $275.0m. Avon Protection revenue
totalled $168.8m, an increase of 15.9% compared to $145.6m in 2024. Strong
sales growth of 57.8% to UK and International customers, driven by Australian
FM54 deliveries, CBRN boots and gloves to NATO and Ukraine support, offset a
decline in US Commercial revenue following a particularly strong FY24. US DoW
sales also declined due to the phasing of mask deliveries.
Team Wendy revenue totalled $145.1m, an increase of 12.1% over the prior year
of $129.4m. US DoW revenue grew by 15.4% due to an increase in ACH Gen II and
EXFIL bump helmet deliveries and demand for helmet pads. Commercial Americas
revenue grew by 14.9% with strong sales across the range. UK &
International revenue declined by 9.9%, reflecting timing of demand from
larger customers.
Adjusted operating profit was $40.3m (2024: $31.6m). This was the result of
operational gearing effects from increased revenue in both sides of the
business, and further benefits from our continuous improvement efforts,
although these were tempered in Team Wendy as we ramp up production in
Cleveland. This resulted in an adjusted operating profit margin of 12.8%
(2024: 11.5%), up 130bps (160bps constant currency).
Statutory operating profit of $19.2m (2024: $10.7m) reflected adjusting items
in the year which are summarised below.
The adjusted performance measures section contains a full breakdown and
explanation of adjustments.
Statutory operating profit FY25 FY24
$m $m
19.2 10.7
Amortisation of acquired intangibles 5.7 6.2
Impairment of goodwill and other non-current assets - 1.7
Transformation costs 11.5 10.8
Acceleration of depreciation and amortisation - transformation 3.9 2.2
Adjusted operating profit 40.3 31.6
Adjusted net finance costs decreased to $5.4m (2024: $6.3m), mainly due to
lower average net debt through the year.
After an adjusted tax charge of $8.0m (2024: $4.4m), the Group recorded an
adjusted profit for the year after tax of $26.9m (2024: $20.9m).
Adjusted basic earnings per share increased to 91.2c (2024: 69.9c), reflecting
the growth in operating profit and the reduction in finance charges mentioned
above.
Return on invested capital increased to 18.6% (2024: 13.7%), reflecting higher
adjusted operating profit and lower invested capital.
Statutory net finance costs of $6.1m (2024: $8.4m) include $0.7m (2024: $2.1m)
net interest expense on the UK defined benefit pension scheme liability.
Statutory profit before tax was $13.1m (2024: $2.3m) and, after a tax charge
of $2.8m (2024: credit of $0.7m), the profit for the year was $10.3m (2024:
$3.0m).
Transformation costs
FY25 FY24
$m $m
Footprint optimisation and operational excellence (1) 15.4 11.7
Functional excellence - 1.0
Programme management excellence - 0.3
Total transformation costs 15.4 13.0
(1) Including $2.6m for acceleration of amortisation related to legacy ERP
systems (FY24: $1.6m), and $1.3m acceleration of depreciation and amortisation
for assets that were held in Irvine that are no longer used (FY24: $0.6m).
Investment in transformation initiatives has been slightly above expectations
and guidance set out with the HY25 results. All spend in the year related to
Team Wendy, where we incurred additional cost in H2 to increase output,
stabilise Cleveland operations and close the Irvine site after manufacturing
ceased at the end of H1. Footprint optimisation and operational excellence
have been combined as a single category, as these initiatives have become
closely associated in the later stages of the transformation programme.
Segmental performance
FY25 FY24
Avon Protection Team Wendy Total Avon Protection Team Wendy Total
$m
Orders received 213.8 137.7 351.5 181.8 182.6 364.4
Closing order book 117.0 145.8 262.8 72.0 153.2 225.2
Revenue 168.8 145.1 313.9 145.6 129.4 275.0
Adjusted operating profit 33.6 6.7 40.3 26.6 5.0 31.6
Adjusted operating profit margin 19.9% 4.6% 12.8% 18.3% 3.9% 11.5%
A 15.9% increase in revenue within Avon Protection resulted in an 26.3%
increase in operating profit to $33.6m (2024: $26.6m), with profit margin
increasing by 160bps to 19.9% (2024: 18.3%). Margins benefited from the
operational gearing effect of the increase in revenue, favourable mix towards
our higher specification products, strong commercial execution, and
productivity improvements driven by our focus on continuous improvement.
Team Wendy margins increased by 70bps to 4.6% (2024: 3.9%). Margin growth was
held back by site consolidation costs, particularly increased labour in
Cleveland, to ensure successful ramp-up on the new manufacturing lines.
Research and development expenditure
Total investment in research and development (capitalised and expensed) was
$13.5m (2024: $11.4m), above the prior year by 18% in absolute terms and by
20bps as a percentage of revenue.
FY25 FY24
$m $m
Total expenditure 13.5 11.4
Less cost of customer funded projects (1.5) (1.6)
Group expenditure 12.0 9.8
Capitalised (1.5) -
Income statement impact 10.5 9.8
Amortisation and impairment of development expenditure 3.2 4.3
Total income statement impact 13.7 14.1
Revenue 313.9 275.0
R&D spend as a % of revenue 4.3% 4.1%
Avon Protection expenditure has primarily focused on completing the
development of MITR, the new voice projection unit and seven DoW Programs of
Record. Team Wendy expenditure largely related to RIFLETECH development and
the next-generation bump helmet.
Net debt and cash flow
FY25 FY24
$m $m
Adjusted continuing EBITDA 51.5 43.4
Share-based payments and defined benefit pension scheme costs 6.7 4.4
Working capital (11.7) 20.7
Cash flows from continuing operations before adjusting items 46.5 68.5
Transformational costs paid (13.1) (9.7)
Cash flows from continuing operations 33.4 58.8
Cash flows from discontinued operations - 4.9
Cash flow from operations 33.4 63.7
Payments to pension plan (6.0) (9.1)
Net finance costs (5.2) (6.7)
Net repayment of leases (2.9) (3.3)
Tax paid - (0.7)
Capital expenditure (9.6) (11.2)
Purchase of own shares - Long-Term Incentive Plan (9.1) (5.0)
Dividends to shareholders (7.2) (6.8)
Foreign exchange on cash - 0.1
Change in net debt (6.6) 21.0
Opening net debt, excluding lease liabilities (43.5) (64.5)
Closing net debt, excluding lease liabilities (50.1) (43.5)
Cash flows from continuing operations before adjusting items were $46.5m
(2024: $68.5m) with the movement principally due to working capital outflows
of $11.7m, compared to inflows of $20.7m in the prior year. This was driven by
sales phasing, with a $17.2m receivable balance outstanding from the DoW at
year end for ACH Gen II and NG IHPS helmet sales in Q4. The outstanding DoW
receivables balance has been paid in full at the date of this announcement.
Dividends were $7.2m (2024: $6.8m). Our first priorities remain organic
investment into R&D and transformation followed by a progressive dividend
targeting between 2.5x and 3x EPS cover through the cycle. Excess cash will be
deployed in an EPS enhancing way, either through M&A or alternative
shareholder returns.
The purchase of own shares to satisfy future exercises of options granted to
employees under the Long-Term Incentive Plan was $9.1m (2024: $5.0m), hedging
potential cash costs.
Net debt was $68.0m (2024: $65.4m), which includes lease liabilities of $17.9m
(2024: $21.9m). Excluding lease liabilities, net debt was $50.1m (2024:
$43.5m).
Defined benefit pension scheme
The Group operated a contributory defined benefits plan to provide pension and
death benefits for the employees of Avon Technologies plc and its Group
undertakings in the UK employed prior to 31 January 2003. The plan was closed
to future accrual of benefit on 1 October 2009 and has a weighted average
maturity of approximately 11 years. The net pension liability for the scheme
amounted to $13.8m as at 30 September 2025 (2024: $17.2m). The decrease was
mainly due to deficit contributions of $6.0m, partially offset by some
investment underperformance.
In accordance with the deficit recovery plan agreed following the 31 March
2022 actuarial valuation, the Group will make payments in FY26 of £4.7m and
FY27 of £5.1m in respect of deficit recovery and scheme expenses. The next
triennial valuation at 31 March 2025 is now underway, with the outcome of the
process expected mid-FY26.
Foreign exchange risk management
The Group is exposed to translational foreign exchange risk arising when the
results of sterling denominated companies are consolidated into the Group's
presentational currency, US dollars. The Group's policy is not to hedge
translational foreign exchange risk. Due to the translational effect, a 1 cent
increase in the value of the US dollar against sterling would have decreased
revenue by approximately $0.3m and increased operating profit by approximately
$0.3m for FY25.
Financing and interest rate risk management
The Group has a $137m revolving credit facility (RCF), together with a $50m
accordion. The RCF is held with a syndicate of four lenders and is available
until May 2028. The RCF has a one-year extension option to May 2029, subject
to lender approval.
RCF borrowings are floating rate priced using the US Secured Overnight
Financing Rate (SOFR). The Group hedges interest rate exposure using swaps to
fix a portion of SOFR floating rate interest. The notional value of active
interest rate swaps at 30 September 2025 was $20.0m, expiring on 8 September
2026 (FY24: $20.0m). The financial value of interest rate swaps at 30
September 2025 was $nil (FY24: nil).
Dividends
The Board has proposed a final dividend of 17.0 cents per share (2024: 16.1c).
The final dividend will be paid in pounds sterling on 6 March 2026 to
shareholders on the register at 6 February 2026. The final dividend will be
converted into pounds sterling for payment at the prevailing exchange rate,
which will be announced prior to payment.
Jos Sclater Rich Cashin
Chief Executive Officer Chief Financial Officer
11 November 2025 11 November 2025
Forward-looking statements
Certain statements in this report are forward‐looking. Although the Group
believes that the expectations reflected in these forward‐looking statements
are reasonable, we can give no assurance that these expectations will prove to
have been correct. Because these statements involve risks and uncertainties,
actual results may differ materially from those expressed or implied by these
forward‐looking statements.
We undertake no obligation to update any forward‐looking statements whether
because of new information, future events or otherwise.
Company website
The full annual report will be made available on 5 December 2025 on the
Company's website https://www.avon-technologiesplc.com/. The maintenance and
integrity of the website is the responsibility of the Directors. Legislation
in the United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Performance measurement
The Directors assess the operating performance of the Group based on both
statutory and adjusted measures. Adjusted measures include operating profit,
net finance costs, taxation and earnings per share, as well as other measures
not defined under IFRS including orders received, closing order book,
operating profit margin, return on invested capital, cash conversion, net debt
excluding lease liabilities, average working capital turns, scrap levels,
inventory turns, productivity and constant currency equivalents for relevant
metrics. These measures are collectively described as Adjusted Performance
Measures (APMs).
The Directors believe that the APMs provide a useful comparison of business
trends and performance. The APMs exclude adjusting items considered unrelated
to the underlying trading performance of the Group. The term adjusted is not
defined under IFRS and may not be comparable with similarly titled measures
used by other companies. The Directors do not consider APMs to be more
relevant or reliable than IFRS measures. The Group uses these measures for
planning, budgeting and reporting purposes and for its internal assessment of
the operational performance.
Adjusted performance measures
Year ended 30 September 2025 Year ended 30 September 2024
Adjusted Adjustments Total Adjusted Adjustments Total
$m $m $m $m $m $m
Revenue 313.9 - 313.9 275.0 - 275.0
Cost of sales (184.1) (1.1) (185.2) (168.2) (1.0) (169.2)
Gross profit 129.8 (1.1) 128.7 106.8 (1.0) 105.8
Sales and marketing expenses (18.2) - (18.2) (16.1) - (16.1)
Research and development costs (12.0) (1.7) (13.7) (11.5) (2.6) (14.1)
General and administrative expenses (59.3) (18.3) (77.6) (47.6) (17.3) (64.9)
Operating profit/(loss) 40.3 (21.1) 19.2 31.6 (20.9) 10.7
EBITDA 51.5 (11.5) 40.0 43.4 (10.8) 32.6
Depreciation, amortisation and impairment (11.2) (9.6) (20.8) (11.8) (10.1) (21.9)
Operating profit/(loss) (1) 40.3 (21.1) 19.2 31.6 (20.9) 10.7
Net finance costs (2) (5.4) (0.7) (6.1) (6.3) (2.1) (8.4)
Profit/(loss) before taxation 34.9 (21.8) 13.1 25.3 (23.0) 2.3
Taxation (3) (8.0) 5.2 (2.8) (4.4) 5.1 0.7
Profit/(loss) for the year (4) 26.9 (16.6) 10.3 20.9 (17.9) 3.0
Basic earnings/(loss) per share (5) 91.2c (56.3c) 34.9c 69.9c (59.9c) 10.0c
Diluted earnings/(loss) per share (5) 87.7c (54.1c) 33.6c 67.6c (57.9c) 9.7c
1 Adjustments to operating profit
Adjusted operating profit excludes adjusting items considered unrelated to the
underlying trading performance of the Group. Transactions are classified as
adjusting where they relate to an event that falls outside of the underlying
trading activities of the business and where individually, or in aggregate,
the Directors consider they have a material impact on the financial
statements.
2025 2024
$m
$m
Operating profit 19.2 10.7
Amortisation of acquired intangibles 5.7 6.2
Impairment of other non-current assets (excluding restructuring-related - 1.7
impairments)
Transformational, restructuring and transition costs 11.5 10.8
Acceleration of software amortisation - transformational 2.6 1.6
Acceleration of Irvine depreciation and amortisation - transformational 1.3 0.6
Adjusted operating profit 40.3 31.6
Depreciation 7.1 7.4
Other amortisation charges 4.1 4.4
Adjusted EBITDA 51.5 43.4
Amortisation of acquired intangibles
Amortisation charges for acquired intangible assets of $5.7m (2024: $6.2m) are
excluded from adjusted measures as they do not change each period based on
underlying business trading and performance.
Impairment of other non-current assets
Review of the Group's non-current assets resulted in a $1.7m impairment loss
in the prior year as the carrying value of a product group level CGU exceeded
its estimated recoverable amount. Further details are provided in note 3.1.
The impairment losses were significant items resulting from changes in
assumptions for future recoverable amounts. As such they are considered
unrelated to trading performance.
Transformation, restructuring and transition costs
Current year transformational costs excluding depreciation and amortisation
charges were $11.5m (2024: $10.8m). In the current year these related to
footprint optimisation through closure of the Irvine, California, facility and
operational excellence programmes (2024: $9.5m). In 2024 $1.3m related to
other transformational programmes.
Transformational costs directly relate to transformation initiatives. Spend
includes attributable costs related to headcount, line testing, redundancies,
site closure, external support and other items.
Transformational accelerated depreciation and amortisation charges were $3.9m
(2024: $2.2m). These include $2.6m (2024: $1.6m) related to one of the Group's
legacy ERP systems, and $1.3m (2024: $0.6m) for assets that were held in
Irvine and have no use following the site closure.
These costs are considered adjusting items as they relate to specific
activities which do not form part of the underlying business trading and
performance.
2 Adjustments to net finance costs
Adjusted net finance costs exclude adjusting items considered unrelated to the
underlying trading performance of the Group.
2025 2024
$m
$m
Net finance costs 6.1 8.4
Pension discount unwind (0.7) (2.1)
Adjusted net finance costs 5.4 6.3
$0.7m (2024: $2.1m) unwind of discounting on the UK defined benefit pension
scheme liability is excluded from adjusted measures given the scheme relates
to employees employed prior to 31 January 2003 and was closed to future
accrual of benefits on 1 October 2009.
3 Adjustments to taxation
Adjustments to taxation represent the tax effects of the adjustments to
operating profit and net finance costs. The adjusting items do not have
significantly different effective tax rates compared to statutory rates, with
an overall effective rate of 24% (2024: 22%).
4 Adjustments to profit
2025 2024
$m
$m
Profit for the year 10.3 3.0
Amortisation of acquired intangibles 5.7 6.2
Transformational costs 11.5 10.8
Acceleration of software amortisation - transformational 2.6 1.6
Acceleration of Irvine depreciation and amortisation - transformational 1.3 0.6
Impairment of other non-current assets - 1.7
Defined benefit pension unwind discount 0.7 2.1
Tax on adjusting items (5.2) (5.1)
Adjusted profit for the year 26.9 20.9
5 Adjusted earnings per share
Weighted average number of shares 2025 2024
Weighted average number of ordinary shares in issue used in basic calculation 29,488 29,895
(thousands)
Potentially dilutive shares (weighted average) (thousands) 1,169 1,022
Diluted number of ordinary shares (weighted average) (thousands) 30,657 30,917
Adjusted earnings per share 2025 2024
$ cents
$ cents
Basic 91.2c 69.9c
Diluted 87.7c 67.6c
6 Net debt
2025 2024
$m
$m
Cash and cash equivalents 13.4 14.0
Bank loans (63.5) (57.5)
Net debt excluding lease liabilities (50.1) (43.5)
Lease liabilities (17.9) (21.9)
Net debt including lease liabilities (68.0) (65.4)
7 Adjusted dividend cover ratio
2025 2024
$ cents
$ cents
Interim dividend 7.6c 7.2c
Final dividend 17.0c 16.1c
Total dividend 24.6c 23.3c
Adjusted basic earnings per share 91.2c 69.9c
Adjusted dividend cover ratio 3.7 times 3.0 times
8 Return on invested capital
Return on invested capital (ROIC) is calculated as adjusted operating profit
over average invested capital.
2025 2024
$m
$m
Net assets 166.7 166.5
Net debt excluding lease liabilities 50.1 43.5
Lease liabilities 17.9 21.9
Pension 13.8 17.2
Net tax (31.8) (31.4)
Total invested capital 216.7 217.7
Average invested capital 217.2 231.5
Adjusted operating profit 40.3 31.6
ROIC 18.6% 13.7%
Average invested capital 2025 2024
$m
$m
Current period invested capital 216.7 217.7
Prior period invested capital 217.7 245.3
Average invested capital 217.2 231.5
9 Average working capital turns (AWCT)
AWCT is the ratio of the 12-month average month end working capital (defined
as the total of inventory, receivables and payables excluding lease
liabilities) to revenue.
2025 2024
$m
$m
12-month average month end working capital 60.5 60.8
Revenue 313.9 275.0
AWCT 5.19 4.52
10 Cash conversion
Cash conversion excludes the impact of adjusting items from operating cash
flows and EBITDA.
2025 2024
$m
$m
Cash flows from operations 33.4 58.8
Transformational costs paid 13.1 9.7
Cash flows from operations before adjusting items 46.5 68.5
2025 2024
$m
$m
Cash flows from operations before adjusting items 46.5 68.5
Adjusted EBITDA 51.5 43.4
Cash conversion 90.3% 157.8%
11 Constant currency reporting
Constant currency measures are calculated by translating the prior period at
current period exchange rates.
2024 2024
constant currency
reported
$m
$m
Orders received 364.7 364.4
Closing order book 226.2 225.2
Revenue 275.9 275.0
Adjusted operating profit 30.8 31.6
Adjusted profit before tax 24.4 25.3
Adjusted basic earnings per share 67.5c 69.9c
12 Scrap (% of revenue)
Scrap (% of revenue) is calculated by dividing the total value of scrap
produced in the period by the revenue generated for the period.
Our mid-term targets are calculated by dividing the total value of scrap
produced in the year by the revenue generated for the 12 month period.
2025 2025 2024 2024
H2
H1
H2
H1
$m
$m
$m
$m
Last 6 months of scrap 1.9 2.0 2.4 2.1
Last 6 months of revenue 165.2 148.7 147.9 127.1
Scrap (% of revenue) 1.15% 1.34% 1.62% 1.65%
2025 2024
$m
$m
Last 12 months of scrap 3.9 4.5
Last 12 months of revenue 313.9 275.0
Scrap (% of revenue) 1.24% 1.64%
13 Inventory turns
Inventory turns measure how many times the inventory was turned over in the
period by dividing adjusted cost of sales over the last 12 months by the
relevant inventory value. Average inventory turns use the 12-month average
month end inventory value.
Adjusted cost of sales excludes $1.1m acceleration of depreciation charges
related to assets held in Irvine (2024: $0.5m), and for the prior year, a
$0.5m plant and machinery impairment (note 3.2).
2025 2024
$m
$m
Year-end inventory 55.5 54.9
Last 12 months adjusted cost of sales 184.1 168.2
Inventory turns 3.32 3.06
2025 2024
$m
$m
12-month average month end inventory 61.8 59.3
Last 12 months adjusted cost of sales 184.1 168.2
Average inventory turns 2.98 2.84
14 Productivity
Productivity measures how much revenue was generated per direct employee by
dividing the revenue over the last 12 months by the relevant number of direct
heads. Direct heads are employees completing manufacturing activities.
2025 2024
Year-end direct headcount 621 539
Last 12 months of revenue $313.9m $275.0m
Productivity $505k $510k
2025 2024
12-month average month end direct headcount 584 553
Last 12 months of revenue $313.9m $275.0m
Average productivity $538k $497k
Consolidated Statement of Comprehensive Income
For the year ended 30 September 2025
Note Year ended Year ended
30 September 2025
30 September
$m
2024
$m
Revenue 2 313.9 275.0
Cost of sales (185.2) (169.2)
Gross profit 128.7 105.8
Sales and marketing expenses (18.2) (16.1)
Research and development costs (13.7) (14.1)
General and administrative expenses (77.6) (64.9)
Operating profit 2 19.2 10.7
Net finance costs 4.3 (6.1) (8.4)
Profit before taxation 13.1 2.3
Taxation (2.8) 0.7
Profit for the year 10.3 3.0
Other comprehensive income/(expense)
Items that are not subsequently reclassified to the income statement
Remeasurement (loss)/gain recognised on retirement benefit scheme (0.9) 19.6
Deferred tax relating to retirement benefit scheme 0.2 (5.0)
Deferred tax relating to other temporary differences 0.3 0.1
Items that may be subsequently reclassified to the income statement
Deferred tax exchange differences offset in reserves 0.1 1.1
Other exchange differences offset in reserves 0.4 (2.9)
Cash flow hedges - (0.8)
Deferred tax relating to cash flow hedges - 0.2
Other comprehensive income for the year 0.1 12.3
Total comprehensive income for the year 10.4 15.3
Earnings per share
Basic 34.9c 10.0c
Diluted 33.6c 9.7c
Consolidated Balance Sheet
At 30 September 2025
Note At 30 September 2025 At 30 September 2024
$m
$m
Non-current assets
Intangible assets 3.1 115.4 126.4
Property, plant and equipment 3.2 42.3 43.7
Finance leases 4.5 5.4
Deferred tax assets 31.4 31.1
193.6 206.6
Current assets
Inventories 55.5 54.9
Trade and other receivables 51.9 36.9
Derivative financial instruments - 0.2
Current tax receivables 0.4 0.3
Cash and cash equivalents 13.4 14.0
121.2 106.3
Current liabilities
Borrowings 4.2 2.8 3.9
Trade and other payables 41.7 36.4
Provisions for liabilities and charges 6.3 6.6
50.8 46.9
Net current assets 70.4 59.4
Non-current liabilities
Borrowings 4.2 78.6 75.5
Derivative financial instruments - 0.2
Retirement benefit obligations 13.8 17.2
Provisions for liabilities and charges 4.9 6.6
97.3 99.5
Net assets 166.7 166.5
Shareholders' equity
Ordinary shares 50.3 50.3
Share premium account 54.3 54.3
Other reserves (15.2) (15.7)
Retained earnings 77.3 77.6
Total equity 166.7 166.5
Consolidated Cash Flow Statement
For the year ended 30 September 2025
Note Year ended Year ended
30 September
30 September
2024
2025
$m
$m
Cash flows from operating activities
Cash flows from continuing operations 4.1 33.4 58.8
Cash flows from discontinued operations - 4.9
Cash flows from operations 4.1 33.4 63.7
Retirement benefit deficit recovery contributions (6.0) (9.1)
Tax paid - (0.7)
Net cash flows from operating activities 27.4 53.9
Cash flows used in investing activities
Purchase of property, plant and equipment(1) 3.2 (8.1) (10.6)
Capitalised development costs and purchased software 3.1 (1.5) (0.6)
Bank interest income 4.3 0.2 0.3
Finance lease interest 4.3 0.3 0.4
Finance lease capital receipts 1.0 1.0
Net cash flows used in investing activities (8.1) (9.5)
Cash flows used in financing activities
Proceeds from loan drawdowns 34.5 100.5
Loan repayments (28.5) (120.7)
Finance costs paid in respect of bank loans and overdrafts (4.6) (6.5)
Finance costs paid in respect of leases (1.1) (0.9)
Repayment of lease liability (3.9) (4.3)
Dividends paid to shareholders 4.6 (7.2) (6.8)
Purchase of own shares - Long-Term Incentive Plan 4.5 (9.1) (5.0)
Net cash flows used in financing activities (19.9) (43.7)
Net (decrease)/increase in cash and cash equivalents (0.6) 0.7
Cash and cash equivalents at the beginning of the year 14.0 13.2
Effects of exchange rate changes - 0.1
Cash and cash equivalents at the end of the year 13.4 14.0
(1) Presented gross of $1.0m grant funding. This was outstanding for payment
at the year end.
Consolidated Statement of Changes in Equity
For the year ended 30 September 2025
Note Share capital Share premium Hedging reserve $m Other reserves Retained earnings Total equity
$m
$m
$m
$m
$m
At 30 September 2023 50.3 54.3 0.8 (13.9) 67.9 159.4
Profit for the year - - - - 3.0 3.0
Net exchange differences offset in reserves - - - (1.8) - (1.8)
Deferred tax relating to other temporary differences - - - - 0.3 0.3
Remeasurement gain recognised on retirement benefit scheme - - - - 19.6 19.6
Deferred tax relating to retirement benefit scheme - - - - (5.0) (5.0)
Interest rate swaps - cash flow hedge - - (0.8) - - (0.8)
Total comprehensive income for the year - - (0.8) (1.8) 17.9 15.3
Dividends paid 4.6 - - - - (6.8) (6.8)
Own shares acquired 4.5 - - - - (5.0) (5.0)
Fair value of share-based payments - - - - 3.3 3.3
Deferred tax relating to employee share schemes charged directly to equity - - - - 0.3 0.3
At 30 September 2024 50.3 54.3 - (15.7) 77.6 166.5
Profit for the year - - - - 10.3 10.3
Net exchange differences offset in reserves - - - 0.5 - 0.5
Deferred tax relating to other temporary differences - - - - 0.3 0.3
Remeasurement loss recognised on retirement benefit scheme - - - - (0.9) (0.9)
Deferred tax relating to retirement benefit scheme - - - - 0.2 0.2
Total comprehensive income for the year - - - 0.5 9.9 10.4
Dividends paid 4.6 - - - - (7.2) (7.2)
Own shares acquired 4.5 - - - - (9.1) (9.1)
Fair value of share-based payments - - - - 4.1 4.1
Deferred tax relating to employee share schemes charged directly to equity - - - - 2.0 2.0
At 30 September 2025 50.3 54.3 - (15.2) 77.3 166.7
Other reserves consist of the capital redemption reserve of $0.6m (2024:
$0.6m) and the translation reserve of $(15.8)m (2024: $(16.3)m).
All movements in other reserves relate to the translation reserve.
Notes to the accounts
1 Basis of preparation
Avon Technologies plc is a public limited company incorporated and domiciled
in England and Wales and its ordinary shares are traded on the London Stock
Exchange.
The financial period presents the year ended 30 September 2025 (prior
financial period: year ended 30 September 2024).
The financial statements have been prepared in accordance with UK adopted
International Accounting Standards. The financial statements have been
prepared under the historical cost convention except for certain items held at
fair value.
The financial information set out above does not constitute the company's
statutory accounts for the years ended 30 September 2025 or 2024. The
financial information for 2024 is derived from the statutory accounts for 2024
which have been delivered to the registrar of companies. The auditor has
reported on the 2025 accounts; their report was (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006. The
statutory accounts for 2025 will be finalised on the basis of the financial
information presented by the directors in this preliminary announcement and
will be delivered to the registrar of companies in due course.
2 Operating segments
The Group Executive Committee is responsible for allocating resources and
assessing performance of the operating segments. Operating segments are
therefore reported in a manner consistent with the internal reporting provided
to the Group Executive Committee. The Group has two different operating and
reportable segments: Avon Protection and Team Wendy.
Year ended 30 September 2025
Avon Protection $m Team Wendy Total Adjustments(1) Total
$m
$m
$m
$m
Revenue 168.8 145.1 313.9 - 313.9
Operating profit/(loss) 33.6 6.7 40.3 (21.1) 19.2
Finance costs (5.4) (0.7) (6.1)
Profit/(loss) before taxation 34.9 (21.8) 13.1
Taxation (8.0) 5.2 (2.8)
Profit/(loss) for the year 26.9 (16.6) 10.3
Basic earnings per share (cents) 91.2c (56.3c) 34.9c
Diluted earnings per share (cents) 87.7c (54.1c) 33.6c
Year ended 30 September 2024
Avon Protection $m Team Wendy Total Adjustments(1) Total
$m
$m
$m
$m
Revenue 145.6 129.4 275.0 - 275.0
Operating profit/(loss) 26.6 5.0 31.6 (20.9) 10.7
Finance costs (6.3) (2.1) (8.4)
Profit/(loss) before taxation 25.3 (23.0) 2.3
Taxation (4.4) 5.1 0.7
Profit/(loss) for the year 20.9 (17.9) 3.0
Basic earnings per share (cents) 69.9c (59.9c) 10.0c
Diluted earnings per share (cents) 67.6c (57.9c) 9.7c
(1) Refer to adjusted performance measures section for a full breakdown of
adjusted measures.
Revenue by line of business
Year ended 30 September 2025 Year ended 30 September 2024
Avon Protection Team Wendy Total Avon Protection Team Wendy Total
$m
$m
$m
$m
$m $m
US DoW 34.8 95.9 130.7 39.6 83.1 122.7
Commercial Americas 31.3 34.7 66.0 40.9 30.2 71.1
UK and International 102.7 14.5 117.2 65.1 16.1 81.2
168.8 145.1 313.9 145.6 129.4 275.0
3.1 Intangible assets
Goodwill Acquired intangibles Development expenditure Computer software Total
$m
$m
$m
$m
$m
Net book amount at 30 September 2023 65.4 45.8 20.2 7.8 139.2
Exchange differences - - 0.1 - 0.1
Additions - - - 0.6 0.6
Impairments - - (1.2) - (1.2)
Reclassification - - (0.3) 0.3 -
Amortisation - (6.2) (3.1) (3.0) (12.3)
Net book amount at 30 September 2024 65.4 39.6 15.7 5.7 126.4
Exchange differences - - 0.1 - 0.1
Additions - - 1.5 - 1.5
Amortisation - (5.7) (3.2) (3.7) (12.6)
Net book amount at 30 September 2025 65.4 33.9 14.1 2.0 115.4
Impairment review of goodwill
Goodwill is tested for impairment annually and whenever there is an indication
of impairment at the level of the CGU to which it is allocated.
The total carrying value of each CGU is tested for impairment against
corresponding recoverable amounts. CGU carrying values include associated
goodwill, other intangible assets, property, plant and equipment, and
attributable working capital.
Goodwill has been allocated to Team Wendy and Avon Protection CGUs. Team Wendy
includes goodwill from the Ceradyne and Team Wendy acquisitions. Avon
Protection goodwill is related to three legacy acquisitions that completed in
2016 and earlier financial periods.
In FY23, the recoverable amount of the Team Wendy CGU was less than the
carrying amount of the associated net assets, resulting in an impairment to
goodwill of $23.4m.
Allocation of goodwill by CGU Cost Impairment Net book amount $m
$m
$m
Avon Protection 2.5 - 2.5
Team Wendy 86.3 (23.4) 62.9
Total goodwill 88.8 (23.4) 65.4
The recoverable amount of the CGUs has been determined based on value in use
calculations, using discounted cash flow projections for a five-year period
plus a terminal value based upon a long-term perpetuity growth rate of 2.5%
(2024: 1.5%). The rate was selected as appropriate based on expected growth
for the protection market.
Value in use calculations are based on the Group's Board approved
risk-adjusted five-year plan which has been amended to exclude the impact of
capital expenditure considered expansionary and certain linked earnings and
cash flows. Excluded expansionary items relate to new helmet programmes which,
although specifically identified and planned, have yet to incur significant
capital expenditure.
Team Wendy CGU
In the current year the recoverable amount of the Team Wendy CGU of $271.0m
was $97.8m higher than the carrying amount of associated CGU net assets (2024:
recoverable value of $202.5m, $29.8m higher than the carrying amount of
associated net assets). Sensitivity analysis and additional information for
the Team Wendy CGU impairment review will be provided in the Annual Report and
Accounts.
Avon Protection CGU
Value in use for the Avon Protection CGU was substantially greater than its
carrying amount in the current and prior periods.
Impairment review of development costs
Development assets are grouped into the smallest identifiable group of assets
generating future cash flows largely independent from other assets, known as
cash-generating units (CGU). Included in CGUs are development expenditure,
tangible assets and inventory related to the product group. CGUs are tested
for impairment annually and whenever there is an indication of impairment.
In the prior year review, the $4.1m carrying amount of the boots and gloves
product range CGU was impaired through adjusting items by $1.7m ($1.2m fully
impairing associated development expenditure, $0.5m plant and machinery),
leaving a remaining carrying amount of $2.4m. The impairment was a result of
changes in forecast cash flows based on latest costing and revenue
assumptions.
In the current year review value in use cash flows support a carrying value of
$2.4m, equivalent to the post-impairment CGU asset balance.
3.2 Property, plant and equipment
Freeholds Right of use lease assets Plant and machinery Leasehold improvements Total
$m
$m
$m
$m
$m
Net book amount at 30 September 2023 1.5 8.5 23.5 2.3 35.8
Exchange differences - 0.3 0.6 - 0.9
Additions - 4.8 8.0 2.6 15.4
Impairments - - (0.5) - (0.5)
Depreciation charge (0.1) (2.7) (4.5) (0.6) (7.9)
Net book amount at 30 September 2024 1.4 10.9 27.1 4.3 43.7
Additions - - 7.0 0.1 7.1
Lease term adjustments - (0.3) - - (0.3)
Depreciation charge (0.1) (2.5) (5.2) (0.4) (8.2)
Net book amount at 30 September 2025 1.3 8.1 28.9 4.0 42.3
In the prior year right of use assets increased by $4.8m to recognise
extension options considered reasonably certain. In FY25 these extension
options were all exercised. Some of the agreed extensions included revised
commercial terms, resulting in a reduction in right of use assets, and
corresponding lease liabilities (note 4.4), of $0.3m.
2025 additions are shown net of $1.0m grant funding. This was outstanding for
payment at the year end.
4.1 Cash flows from operations
2025 2024
$m
$m
Continuing operations
Profit for the year 10.3 3.0
Taxation 2.8 (0.7)
Depreciation 8.2 7.9
Amortisation of intangible assets 12.6 12.3
Impairment of other non-current assets - 1.7
Defined benefit pension scheme cost 0.9 1.1
Net finance costs 6.1 8.4
Fair value of share-based payments 5.8 3.3
Transformational costs expensed(1) 11.5 10.8
(Increase)/decrease in inventories (0.6) 0.3
Decrease/(increase) in receivables (14.1) 17.2
Increase/(decrease) in payables and provisions 3.0 3.2
Cash flows from continuing operations before adjusting items 46.5 68.5
Transformational costs paid (13.1) (9.7)
Cash flows from continuing operations 33.4 58.8
(1) Transformational costs expensed exclude amortisation and depreciation (see
APMs section).
4.2 Borrowings
2025 2024
$m
$m
Current
Lease liabilities 2.8 3.9
Non-current
Bank loans 63.5 57.5
Lease liabilities 15.1 18.0
78.6 75.5
Total Group borrowings 81.4 79.4
Bank loans comprise drawings under the revolving credit facility (RCF).
The Group had the following committed facilities at the balance sheet date:
2025 2024
$m
$m
Overdraft facility 3.0 3.0
Total undrawn committed borrowing facilities 73.5 79.5
Bank loans utilised 63.5 57.5
Total Group facilities 140.0 140.0
On 14 May 2024 the Group signed a $137m RCF, together with a $50m accordion
replacing the previous facility. The RCF was agreed with a syndicate of four
lenders and is available until May 2028, having been extended during the year
(previously until May 2027). The RCF has a further one-year extension option
to May 2029 subject to lender approval.
The RCF is subject to financial covenants measured on a bi-annual basis. These
include a limit of 3.0 times for the ratio of net debt, excluding lease
liabilities, to bank-defined adjusted EBITDA (leverage). The Group was in
compliance with all financial covenants during the current and prior years.
In addition to the RCF the Group's US operations have access to a $3.0m
overdraft facility that is renewed annually and used to manage short-term
liquidity requirements.
4.3 Net finance costs
2025 2024
$m
$m
Interest payable on bank loans and overdrafts (4.2) (5.4)
Interest payable in respect of leases (1.1) (0.9)
Amortisation of finance fees (0.4) (0.7)
U.K. defined benefit pension scheme net interest expense (0.7) (2.1)
Other interest payable (0.2) -
Bank interest income 0.2 0.3
Finance lease interest 0.3 0.4
Net finance costs (6.1) (8.4)
4.4 Analysis of net cash/(debt)
At 30 September 2024 Cash flow Non-cash movements Exchange movements At 30 September 2025
$m
$m
$m
$m
$m
Cash and cash equivalents 14.0 (0.6) - - 13.4
Bank loans (57.5) (6.0) - - (63.5)
Net debt excluding lease liabilities (43.5) (6.6) - - (50.1)
Lease liabilities (21.9) 5.0 (1.0) - (17.9)
Net debt (65.4) (1.6) (1.0) - (68.0)
At 30 September 2023 Cash flow Non-cash movements Exchange movements At 30 September 2024
$m
$m
$m
$m
$m
Cash and cash equivalents 13.2 0.7 - 0.1 14.0
Bank loans (77.7) 20.2 - - (57.5)
Net debt excluding lease liabilities (64.5) 20.9 - 0.1 (43.5)
Lease liabilities (20.9) 5.2 (5.7) (0.5) (21.9)
Net debt (85.4) 26.1 (5.7) (0.4) (65.4)
4.5 Own shares held - Long-Term Incentive Plan
2025 2024
Number of shares
Number of shares
Opening balance 555,205 261,714
Acquired in the period 494,650 301,947
Disposed of on exercise of options (105,045) (8,456)
Closing balance 944,810 555,205
These shares are held in trust in respect of awards made under the Group's
Long-Term Incentive Plan. Dividends on the shares have been waived. The market
value of shares held in trust at 30 September 2025 was $27.0m (30 September
2024: $9.1m). The shares are held at cost as treasury shares and deducted from
shareholders' equity.
Own shares held - Share Buyback Programme
2025 2024
Number of shares
Number of shares
Opening balance 765,098 765,098
Acquired in the period - -
Closing balance 765,098 765,098
In 2022 the Group completed a £9.25m ($12.4m) Share Buyback Programme,
purchasing 765,098 ordinary shares. Dividends on these shares have been
waived. Purchased shares under the programme are held at cost as treasury
shares and deducted from shareholders' equity.
4.6 Dividends
On 31 January 2025, the shareholders approved a final dividend of 16.1c per
qualifying ordinary share in respect of the year ended 30 September 2024. This
was paid on 7 March 2025 utilising $4.9m of shareholders' funds.
The Board of Directors declared an interim dividend of 7.6c (2024: 7.2c) per
qualifying ordinary share in respect of the year ended 30 September 2025. This
was paid on 5 September 2025 utilising $2.3m (2024: $2.2m) of shareholders'
funds.
The Board is recommending a final dividend of 17.0c per share (2024: 16.1c)
which together with the 7.6c interim dividend gives a total dividend of 24.6c
(2024: 23.3c). The final dividend will be paid on 6 March 2026 to shareholders
on the register at 6 February 2026 with an ex-dividend date of 5 February
2026.
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. END FR BRBDBIXBDGUB
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