REG - Avon Technologies - Q2 trading update

Avon TechnologiesAnnouncement

26/03/2025 07:16

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250326:nRSZ1432Ca&default-theme=true

RNS Number : 1432C  Avon Technologies Plc  26 March 2025

26 March 2025

Avon Technologies plc

("Avon" or the "Group")

 

Q2 trading update

Upgrade to full-year expectations

Avon Technologies plc today provides an update on trading for the first six
months of the financial year and an upgrade to full-year expectations.

 

Strong trading momentum has continued through the second quarter, with revenue
growth at Team Wendy driven by the planned ramp up of ACH Gen II helmets to
the US DOD and good sales growth in Avon Protection across FM54 respirators
and underwater rebreathers. This has driven a strong performance for the Group
overall, with financial results for the six months ended 31 March 2025
expected to show good growth over the prior year.

 

In addition, Avon Protection has received two new European NATO orders for
personal respirators for delivery to the Armed Forces of Ukraine. The first
order is for FM50 respirators, and the second is for C50 protective masks.
Both orders are for delivery in calendar year 2025 with some deliveries
expected to be completed early in FY2026.

 

Avon Protection has also signed a new framework contract from two European
Navies for its MCM100 Multi-Role Rebreather, with quantities and delivery
schedule to be finalised. The contract is a joint approach between these
nations for MCM100 rebreather systems, related accessories, training, and
maintenance and support under a 12-year program.

 

Overall, additional demand will result in FY2025 revenue growth being higher
than previously expected.

 

In Avon Protection, revenue growth, mix and continuous improvement are all
supporting strong operating profit margins. In Team Wendy, as expected, the
costs associated with ramping up production and closing our Californian
factory will impact H1 but we remain confident that Team Wendy will exit
FY2025 with stronger profit margins into FY2026. Overall, we expect better
than originally guided operating profit margins in the current year.

 

The production ramp up of delivery volumes to the US DOD in Team Wendy remains
both a risk and an opportunity. We remain focused on successfully ramping up
production, mitigating risks and realising the opportunities for further
margin expansion.

 

FY2025 Outlook

Avon Technologies plc is therefore issuing the following update to FY2025
guidance:

·    Revenue growth in excess of 10% (previous guidance: mid-single digit)

·    Group adjusted operating profit margin above 12% (previous guidance:
c.11.5%)

·    All other FY2025 guidance remains unchanged

 

Notice of HY2025 Results

HY2025 Results are due to be released on 21 May 2025. Jos Sclater, Chief
Executive Officer and Rich Cashin, Chief Financial Officer, will host a
presentation for investors and sell-side analysts at 09:00 on the morning of
21 May.

Jos Sclater, CEO of Avon Technologies plc, said:

"We are proud of the contribution that Avon continues to provide to the
security of NATO nations. The additional orders for provision of respiratory
protection to Ukrainian war fighters and rebreathers for military divers
allows both users to operate with confidence, knowing they are protected
against increasingly prevalent threats in the harshest and most demanding
environments."

"We continue to deliver in accordance with our STAR strategy.  Our growing
order book, progress closing our California facility and the culture,
capability change and pace we are seeing as we implement continuous
improvement across the Group all give us confidence for the medium term and
beyond."

 

For further enquiries, please contact:

 Avon Technologies plc
 Jos Sclater, Chief Executive Officer             +44 1225 896 848
  Rich Cashin, Chief Financial Officer
  Gabriella Colley, Corporate Affairs Director

 Sodali & Co
 Pete Lambie                                      +44 7855 432 699

                                                 avonprotection@sodali.com (mailto:avonprotection@sodali.com)
 James White

About Avon Technologies plc:

Avon Technologies plc make products that are trusted to protect the world's
militaries and first responders. Our mission-critical systems enhance our
customers' performance, efficiency and capability, whilst providing
ever-increasing levels of protection.

We are renowned for our innovative thinking and our steadfast approach to
manufacturing unrivalled products. Our portfolio includes Avon Protection
which provides respiratory and protective systems and Team Wendy who supply
helmet systems.

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

 

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation ("MAR")
(EU) No. 596/2014, as incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement via
Regulatory Information Service ("RIS"), this inside information is now
considered to be in the public domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTKELFLEXLXBBB