REG - Avon Technologies - Interim Results
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260513:nRSM0491Ea&default-theme=true
RNS Number : 0491E Avon Technologies Plc 13 May 2026
For Immediate Release
13 May 2026
AVON TECHNOLOGIES PLC
("Avon Technologies", "Avon" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2026
TRANSFORMATION DELIVERING.
FOCUSING ON GROWTH.
Change
31 March 2026 31 March 2025 (constant currency)(3)
Group
Orders received $117.9m $170.5m (31.6%)
Closing order book $219.9m $247.0m (11.4%)
Revenue $160.8m $148.7m 6.8%
Adjusted(1) operating profit $24.4m $17.5m 39.4%
Adjusted(1) profit before tax $21.8m $14.8m 47.3%
Adjusted(1) basic earnings per share 56.4c 38.8c 45.4%
Interim dividend per share 8.1c 7.6c 6.6%
Net debt excluding lease liabilities $58.0m $54.9m 5.6%
Statutory results
Operating profit(2) $16.5m $6.2m
Profit before tax $13.5m $3.1m
Basic earnings per share 35.0c 8.1c
Net debt $74.2m $74.7m
Strong H1 performance
· Delivered medium-term targets for growth, margin, ROIC and leverage
18 months early
· Improved commercial and manufacturing execution plus increased
reliability of Cleveland production rates driving group margin into target
range
· Lower closing order book due to timing of DoW(4) orders and temporary
weakness in US commercial helmet demand in Team Wendy. DoW(4) follow-on orders
expected towards the end of this calendar year. Recovery in US commercial
helmet demand expected in H2.
Heightened global threat driving demand
· Number of active conflict zones at its highest level since the end
of World War II
· Product upgrade & replenishment demand driven by threat
environment and increasing military personnel
Strategy advancing from transformation to growth focus
· Continuous improvement driving increased efficiency, reliability
and cost advantage
· Cleveland site delivering DoW(4) contractual rates with improving
reliability and operating leverage drop-through
· Long term visibility of core programmes and exciting progress
diversifying into new and adjacent growth markets:
o Received multi-year MITR contract from the Canadian Armed Forces
o $14m DoW(4) filter order received post period end
o New Middle East military order received for upgraded 'EXFIL Endurance'
helmet post period end
· Ambitious product development pipeline and M&A framework to
drive next stage of growth
Firmly on track to meet or exceed FY26 guidance with exciting long-term growth
prospects
· Increasingly confident in H2 delivery with strong commercial and
international pipelines
· Still see significant operational improvement opportunities in both
businesses
· Clear pipeline of opportunities to outperform core markets and
deliver sustainable growth
· New mid-term growth targets to be set out with FY26 results
Jos Sclater, Chief Executive Officer, commented:
"We delivered a strong first half performance, with revenue, profit and margin
all up significantly, reflecting the long-term demand opportunity in our
markets and the progress we have made in strengthening our operational
execution.
Since we launched our STAR strategy three years ago, we have focused on
building a stronger, more reliable business underpinned by a culture of
continuous improvement. Our Strengthen System is improving execution, creating
capacity, and generating cash and we are advancing with confidence from
stabilisation to growth.
Against a rapidly changing geopolitical backdrop, demand across our installed
base is increasing and our markets continue to grow. We have strong brands and
sales channels, long‑term growth visibility and an exciting development
pipeline to support expansion internationally and into adjacent markets. We
are increasingly confident in sustaining and continuing to deliver growth
ahead of our core markets. We look forward to setting out new mid‑term
targets at the end of the financial year to underpin our next stage of
growth."
For further enquiries, please contact:
Avon Technologies plc
Jos Sclater, Chief Executive
Officer
Rich Cashin, Chief Financial
Officer
investor.relations@avon-technologiesplc.com
(mailto:investor.relations@avon-technologiesplc.com)
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_HY26 (https://brrmedia.news/AVON_HY26)
A presentation for retail investors will be held on 15 May at 12.00pm BST.
Registration is available on the following link:
https://www.investormeetcompany.com/avon-technologies-plc/register-investor
(https://www.investormeetcompany.com/avon-technologies-plc/register-investor)
Notes
(1) The Directors believe that adjusted measures provide a useful comparison
of business trends and performance. Adjusted results exclude adjusting items
and discontinued operations. The term adjusted is not defined under IFRS and
may not be comparable with similarly titled measures used by other companies.
(2) Reported HY26 operating profit includes $2.8m amortisation of acquired
intangibles and transformation costs of $5.1m. See adjusted performance
section 2.1 for full breakdown of adjustments and comparatives.
(3) Constant currency measures are provided in note 2.1.
(4) United States Department of War
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
The Group delivered a strong start to FY26, with revenue, profit and margin
all up materially year-on-year.
The closing order book stood at $219.9m (HY25: $247m). At Team Wendy,
deliveries across the NG IHPS and ACH programmes reduced the order book, while
temporary softness in US commercial orders reflected US government
shutdown‑related funding delays. This was partially offset by Avon
Protection, where the order book grew 19% year‑on‑year due to US
Commercial demand through emergency funding channels and NSPA demand.
We continue to operate in an increasingly high‑threat global environment,
shaped by heightened geopolitical tensions, increased gun crime and rising
defence investment. In the near term, demand is being driven by the conflicts
in Ukraine and the Middle East, which have highlighted both the continued
relevance of conventional warfare and the growing risks associated with
chemical weapon threats. Longer-term, increased European investment in defence
capabilities as Europe enters a rearmament cycle and shifts in the US's
approach to NATO are supporting demand.
Against this backdrop, Avon Protection is seeing strong customer interest in
improved integration of CBRN equipment and upgrades to mask fleets, as users
transition from a focus on "survive" to "survive and fight." At Team Wendy,
demand for advanced ballistic protection helmets from the US military remains
strong. Whilst demand from US police and federal agencies was softer in the
first half due to funding delays, we expect this to recover in the second half
of the year and are confident in our ability to deliver an increased
throughput in our manufacturing sites.
Group revenue increased 6.8% at constant currency to $160.8m (HY25: $148.7m).
Avon Protection delivered excellent growth of 23%, supported by NATO mask
orders and US law-enforcement upgrades. Team Wendy revenue was impacted by a
backlog in ballistic testing, caused by the US government shutdown, which
delayed acceptance of DoW orders.
Adjusted operating profit rose 39.4% to $24.4m, driving a 340bps increase in
adjusted operating margin to 15.2%, well into the Group's target range of
14-16%. Avon Protection delivered an adjusted operating margin of 22.3%,
benefitting from a particularly favourable sales mix, together with operating
leverage and disciplined commercial execution. Team Wendy operating margin
improved to 5.4%, reflecting the benefits of site optimisation and improving
production performance in Q2, despite lower revenue.
Adjusted basic earnings per share increased 45.4% to 56.4 cents, reflecting
the strong uplift in operating profit. Net debt excluding lease liabilities
increased to $58m (HY25: $54.9m). This was primarily due to sales phasing,
with $18m of cash from Team Wendy's DoW shipments in March received a week
post period end. Leverage remains comfortably below 1x with significant
liquidity headroom and optionality for growth maintained.
Return on invested capital increased to 20.8% (HY25: 16.3%), exceeding the
Group's medium‑term target of more than 17%, driven by both higher operating
profit and improving capital efficiency.
OPERATIONAL SUMMARY
Our STAR strategy was launched three years ago and set out the strategic
priorities required to achieve our medium-term goals of at least 5% revenue
CAGR, adjusted operating profit margin 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 committed to achieving competitive advantage through our Strengthen
System. We see our competitive edge in reliable delivery, short lead times and
improving quality, while also driving higher capital efficiency than our
competitors.
1. Strengthen - Increased efficiency and reliability providing cost
advantage
Our 'Strengthen System' builds continuous improvement capability across the
Group to drive sustained improvements in Safety, Quality, Delivery, Inventory
turns and Productivity.
We see our Strengthen System as a source of enduring competitive advantage. It
is hard for competitors to replicate because the improvements keep
compounding: every day we get better. Both business units have embedded the
system, with all production lines flowing, standard work at every station,
visual management in place, global CI training and regular Kaizen activity at
all sites. As capability builds, the pace of improvement accelerates. We see
this clearly in Avon Protection, which is further advanced in its CI journey
and where kaizens are now driving the next wave of improvements. When
leadership, culture and capability are sustained, the benefits of CI are
exponential.
Our Strengthen System is deliberately focused on both people and process. Over
the past six months, we have increased our emphasis on developing people
capability, taking a different approach to many organisations. Our new
development programmes have been designed and delivered by senior leaders, not
consultants or HR. We believe it is better to teach our people how to solve
problems than to give them the answers. These programmes reinforce our broader
business improvement system and support disciplined strategy execution and
continuous improvement.
Operational KPIs:
Productivity: Since launching our operational targets three years ago. Group
average labour productivity has increased by 44%, well ahead of our 35%
target. This reflects improved flow, tighter people planning and more
disciplined execution.
Group average productivity improved 2% in HY26 vs HY25, with Q1 performance
affected by the US government shutdown and recruitment ahead of higher
production rates in Q2. This resulted in a productivity decline in Q1, offset
by a recovery in Q2.
Scrap: Scrap as a percentage of revenue has reduced by over 62% vs our H1 2023
target of 60% reduction, demonstrating the impact of better quality and
process control, with benefits for margin, cash and customer confidence.
H12026 scrap performance was a similar level to the prior year due to a
supplier issue in Avon Protection and Team Wendy largely focusing on
increasing production rates. We expect to see scrap reduce further in the
second half.
Average inventory turns: Group average inventory turns are now 3.0x, a 6%
improvement on H1 2023 but flat year-on-year reflecting higher inventory
levels required to support significant production increases in both business
units. While we still have work to do, the direction of travel is positive.
Avon Protection has already achieved turns of 4x.
Overall, we see real progress, meeting two out of three of our operational
targets 18 months early. There is more to do, particularly at Team Wendy once
we have proven that the increased production rates are sustainable. These
trends however demonstrate that the operational foundation is strengthening
and our continuous improvement targets are achievable.
2. Transform: Improving execution and confidence in Cleveland
FY26 is the last year of exceptional transformation costs with the focus over
the past six months on the two remaining projects: Improving production
reliability in Cleveland and restructuring our IT function to support faster
operational improvements and reduce costs. We are increasing the use of AI to
amplify software development, support materials science innovation, and reduce
repetitive activity.
We also successfully removed the SAP ERP system from one remaining plant in Q1
26, which will save us over $1m a year.
Expected total transformational investment in FY26 is unchanged at around $7m
with an expected higher weighting towards operational expenditure and lower
capital spend.
Team Wendy DoW production increase and improved reliability on Commercial
lines:
Over the past two years we have built a completely new factory in Cleveland
and scaled the Team Wendy business. This has been challenging, but the actions
taken through "Project Ramp" to improve reliability, reduce variability and
ease pressure on our people are now translating into tangible and measurable
progress.
Production increased significantly in Q2, with both IHPS and ACH now
delivering at the contractually agreed production rates. In Q2, a 80% increase
in ACH output versus September 2025 drove an improvement in operating margin,
illustrating the operating leverage in the business as volumes ramp. In the
last month of H1 we exceeded the contractual monthly delivery rate on ACH,
strengthening our position for future delivery orders.
Output is now stabilising and our focus has shifted to delivering consistently
week‑in, week‑out. This consistency is critical for customers and
suppliers and supports margin progression as operational volatility reduces.
We have made leadership changes in Cleveland and established focused
workstreams to address the root causes of volatility across production
planning, machine reliability, quality and supply chain execution. These
actions are improving day‑to‑day execution, increasing employee engagement
on the shopfloor and building confidence across the operation.
Progress to date gives us increased confidence that operational performance
will continue to strengthen as reliability improves and the organisation fully
stabilises. Importantly, by demonstrating our operational capability on both
DoW programmes, we are well positioned to win further work.
3. Advance: Exciting progress growing the core and diversifying into new and
adjacent growth markets
The Advance part of our STAR strategy aims to deliver organic growth through
investment in short and medium-term growth opportunities.
Group sales function: We have significantly strengthened the sales
organisation through targeted investments in coverage and capability led by
our VP of Sales. The outcome is better customer coverage, stronger pipeline
visibility, and improved conversion.
In the US, we have improved focus and market penetration. Internationally, we
hired a dedicated sales director to lead Latin America for both businesses,
with improved pipeline visibility already emerging. In parallel, we added
dedicated sales directors in the Middle East and Asia Pacific, expanding our
reach and opportunity set while enabling the current European sales director
to concentrate on high‑value strategic initiatives such as NSPA (NATO
Support and Procurement Organisation) and EDA (European Defence Agency), and
other larger programmes.
Avon Protection:
Order book - We continue to see strong demand for our respiratory products
with a 19% increase in order book, without any new Ukraine related orders.
Highlights include:
· Growing demand across our existing NSPA customers plus two new
countries added. We now have 16 countries ordering from our NATO framework
contracts.
· NATO CBRN boots and gloves contract ceiling value increased by 50% to
accommodate for growing European demand as nations re-arm in the face of a
growing threat landscape.
· A $13m filter order from the Middle East with a growing pipeline of
opportunities.
· Increased demand from US law enforcement, through emergency funding
channels, as they prepare for heightened operational demand driven by civil
disruption and the FIFA world cup.
· Secured multi-year contract with Canadian Armed Forces for the MITR
mask. This is the first five-eyes nation to adopt MITR with others expected to
follow.
Post period close, we were also very excited to have won 100% of the latest
DoW order for filters, with an order worth $14m, supporting our long‑term
installed base and providing additional revenue visibility into the second
half and FY2027.
Alongside this order book growth, we have several exciting opportunities
currently in our pipeline:
· A new digital voice projection unit has been designed to improve
clarity and intelligibility in challenging operating environments, which is
already on trial with a European customer and has a substantial pipeline of
opportunities ahead of our launch later this year.
· CS-PAPR SD: Good levels of interest in our recently launched
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. We expect to soon receive
independent European certification, opening up a broader opportunity space in
the growing European market.
· A full riot solution for MITR is due to launch later this year with a
riot filter and updated goggles designed to improve operator performance.
Our half mask also received independent certification for both US and
European markets in the first half of this year, demonstrating its leading
capability and opening wider law enforcement and first responder markets where
product certification is required.
· EXOSKIN suits: We have been successfully down selected to take part
in competitive trials for the DoW NG IPE suits program with several hundred
suits ordered by the DoW. We continue to work on building a robust supply
chain to support this opportunity and we have had strong customer engagement
and feedback around our solutions.
· Rebreathers: The French Navy cancelled their rebreather bid process.
However, we are working on opportunities with the Royal Australian Navy, the
US Navy, UK Royal Navy, and the US Marines. We expect to make progress through
FY27 on these.
Team Wendy:
Order book - Team Wendy's order book declined by 30% vs HY25. This reflects
strong delivery on our DoW NG IHPS and ACH Gen II programs and improved
commercial lead times which reduced the backlog of orders. Commercial orders
have also been held back due to delays in government funding although there
are signs that this is starting to ease. Order book highlights include:
· Demand for both NG IHPS and ACH Gen II remain solid with order cover
into FY27.
· Ongoing demand for helmet pads and liner systems from the US Army and
Marine Corps.
· RIFLETECH continues to perform well with strong commercial interest,
including with US police forces, e‑commerce growth and a robust opportunity
pipeline.
Our largest ever pipeline of commercial orders gives us confidence for the
second half of 2026. Recent media reports indicate the US Department of
Justice is preparing up to $3.5bn of law enforcement grant funding, a year
after steep cuts, which could provide further support for US domestic law
enforcement demand.
We also have an exciting pipeline of product launches and upgrades:
· US DoW: We expect additional DoW orders will start to come through
towards the end of this calendar year. Rapidly improving contractual
performance across quality, delivery and reliability positions us well for
these opportunities and for the follow‑on ACH contract. In a competitive
environment, this execution capability is a key differentiator and underpins
continued investment in scale, cost efficiency and operational resilience.
· RECON Tactical Bump Helmet launch: We carefully listened to our
customers and see opportunities for this new helmet with the US Navy, the US
Coastguard, search and rescue and NATO militaries. This bump helmet is
designed to achieve a triple rating against combat, mountaineering and
whitewater standards and is by far the most comfortable in the market with
these certifications. We expect this helmet to drive growth in 2027 and
beyond - we received our first order for RECON on the first day of launch
which shows the exciting potential of this product.
· EXFIL portfolio: Demand is building with EXFIL deployments to the
Australian Defence Force continuing and increasing international interest. We
also continue to improve ballistic protection levels across our commercial
portfolio and will be launching 'EXFIL Endurance' later this year. This helmet
will have our latest cooling pad technology to support extended wear, and our
no thru-hole attachment system delivering higher ballistic protection at a
lower weight. The result is greater protection, greater flexibility and better
comfort. We have already received an order for the EXFIL Endurance from a
Middle East military customer and are seeing promising levels of early
interest.
4. Revolutionise: Investing for the future with new products and M&A
Revolutionise underpins our ambition to create new growth platforms through
breakthrough innovation, new addressable markets and M&A which fits our
criteria. In the first half we invested a total of $6.5m in R&D, including
capitalised, expensed and customer funded spend (HY25: $6.2m). This
represented 4.0% of revenue for the period (HY25: 4.2%).
Avon Protection
We are focused on growing ahead of the market by doing what we do best:
protecting and expanding our installed base, executing upgrades at pace, and
investing selectively in adjacent opportunities where we see clear demand and
strong returns.
CBRN respiratory: CBRN respiratory remains the foundation of Avon Protection.
We have a strong, long‑standing installed base, supported by reliable
delivery and long‑life aftermarket revenues.
We are working closely with the US DoW to bring the M50 and M53A1 contracts
together, sustaining the future US military capability. We are actively
engaged on mid-life updates which deliver material improvements in the overall
weight carried by the soldier and enhances their effectiveness in a combat
environment. This creates a compelling upgrade opportunity to a more modern
M53 like system for what is now an ageing installed M50 base.
Importantly, this positions us well for the next generation respirator, with
M50 and M53 expected to remain in service at scale until that comes through.
This gives us continuity, volume and strong visibility through the transition
period.
We are also progressing several development projects, including
next‑generation filter development for changing user needs and threats,
including the removal of PFAS (a group of man-made chemicals) while reducing
the physical load on the soldier.
Non‑CBRN respiratory: Growth is being driven by the expansion of MITR into
adjacent military and law‑enforcement applications.
MITR continues to gain traction as a lightweight, modular platform, enabling
customers to tailor protection through accessories and upgrades while
benefiting from a common core system. Our focus is on expanding the
addressable market for MITR through broader use cases, increased accessory
adoption and targeted sales and marketing investment.
Integrated CBRN: We are fast moving beyond individual products and becoming a
genuine full CBRN ensemble provider.
The lightweight EXOSKIN suit range is an important step forward, reducing
thermal burden, improving mobility and allowing operators to perform for
longer in highly demanding combat environments. For the past two-years our
suit has been voted by the US user community as their most preferred piece of
future CBRN equipment during CBRN experimentation events.
The hood-mask interface (HMI) is another key piece. Being selected as the
single source partner on this programme builds credibility in ensemble
integration and positions us at the centre of the system. Our HMI solution is
today receiving the CWMD (Countering Weapons of Mass Destruction) Innovation
Prototype Award by the US DoW.
Underwater respiratory: We continue to build on our leadership position in
this market. Avon remains the global leader in deep‑sea rebreathers,
supported by a strong accessories' portfolio and long‑term aftermarket
revenues.
We have also developed a prototype combat rebreather, targeting the larger
shallow and mid‑depth combat rebreather market. This creates a clear
opportunity to take share in an adjacent, higher‑volume segment, supported
by complementary rebreather capabilities.
Team Wendy
Team Wendy is investing for long‑term growth by deepening its position in
core US Department of War ("DoW") programmes, while expanding into adjacent
markets through disciplined execution, technology investment and targeted
commercial focus.
NG IHPS and ACH Gen II: US DoW programmes remain central to Team Wendy's
growth strategy. NG IHPS sits at the core of the portfolio. The current
programme is performing strongly and is expected to transition into the third
generation IHPS, which Team Wendy is actively helping to shape. This
development work, combined with a steadily improving delivery and quality
track record, strengthens an established DoW relationship and extends it well
into the next decade.
Looking further ahead, ACH and IHPS, together with future variants, are
expected to run well into the 2030s, supported by sustainment, conversion and
expansion opportunities.
North America First Responders: In North America First Responders, Team Wendy
is gaining share. Investment in the sales force, expanded Headstrong product
demonstrations, shorter lead times and portfolio expansion are increasing
customer engagement and accelerating adoption.
International markets: Internationally, targeted sales investment, optimised
dealer networks and products tailored specifically for European requirements
are showing encouraging early signs. A clearer geographic focus and
disciplined channel management are improving effectiveness and positioning the
business for continued expansion. We are seeing good levels of traction in
international markets with European and Middle East military orders expected
in 2026.
Technology investment and future capability: Team Wendy continues to invest in
long‑term growth opportunities, often in close partnership with customers.
The DoW is currently assessing the RIFLETECH helmet as part of its research
into 3(rd) generation IHPS requirements, with 100 units ordered for
evaluation. In parallel, the business is developing solutions to increase
ballistic protection into our military and commercial ranges and to integrate
power, data, night vision and hearing protection into the helmet. We are also
developing a revolutionary new blast impact pad system, recognising that
future requirements are likely to extend further into integrated protection.
M&A FRAMEWORK
M&A is an important part of Avon's strategy to create long-term
shareholder value. Our long‑term ambition is to compound value by acquiring
businesses in our core markets or close adjacencies and improving them through
the application of our Strengthen System. We target opportunities that
strengthen our existing platforms in respiratory, CBRN, helmets and integrated
systems, where we can enhance technology, expand geographically or vertically
integrate, and deliver returns above our cost of capital.
We remain disciplined in our approach. We are not in a hurry and recognise
that valuations across parts of the defence sector are elevated. We will
continue to be selective, focusing on businesses with strong strategic fit,
scalable products and clear margin and execution upside. We are prepared to
keep capital available until the right opportunity arises.
H2 RISKS & OPPORTUNITIES
Risks:
Supply chain capacity risk is lower than six months ago, but parts of our
supply chain are still adjusting to higher production rates; we are working to
improve reliability and capacity with these key suppliers.
Freight and input costs: If the current situation in the Middle-East continues
then raw materials and freight are likely to increase in cost, which we will
seek to mitigate through pricing.
Opportunities:
Upside demand: Earlier than expected pipeline conversion in both businesses
could exceed our current forecasts. We are increasing capacity through
continuous improvement to ensure we can respond.
Higher operational gearing in Cleveland: Opportunity for further margin
expansion as we sustain and improve execution.
HY26 SUMMARY - Advancing to growth
In H1 2026 we achieved our targets for growth, margin, return on invested
capital and leverage, originally set for 2027, 18 months ahead of plan. Cash
conversion was impacted by timing of customer receipts, with $18m received
shortly after the half‑year end, which would otherwise have resulted in
conversion around 100%.
Margin continues to improve, with Team Wendy's returns materially improving in
Q2. We have already delivered a significant step‑change in performance,
while remaining early in the improvement journey. We are on track to deliver
an adjusted operating margin towards the upper end of the target range of
14-16% in FY2026.
With stabilisation largely complete, the Group is now advancing firmly towards
growth. We look forward to setting out updated medium‑term targets at the
end of the financial year.
OUTLOOK - Increasingly confident of delivery with exciting opportunities ahead
Momentum is expected to continue as operational improvements further embed and
production is increasingly aligned to demand. Our Strengthen System continues
to sharpen our competitive advantage, improving performance, freeing up cash
and enabling us to reinvest with discipline to support sustainable growth.
Our end markets remain highly attractive. In Avon Protection, rising defence
spending across Europe and recent new country wins are creating a strong
pipeline into FY27. In Team Wendy, we see continued share gains in the US
commercial market, increasing international opportunities and ongoing delivery
of programmes for the US DoW. Across the Group, a strengthened sales
organisation is supporting deeper customer engagement, portfolio expansion and
new programme wins.
We continue to defend and extend our core portfolio while selectively
diversifying into adjacent and new markets where we see clear demand and
attractive returns. Our large and growing installed base across respirators
and helmets supports recurring aftermarket revenue, while a strong order book
provides visibility and underpins operational leverage as volumes grow.
We have consistently grown ahead of our core markets since setting out the
STAR strategy three years ago and remain confident that this momentum can be
sustained. With proven execution, long‑term contracts with strong customer
relationships, leading technology and a scalable business improvement system
that can be applied to acquired businesses, the Group enters the next phase of
growth with a strong competitive position and clear pipeline of opportunities.
2026 FINANCIAL GUIDANCE
The outlook for the year remains robust. Our strong order book and pipeline of
commercial opportunities are expected to convert to orders in the coming
months as procurement activity for the US Department of Homeland Security
(DHS) re‑opens.
Group margin is expected to be supported by commercial and operational
efficiency initiatives, improved operating leverage, footprint optimisation
benefits and the ongoing benefits of the Strengthen System. These tailwinds
are partly offset by continued headwinds from US healthcare costs and UK
national insurance changes.
As such, the Group expects to deliver in FY2026:
· Revenue growth: High single-digit
· Adjusted operating profit margin: Towards the top end of the 14-16%
range
· Total transformation operating and capital expenditure: $7m
· Cash conversion: Above 80%
FINANCIAL REVIEW
We have seen very strong financial performance, with adjusted operating profit
margin well into our target range 18 months ahead of plan. Revenue has
increased by 6.8% on a constant currency basis to $160.8m (HY25: $148.7m),
reflecting strong US commercial demand through emergency funding channels and
fulfilment of Ukraine related orders in Avon Protection, partially offset by
the impact of the US shutdown on Team Wendy. The closing order book of $219.9m
was 11% lower on a constant currency basis, reflecting timing of orders for
Team Wendy offset by growth in Avon Protection.
31 March 2026 31 March 2025 Change Change (constant currency)(2)
Period ended:
Orders received $117.9m $170.5m (30.9%) (31.6%)
Closing order book $219.9m $247.0m (11.0%) (11.4%)
Revenue $160.8m $148.7m 8.1% 6.8%
Adjusted(1) operating profit $24.4m $17.5m 39.4% 39.4%
Adjusted(1) operating profit margin 15.2% 11.8% 340bps 340bps
Adjusted(1) net finance costs $(2.6)m $(2.7)m (3.7%) (3.7%)
Adjusted(1) profit before tax $21.8m $14.8m 47.3% 47.3%
Adjusted(1) taxation $(5.2)m $(3.3)m
Adjusted(1) profit after tax $16.6m $11.5m 44.3% 44.3%
Adjusted(1) basic earnings per share 56.4c 38.8c 45.4% 45.4%
Interim dividend per share 8.1c 7.6c 6.6%
Net debt excluding lease liabilities $58.0m $54.9m 5.6%
Cash conversion(1) 38% 56%
Return on invested capital(1) 20.8% 16.3%
Statutory results
Operating profit $16.5m $6.2m
Net finance costs $(3.0)m $(3.1)m
Profit before tax $13.5m $3.1m
Taxation $(3.2)m $(0.7)m
Profit for the period $10.3m $2.4m
Basic earnings per share 35.0c 8.1c
Net debt $74.2m $74.7m
1 The Directors believe that adjusted measures provide a useful comparison of
business trends and performance. Adjusted results exclude adjusting items and
discontinued operations. The term adjusted is not defined under IFRS and may
not be comparable with similarly titled measures used by other companies.
2 Constant currency measures are provided in the Adjusted Performance Measures
section.
Order intake for the Group was $117.9m (HY25: $170.5m). Team Wendy order
intake of $30.1m was down 59%, largely due to the prior period including US
DoW NG IHPS orders of $35.6m. We expect further DoW delivery orders before the
end of the calendar year. Team Wendy orders were also impacted by delays to
Department of Homeland Security (DHS) funding due to the government shutdown.
Avon Protection order intake remained resilient at $87.8m (HY25: $97.2m),
including a $12.7m filter order from a Middle Eastern customer and two new
NATO countries joining NSPA supplier agreements.
The closing order book of $219.9m reflects a decline of 11.0% (11.4% constant
currency) compared to HY25. Team Wendy closed the half with $108.0m in the
order book, a decrease of 29.5%, which includes $58m of orders for NG IHPS and
$40m for ACH Gen II. The Avon Protection closing order book of $111.9m is an
increase of 19.4% and includes the previously mentioned Middle East filter
order for delivery in the second half of the year.
Revenue for the Group totalled $160.8m, an increase of 8.1% (6.8% constant
currency) compared to the prior period of $148.7m, reflecting growth in Avon
Protection partially offset by a decline for Team Wendy.
Team Wendy revenue totalled $67.9m, a decline of 7.2% compared to the first
half of 2025. This was driven by DoW revenues which declined by 10.3% to
$44.6m (HY25: $49.7m), reflecting lower DoW demand for EXFIL LTP bump helmets,
pads and other accessories compared to the prior period. These factors were
partially offset by further ACH Gen II helmet ramp up, with revenues $7.2m
higher than HY25. Commercial Americas revenue was down 6.0% half on half
reflecting the impact of the DHS shutdown. UK & International revenue of
$7.5m was up 11.9% on the previous period.
Avon Protection delivered revenue of $92.9m in the first half, an increase of
23.0% compared to HY25 revenue of $75.5m. We saw a 25.5% increase for the UK
& International market to $52.1m, primarily reflecting fulfilment of
Ukraine related orders. Commercial Americas revenue was up 89.6% to $27.3m,
driven by strong demand for masks and accessories, and the fulfilment of our
Canadian rebreather order. US DoW sales fell to $13.5m (HY25: $19.6m), however
we are expecting a stronger second half based on scheduled deliveries and
commencing delivery of the newly won DoW filter order.
Adjusted operating profit of $24.4m (HY25: $17.5m) increased by 39.4%,
resulting in an adjusted operating profit margin of 15.2% (HY25: 11.8%), up an
impressive 340bps well into our target range. This was mainly the result of
gearing effects from increased revenue and disciplined commercial execution in
Avon Protection. Team Wendy also contributed increased operating profit
demonstrating the benefits of site optimisation despite a headwind from lower
sales.
Statutory operating profit of $16.5m (HY25: $6.2m) reflected adjusting items
in the period which are summarised below.
The Adjusted Performance Measures section contains a full breakdown and
explanation of adjustments.
Statutory operating profit HY26 HY25
$m $m
16.5 6.2
Amortisation of acquired intangibles 2.8 2.9
Transformational costs 5.1 8.4
Adjusted operating profit 24.4 17.5
After adjusted net finance costs of $2.6m (HY25: $2.7m) and an adjusted tax
charge of $5.2m (HY25: $3.3m), the Group recorded an adjusted profit for the
period after tax of $16.6m (HY25: $11.5m). Adjusted basic earnings per share
grew by 45.4% to 56.4 cents (HY25: 38.8 cents).
Return on invested capital, calculated on a rolling 12-month basis, was 20.8%
(HY25: 16.3%), reflecting the increase in operating profit.
Statutory net finance costs of $3.0m (HY25: $3.1m) include $0.4m (HY25: $0.4m)
net interest expense on the UK defined benefit pension scheme liability.
Statutory profit before tax was $13.5m (HY25: $3.1m) and, after a tax charge
of $3.2m (HY25: $0.7m), the profit for the period was $10.3m (HY25: $2.4m).
Transformation costs
HY26 HY25
$m $m
Footprint optimisation and operational excellence (1) 3.6 8.4
Functional excellence 1.5 -
Total transformation costs 5.1 8.4
(1) Including $0.7m for acceleration of amortisation related to legacy ERP
systems (HY25: $1.3m), and, for the prior period $1.1m acceleration of
deprecation for assets held in Irvine that will no longer be used.
Footprint optimisation and operational excellence spend in H1 related to Team
Wendy. This included successful completion of the project to remove SAP
delivering annualised savings of over $1m per year, transformation in
Cleveland enabling the further ramp up of DoW contract volumes and some final
legacy charges specifically related to historical Irvine operations.
Functional excellence activity related to optimisation of IT, with the project
to transform this function and deliver cost effective business-facing support
progressing very well. There was no transformational capital expenditure in
the first half.
Full year transformational investment is expected to be line with the $7m
guidance set out with the FY25 results, which included $6m operating expense
and $1m capital expenditure. A higher weighting to operating expense is now
anticipated reflecting spend in H1.
Segmental performance
HY26 HY25
Avon Protection Team Wendy Total Avon Protection Team Wendy Total
$m
Orders received 87.8 30.1 117.9 97.2 73.3 170.5
Closing order book 111.9 108.0 219.9 93.7 153.3 247.0
Revenue 92.9 67.9 160.8 75.5 73.2 148.7
Adjusted operating profit 20.7 3.7 24.4 14.3 3.2 17.5
Adjusted operating 22.3% 5.4% 15.2% 18.9% 4.4% 11.8%
profit margin
Avon Protection delivered outstanding operating profit margin, up 340 bps to
22.3% compared to HY25. Margin benefited from the operational gearing effect
of the increase in revenue, a particularly favourable mix towards our higher
specification products, commercial optimisation and disciplined cost
management.
Team Wendy operating margin was 5.4%, an increase of 100bps compared to HY25,
demonstrating the benefits of site optimisation, despite lower overall revenue
and a greater share of ACH Gen II volumes which have comparatively low
profitability against the remainder of our product portfolio.
Research and development expenditure
Total investment in research and development (capitalised, expensed and
customer funded) was $6.5m (HY25: $6.2m), in line with the prior period as a
percentage of revenue.
HY26 HY25
$m $m
Total expenditure 6.5 6.2
Less customer funded (0.7) (0.7)
Group expenditure 5.8 5.5
Capitalised (0.8) (0.7)
Income statement impact 5.0 4.8
Amortisation of development expenditure 1.5 1.7
Total income statement impact 6.5 6.5
Revenue 160.8 148.7
Total R&D expenditure as a % of revenue 4.0% 4.2%
( )
Avon Protection expenditure has primarily focused on completing the
development of the MITR goggle, whilst Team Wendy expenditure related to RECON
helmet development.
Net debt and cash flow
HY26 HY25
$m $m
Adjusted EBITDA 29.3 23.4
Share-based payments and defined benefit pension scheme costs 3.0 3.3
Working capital (21.1) (13.7)
Cash flows from operations before adjusting items 11.2 13.0
Transformational costs paid (3.2) (6.5)
Cash flow from operations 8.0 6.5
Payments to pension plan (3.3) (3.0)
Net finance costs (2.5) (2.3)
Net repayment of leases (1.3) (1.7)
Tax paid (0.2) -
Capital expenditure (3.7) (3.4)
Purchase of own shares - Long Term Incentive Plan - (2.5)
Dividends to shareholders (4.9) (4.9)
Foreign exchange on cash - (0.1)
Change in net debt (7.9) (11.4)
Opening net debt, excluding lease liabilities (50.1) (43.5)
Closing net debt, excluding lease liabilities (58.0) (54.9)
Cash flows from operations before adjusting items were $11.2m (HY25: $13.0m),
including working capital outflows of $21.1m (HY25: outflows of $13.7m). The
outflow this period was driven principally by sales phasing and timing of
payments. $18m was received from the DoW in the first week of April.
Net debt was $74.2m (HY25: net debt $74.7m), which includes lease liabilities
of $16.2m (HY25: $19.8m). Excluding lease liabilities, net debt was $58.0m
(HY25: net debt $54.9m).
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 eleven years. The net pension liability for the
scheme amounted to $5.7m as at 31 March 2026 (FY25: $13.8m). The decrease was
mainly due to deficit contributions of $3.3m, and a $5.7m favourable actuarial
gain which includes the impact of higher bond yields.
The next triennial valuation at 31 March 2025 is underway, with the outcome of
the process expected in June 2026. This will include agreement of updated
deficit recovery plan payments which will be communicated with our full
results.
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
presentational currency, US dollars. Group 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 decreases annual
revenue by approximately $0.3m and increases annual operating profit by
approximately $0.3m.
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 2029, having recently been extended by one-year.
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 31 March 2026 was $20.0m (FY25: $20.0m).
Dividends
The Board has proposed an interim dividend of 8.1 cents per share (HY25: 7.6
cents). This interim dividend will be paid on 4 September 2026 to shareholders
on the register at 7 August 2026. The interim 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 Financial Officer
Chief Executive Officer
13 May 2026
13 May 2026
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE HALF-YEARLY
FINANCIAL REPORT
The Directors confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted for use in the
UK;
· the interim management report includes a true and fair review of the
information required by:
DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related
party transactions that have taken place in the first six months of the
current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
Zoe Holland
Company Secretary
13 May 2026
FORWARD-LOOKING STATEMENTS
Certain statements in this half year 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
as a result of new information, future events or otherwise.
COMPANY WEBSITE
The half year report is available on the Company's website at
www.avon-technologiesplc.com (http://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.
INDEPENDENT REVIEW REPORT TO AVON TECHNOLOGIES PLC
Conclusion
We have been engaged by Avon Technologies plc ("the Company") to review the
condensed set of financial statements in the half-yearly financial report for
the six months ended 31 March 2026 which comprises Consolidated Statement of
Comprehensive Income, Consolidated Balance Sheet, Consolidated Cash Flow
Statement, Consolidated Statement of Changes in Equity and the related
explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 31 March 2026 is not prepared, in
all material respects, in accordance with IAS 34 Interim Financial Reporting
as adopted for use in the UK and the Disclosure Guidance and Transparency
Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity ("ISRE (UK) 2410") issued for use in the UK.
A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. We read the other information
contained in the half-yearly financial report and consider whether it contains
any apparent misstatements or material inconsistencies with the information in
the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention that causes us to believe that the directors
have inappropriately adopted the going concern basis of accounting, or that
the directors have identified material uncertainties relating to going concern
that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410. However, future events or conditions may cause the Group to
cease to continue as a going concern, and the above conclusions are not a
guarantee that the Group will continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the DTR of the UK FCA.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with UK-adopted international accounting standards.
The directors are responsible for preparing the condensed set of financial
statements included in the half-yearly financial report in accordance with IAS
34 as adopted for use in the UK.
In preparing the condensed set of financial statements, the directors are
responsible for assessing the Group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. Our conclusion, including our conclusions relating to going concern,
are based on procedures that are less extensive than audit procedures, as
described in the Basis for conclusion section of this report.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the DTR of the
UK FCA. Our review has been undertaken so that we might state to the Company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Huw Brown
for and on behalf of KPMG LLP
Chartered Accountants
66 Queen Square
Bristol
BS1 4BE
13 May 2026
Consolidated Statement of Comprehensive Income for the 6 months ended 31 March
2026
6 months ended 31 March 2026 6 months ended 31 March 2025
Adjusted Adjustments Total Adjusted Adjustments Total
$m $m $m $m $ $
m m
Note (Note 2.1) (
N
o
t
e
2
.
1
)
Revenue 2.2 160.8 - 160.8 148.7 - 148.7
Cost of sales (93.3) - (93.3) (89.9) (1.0) (90.9)
Gross profit 67.5 - 67.5 58.8 (1.0) 57.8
Sales and marketing expenses (10.6) - (10.6) (9.1) - (9.1)
Research and development costs (6.3) (0.2) (6.5) (4.8) (1.7) (6.5)
General and administrative expenses (26.2) (7.7) (33.9) (27.4) (8.6) (36.0)
Operating profit 24.4 (7.9) 16.5 17.5 (11.3) 6.2
Net finance costs 4.3 (2.6) (0.4) (3.0) (2.7) (0.4) (3.1)
Profit before taxation 21.8 (8.3) 13.5 14.8 (11.7) 3.1
Taxation 2.4 (5.2) 2.0 (3.2) (3.3) 2.6 (0.7)
Profit for the period 16.6 (6.3) 10.3 11.5 (9.1) 2.4
( )
Consolidated Statement of Comprehensive Income for the 6 months ended 31 March
2026 (Continued)
Note 6 months ended 31 March 2026 6 months ended 31 March 2025
$m $m
Profit for the period 10.3 2.4
Other comprehensive income/(expense)
Items that are not subsequently reclassified to the income statement
Remeasurement gain recognised on retirement benefit scheme 5.2 5.7 5.7
Deferred tax relating to retirement benefit scheme (1.9) (2.0)
Items that may be subsequently reclassified to the income statement
Net exchange differences offset in reserves (0.8) 0.7
Other comprehensive income for the period 3.0 4.4
Total comprehensive income for the period 13.3 6.8
Earnings per share (cents)
Basic 35.0c 8.1c
Diluted 33.6c 7.7c
Consolidated Balance Sheet
Note As at As at
31 March 30 Sept
2026 2025
$m $m
Assets
Non-current assets
Intangible assets 3.1 110.9 115.4
Property, plant and equipment 3.2 43.1 42.3
Finance leases 3.3 4.0 4.5
Deferred tax assets 26.2 31.4
184.2 193.6
Current assets
Inventories 59.1 55.5
Trade and other receivables 56.4 51.9
Current tax receivables 0.4 0.4
Cash and cash equivalents 11.5 13.4
127.4 121.2
Liabilities
Current liabilities
Borrowings 4.1 2.7 2.8
Trade and other payables 31.3 41.7
Provisions for liabilities and charges 5.1 4.8 6.3
38.8 50.8
Net current assets 88.6 70.4
Non-current liabilities
Borrowings 4.1 83.0 78.6
Retirement benefit obligations 5.2 5.7 13.8
Provisions for liabilities and charges 5.1 6.7 4.9
95.4 97.3
Net assets 177.4 166.7
Shareholders' equity
Ordinary shares 4.4 50.3 50.3
Share premium account 4.4 54.3 54.3
Other reserves (16.0) (15.2)
Retained earnings 88.8 77.3
Total equity 177.4 166.7
Consolidated Cash Flow Statement
6 months ended 6 months ended
31 March 31 March
2026 2025
Note $m $m
Cash flow from operating activities
Cash flow from operations 5.3 8.0 6.5
Retirement benefit deficit recovery contributions 5.2 (3.3) (3.0)
Tax payments (0.2) -
Net cash flow from operating activities 4.5 3.5
Cash flow used in investing activities
Purchase of property, plant and equipment(1) 3.2 (2.9) (2.8)
Capitalised development costs and computer software 3.1 (0.8) (0.7)
0
Bank interest income 4.3 0.1 0.1
Finance lease interest 0.1 0.3
Finance lease capital receipts 0.5 0.5
Net cash used in investing activities (3.0) (2.6)
Cash flow used in financing activities
Proceeds from loan drawdowns 4.2 15.0 17.5
Loan repayments 4.2 (9.0) (10.5)
Finance costs paid in respect of bank loans and overdrafts 4.3 (2.2) (2.1)
Finance costs paid in respect of leases 4.3 (0.5) (0.5)
Repayment of lease liability (1.8) (2.2)
Purchase of own shares - Long-Term Incentive Plan - (2.5)
Dividends paid to shareholders 4.5 (4.9) (4.9)
Net cash used in financing activities (3.4) (5.2)
Net decrease in cash and cash equivalents (1.9) (4.3)
Cash and cash equivalents at beginning of the period 13.4 14.0
Effects of exchange rate changes - (0.1)
Cash and cash equivalents at end of the period 11.5 9.6
(1) Purchases of property, plant and equipment for HY26 have been presented
net of $1.0m cash received for grant funding. (
)
Consolidated Statement of Changes in Equity
Share Share premium Other reserves Retained earnings Total equity
capital
Note $m $m $m $m $m
At 30 September 2024 50.3 54.3 (15.7) 77.6 166.5
Profit for the period - - - 2.4 2.4
Net exchange differences offset in reserves - - 0.7 - 0.7
Actuarial gain on retirement benefit scheme - - - 5.7 5.7
Deferred tax on retirement benefit scheme - - - (2.0) (2.0)
Total comprehensive income for the period - - 0.7 6.1 6.8
Dividends paid 4.5 - - - (4.9) (4.9)
Own share acquired - - (2.5) (2.5)
Fair value of share-based payments - - - 2.5 2.5
At 31 March 2025 50.3 54.3 (15.0) 78.8 168.4
Profit for the period - - - 7.9 7.9
Net exchange differences offset in reserves - - (0.2) - (0.2)
Actuarial loss on retirement benefit scheme - - - (6.6) (6.6)
Deferred tax on other temporary differences - - - 0.3 0.3
Deferred tax on retirement benefit scheme - - - 2.2 2.2
Total comprehensive income for the period - - (0.2) 3.8 3.6
Dividends paid 4.5 - - - (2.3) (2.3)
Own share acquired - - - (6.6) (6.6)
Fair value of share-based payments - - - 1.6 1.6
Deferred tax on employee share schemes - - - 2.0 2.0
At 30 September 2025 50.3 54.3 (15.2) 77.3 166.7
Profit for the period - - - 10.3 10.3
Net exchange differences offset in reserves - - (0.8) - (0.8)
Actuarial gain on retirement benefit scheme - - - 5.7 5.7
Deferred tax on retirement benefit scheme - - - (1.9) (1.9)
Total comprehensive income for the period - - (0.8) 14.1 13.3
Dividends paid 4.5 - - - (4.9) (4.9)
Fair value of share-based payments - - - 2.3 2.3
At 31 March 2026 50.3 54.3 (16.0) 88.8 177.4
Other reserves consist of the capital redemption reserve of $0.6m (31 March
2025: $0.6m, 30 September 2025: $0.6m) and the translation reserve of ($16.6m)
(31 March 2025: ($15.6m), 30 September 2025 ($15.8m)).
NOTES TO THE FINANCIAL STATEMENTS
Section 1: General Information and Basis of Preparation
The Company is a public limited Company incorporated in England and Wales and
domiciled in England with its ordinary shares being traded on the London Stock
Exchange. The address of its registered office is Hampton Park West, Semington
Road, Melksham, Wiltshire, SN12 6NB.
This unaudited condensed consolidated interim financial information was
approved for issue on 13 May 2026.
The interim financial period presents the 6 months ended 31 March 2026 (prior
interim financial period 6 months ended 31 March 2025, prior annual financial
year ended 30 September 2025).
The financial information set out in this document does not constitute the
Group's statutory accounts for the period or the full year. Statutory accounts
for the previous financial year were approved by the Board of Directors on 11
November 2025 and delivered to the Registrar of Companies.
The report of the auditors on those accounts was unqualified, and did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report.
This condensed consolidated interim financial information for the 6 months
ended 31 March 2026 has been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Conduct Authority and with IAS 34,
'Interim financial reporting' as adopted by the United Kingdom. These interim
financial results should be read in conjunction with the annual financial
statements for the year ended 30 September 2025, which have been prepared in
accordance with UK-adopted international accounting standards.
The financial information presented in this Interim Report has been prepared
in accordance with the accounting policies expected to be used in preparing
the 2026 Annual Report and Accounts which do not differ significantly from
those used in the preparation of the 2025 Annual Report and Accounts.
The Directors have prepared a going concern assessment covering the 12 month
period from the date of approval of these interim financial statements. The
assessment indicates that the Group will have sufficient funds to meet its
liabilities as they fall due for that period.
The Group has committed RCF facilities of $137m to May 2029. Related loan
covenants include a limit of 3.0 times for the ratio of net debt, excluding
lease liabilities, to bank-determined adjusted EBITDA (leverage). As part of
the going concern assessment, the Directors considered sensitivity of
financial covenants and liquidity headroom to a reverse stress test to
determine the deterioration against the base case forecast required to
challenge covenant levels. This demonstrated significant headroom, with the
downside movement required not considered plausible given the secured order
book and mitigating actions available to reduce future cash outflows or
expenses within managements control.
On this basis, the Directors are confident that the Group will have sufficient
funds to continue to meet its liabilities as they fall due for at least 12
months from the approval of these interim financial statements. Accordingly,
the Group continues to adopt the going concern basis in preparing its interim
financial statements.
Section 2: Results for the Period
2.1 Adjusted performance measures
The Directors assess the operating performance of the Group based on adjusted
measures of 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, average inventory turns 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.
Adjustments to operating profit
6 months ended 6 months ended
31 March 31 March
2026 2025
$m $m
Operating profit 16.5 6.2
Amortisation of acquired intangibles 2.8 2.9
Transformational costs 4.4 6.0
Acceleration of Irvine depreciation - transformational - 1.1
Acceleration of software amortisation - transformational 0.7 1.3
Adjusted operating profit 24.4 17.5
Depreciation 3.1 3.8
Other amortisation charges 1.8 2.1
Adjusted EBITDA 29.3 23.4
Amortisation charges for acquired intangible assets of $2.8m (HY25: $2.9m) are
excluded from adjusted measures as they do not change each period based on
underlying business trading and performance.
Transformational costs excluding depreciation and amortisation were $4.4m
(HY25: $6.0m). These included $2.9m related to footprint optimisation and
operational excellence, and $1.5m related to functional excellence.
Transformational accelerated depreciation and amortisation charges were $0.7m
(HY25: $2.4m). These include $0.7m related to removal of the Group's legacy
SAP ERP system (HY25: $1.3m), and, in the prior period $1.1m for assets held
in Irvine that will not be used following operational closure.
Transformational costs are considered an adjusting item as they related to
specific activities which do not form part of the underlying business trading
and performance.
Adjustments to finance costs 6 months ended 31 March 2026 6 months ended 31 March 2025
$m $m
Net finance costs (3.0) (3.1)
U.K. defined benefit pension scheme net interest expense 0.4 0.4
Adjusted net finance costs (2.6) (2.7)
$0.4m (HY25: $0.4m) net interest expense on the U.K. defined benefit pension
scheme liability is treated as an adjusting item given the scheme relates to
employees employed prior to 31 January 2003 and was closed to future accrual
of benefits on 1 October 2009 (note 5.2).
Adjustments to taxation
Adjustments to taxation represent the tax effects of the adjustments to
operating profit and finance costs. Adjusting items do not have significantly
different tax rates, with the overall effective rate of 24% (HY25: 22%)
approximating statutory rates applicable in the U.S. and U.K.
Constant currency reporting
Constant currency measures remove the impact of changes in exchange rates.
Constant currency measures are calculated by translating the prior period at
current period exchange rates.
6 months ended 31 March 2025 6 months ended 31 March 2025
constant currency reported
$m $m
Orders received 172.3 170.5
Closing order book 248.3 247.0
Revenue 150.6 148.7
Adjusted operating profit 24.4 24.4
Adjusted profit before tax 21.8 21.8
Adjusted basic earnings per share (cents) 38.8c 38.8c
( )
31 March 2026 31 March 2025
Average inventory turns
$m $m
12-month average month end inventory 62.8 60.1
Last 12 months adjusted cost of sales 187.5 177.3
Group average inventory turns 3.0 3.0
Average inventory turns measure how many times inventory was turned over in
the period by dividing adjusted cost of sales over the last 12 months, by the
12-month average month end inventory value.
6 months ended 31 March 2026 6 months ended 31 March 2025
Average productivity
Average direct headcount 591 549
Last 12 months revenue $326.0m $296.6m
Group productivity $552k $540k
Productivity measures how much revenue was generated per direct employee by
dividing the revenue over the last 12 months, by the 12-month average month
end number of direct heads.
6 months ended 31 March 2026 6 months ended 31 March 2025
Scrap (% of revenue)
$m $m
Last 6 months scrap 2.4 2.0
Last 6 months revenue 160.8 148.7
Group scrap (% of revenue) 1.5% 1.4%
Scrap (% of revenue) is calculated by dividing the total value of scrap
produced in the period, by the revenue generated in the period.
Return on invested capital (ROIC)
6 months ended 31 March 2026 6 months ended 31 March 2025
$m $m
Net assets 177.4 168.4
Net debt excluding lease liabilities 58.0 54.9
Lease liabilities 16.2 19.8
Retirement benefit obligations 5.7 8.5
Derivatives - (0.1)
Net tax (26.6) (28.5)
Total invested capital 230.7 223.0
Average invested capital 226.9 227.9
Adjusted operating profit (preceding 12 months) 47.2 37.2
ROIC 20.8% 16.3%
( )
(
)
( )
Cash conversion
Cash conversion excludes the impact of adjusting items from operating cash
flow and EBITDA.
6 months ended 31 March 2026 6 months ended 31 March 2025
$m $m
Cash flow from operations before adjusting items (Note 5.3) 11.2 13.0
Adjusted EBITDA 29.3 23.4
Cash conversion 38% 56%
2.2 Operating segments
The Group Executive team is responsible for allocating resources and assessing
performance of its operating segments. Operating segments are therefore
reported in a manner consistent with the internal reporting provided to the
Group Executive team.
The Group has two different operating and reportable segments: Avon Protection
and Team Wendy.
6 months ended 31 March 2026 Avon Protection Team Wendy Adjusted Total Adjustments (Note 2.1) Total
$m $m $m $m $m
Revenue 92.9 67.9 160.8 - 160.8
Adjusted operating profit/(loss) 20.7 3.7 24.4 (7.9) 16.5
Net finance costs (2.6) (0.4) (3.0)
Profit/(loss) before taxation 21.8 (8.3) 13.5
Taxation (5.2) 2.0 (3.2)
Profit/(loss) for the period 16.6 (6.3) 10.3
Basic earnings per share (cents) 56.4c (21.4c) 35.0c
Diluted earnings per share (cents) 54.1c (20.5c) 33.6c
6 months ended 31 March 2025 Avon Protection Team Wendy Adjusted Total Adjustments (Note 2.1) Total
$m $m $m $m $m
Revenue 75.5 73.2 148.7 - 148.7
Adjusted operating profit/(loss) 14.3 3.2 17.5 (11.3) 6.2
Net finance costs (2.7) (0.4) (3.1)
Profit/(loss) before taxation 14.8 (11.7) 3.1
Taxation (3.3) 2.6 (0.7)
Profit/(loss) for the period 11.5 (9.1) 2.4
Basic earnings per share (cents) 38.8c (30.7c) 8.1c
Diluted earnings per share (cents) 37.2c (29.5c) 7.7c
Revenue analysed by line of business
6 months ended 31 March 2026 6 months ended 31 March 2025
Total Total
Avon Protection Team Wendy $m Avon Protection Team Wendy $m
$m $m $m $m
U.S. DoW 13.5 44.6 58.1 19.6 49.7 69.3
Commercial Americas 27.3 15.8 43.1 14.4 16.8 31.2
U.K. & International 52.1 7.5 59.6 41.5 6.7 48.2
Total 92.9 67.9 160.8 75.5 73.2 148.7
Revenue analysed by geographic region by origin
6 months ended 31 March 2026 6 months ended 31 March 2025
$m $m
U.K. 43.1 25.6
U.S. 117.7 123.1
Total 160.8 148.7
( )
2.3 Earnings Per Share
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares in
issue during the period, excluding those held as treasury shares (note 4.4).
The company has dilutive potential ordinary shares in respect of the
Performance Share Plan. Reconciliations of the earnings and weighted average
number of shares used in calculations of earnings per share are set out below:
Weighted average number of shares
6 months ended 6 months ended
31 March 31 March
2026 2025
Weighted average number of ordinary shares in issue used in basic calculations 29,394 29,638
(thousands)
Potentially dilutive shares (weighted average) (thousands) 1,295 1,259
Fully diluted number of ordinary shares (weighted average) (thousands) 30,689 30,897
2.4 Taxation
Tax charged within the 6 months ended 31 March 2026 has been calculated using
a 24% estimated annual effective rate of tax which is expected to apply to the
Group for the financial year (HY25: 22%). The estimated effective rate of tax
was calculated by aggregating separate estimates for UK and US tax
jurisdictions.
Section 3: Non-current assets
3.1 Intangible assets
Acquired intangibles Development expenditure Computer software
Goodwill Total
Net book amounts $m $m $m $m $m
At 30 September 2025 65.4 33.9 14.1 2.0 115.4
Additions - - 0.8 - 0.8
Amortisation - (2.8) (1.5) (1.0) (5.3)
At 31 March 2026 65.4 31.1 13.4 1.0 110.9
Assessments of potential impairment indicators for the Avon Protection and
Team Wendy CGUs that include associated goodwill, acquired intangible assets
and property, plant and equipment, and attributable working capital were
conducted at the interim reporting date. No indicators were noted.
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. At
the interim reporting date an assessment of development asset CGUs was
performed with no impairments noted.
3.2 Property, plant and equipment
Net book amounts Freeholds Right of use assets Plant and machinery Leasehold improvements Total
$m $m $m $m $m
At 30 September 2025 1.3 8.1 28.9 4.0 42.3
Additions 0.1 - 2.6 1.2 3.9
Depreciation - (1.0) (1.9) (0.2) (3.1)
At 31 March 2026 1.4 7.1 29.6 5.0 43.1
3.3 Finance leases
Finance leases
$m
At 30 September 2025 4.5
Interest Income 0.1
Payments received (0.6)
At 31 March 2026 4.0
The Group sub-leases legacy commercial premises where they are no longer
required for operations, resulting in lease assets being held on the balance
sheet. Payments received include $0.1m interest and $0.5m capital receipts.
Section 4: Funding
4.1 Borrowings
As at As at
31 March 30 Sept
2026 2025
$m $m
Current
Lease liabilities 2.7 2.8
Non-Current
Bank Loans 69.5 63.5
Lease liabilities 13.5 15.1
83.0 78.6
Total Group borrowings 85.7 81.4
The Group had the following committed facilities at the balance sheet date:
As at As at
31 March 30 Sept
2026 2025
$m $m
Overdraft facility 3.0 3.0
Total undrawn committed borrowing facilities 67.5 73.5
Bank loans and overdrafts utilised 69.5 63.5
Total Group committed facilities 140.0 140.0
In May 2024 the Group signed 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 2029, having recently been extended by one-year
(previously until May 2028).
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 period.
The Group has provided the lenders with a negative pledge in respect of
certain shares in Group companies.
4.2 Analysis of net debt
As at Cash flow $m Non-cash movements $m Exchange movements $m As at
30 Sept 2025 31 March 2026 $m
$m
Cash at bank and in hand 13.4 (1.9) - - 11.5
Bank loans (63.5) (6.0) - - (69.5)
Net debt excluding lease liabilities (50.1) (7.9) - - (58.0)
Lease liabilities (17.9) 2.3 (0.5) (0.1) (16.2)
Net debt (68.0) (5.6) (0.5) (0.1) (74.2)
Cash flow relating to bank loans consisted of $15.0m proceeds from drawdowns,
less $9.0m repayments.
4.3 Net finance costs
6 months ended 31 March 6 months ended 31 March
2026 2025
$m $m
Interest payable on bank loans and overdrafts (2.1) (2.3)
Interest payable in respect of leases (0.5) (0.5)
Amortisation of finance fees (0.2) (0.3)
U.K. defined benefit pension scheme net interest expense (0.4) (0.4)
Bank interest income 0.1 0.1
Finance lease interest 0.1 0.3
Net finance costs (3.0) (3.1)
( )
4.4 Equity
Share Capital
No. of shares Ordinary shares Share premium No. of shares Ordinary shares Share premium
as at as at as at as at as at as at
31 March 2026 31 March 2026 31 March 2026 30 Sept 30 Sept 2025 30 Sept
2025 2025
$m $m $m $m
Called up, allotted and fully paid ordinary shares of £1 each
At the beginning of the period 31,023,292 50.3 54.3 31,023,292 50.3 54.3
At the end of the period 31,023,292 50.3 54.3 31,023,292 50.3 54.3
Ordinary shareholders are entitled to receive dividends and to vote at
meetings of the Company.
Own shares held - Share Buyback Programme
6 months ended Year ended
31 March 30 Sept
2026 2025
No. of shares No. 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.
Own shares held - Long-Term Incentive Plan
6 months ended Year ended
31 March 30 Sept
2026 2025
No. of shares No. of shares
Opening balance 944,810 555,205
Acquired in the period - 494,650
Disposed on exercise of options (138,265) (105,045)
Closing balance 806,545 944,810
These shares are held in trust in respect of awards made under the Avon
Protection Long-Term Incentive Plan (LTIP). Dividends on the shares have been
waived. The market value of shares held in trust at 31 March 2026 was $17.7m
(30 September 2025: $27.0m). The shares are held at cost as treasury shares
and deducted from shareholders' equity.
In the prior year the trust acquired 494,650 shares at a cost of $9.1m.
142,403 of these shares were acquired in H1 2025 at a cost of $2.5m.
4.5 Dividends
On 30 January 2026, the shareholders approved a final dividend of 17.0c per
qualifying ordinary share in respect of the year ended 30 September 2025. This
was paid on 6 March 2026 utilising $4.9m of shareholders' funds.
The Board of Directors has declared an interim dividend of 8.1c (2025: 7.6c)
per qualifying ordinary share in respect of the year ending 30 September 2026.
This interim dividend will be paid on 4 September 2026 to shareholders on the
register at 7 August 2026 with an ex-dividend date of 6 August 2026.
In accordance with accounting standards, this dividend has not been provided
for. It will be recognised in shareholders' funds in H2 FY26 and is expected
to utilise $2.3m of shareholders' funds.
Section 5: Other
5.1 Provisions for liabilities and charges
Warranty Legal Property Employee Offset Restructuring
incentives and other Total
$m $m $m $m $m $m $m
At 30 September 2025 3.2 0.8 5.6 - 1.0 0.6 11.2
Created/(released) (0.2) (0.1) 0.1 - - 1.3 1.1
Payments in the period (0.4) - (1.4) - - (0.5) (2.3)
Transfer from accruals - - - 1.5 - - 1.5
At 31 March 2026 2.6 0.7 4.3 1.5 1.0 1.4 11.5
As at As at
31 March 2026 30 Sept
2025
Analysis of total provisions $m $m
Current 4.8 6.3
Non-current 6.7 4.9
Total provisions 11.5 11.2
Warranty provisions cover expected costs under guarantees provided with
certain products. Legal provisions relate to specific claims against the
Group. Property obligations relate to leased premises of the Group which are
subject to dilapidation risks. Offset provisions relate to the Group's
estimated obligations under programmes to generate economic value for specific
countries. Restructuring provisions relate to costs associated with
transformational programmes. Employee incentives relate to employer social
security contributions on share-based remuneration schemes. During the period
employee incentives were transferred from accruals to provisions for
liabilities and charges, this being considered a more appropriate
classification.
5.2 Defined benefit pension scheme
As at As at
31 March 30 Sept
2026 2025
$m $m
Net pension liability 5.7 13.8
The Group operated a contributory defined benefit plan to provide pension and
death benefits for the employees of Avon Protection plc and its Group
undertakings in the U.K. 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 defined benefit plan exposes
the Group to actuarial risks such as longevity risk, inflation risk and
investment risk.
The funding of the plan is based on regular actuarial valuations. The most
recent finalised actuarial valuation of the plan was carried out at 31 March
2022 when the market value of the plan's assets was £337.5 million. The fair
value of those assets represented 91% of the value of the benefits which had
accrued to members, after allowing for future increase in pensions. The next
triennial valuation at 31 March 2025 is underway, with the outcome of the
process expected in June 2026.
During the period the Group made payments to the fund of $3.3m (HY25: $3.0m)
in respect of scheme expenses and deficit recovery plan payments.
Movement in net defined benefit liability
Defined benefit Defined benefit Net defined benefit
obligation asset liability
31 March 30 Sept 31 March 30 Sept 31 March 30 Sept
2026 2025 2026 2025 2026 2025
$m $m $m $m $m $m
At the beginning of the period (297.2) (329.3) 283.4 312.1 (13.8) (17.2)
Included in profit or loss
Administrative expenses - - (0.6) (0.9) (0.6) (0.9)
Net interest cost (8.3) (15.7) 7.9 15.0 (0.4) (0.7)
(8.3) (15.7) 7.3 14.1 (1.0) (1.6)
Included in other comprehensive income
- Actuarial gain/(loss) arising from:
- Demographic assumptions - 1.4 - - - 1.4
- Financial assumptions 4.7 28.0 - - 4.7 28.0
- Experience adjustment - (3.8) - - - (3.8)
- Return on assets excluding interest - - 1.0 (26.5) 1.0 (26.5)
4.7 25.6 1.0 (26.5) 5.7 (0.9)
Other
Contributions by the employer - - 3.3 6.0 3.3 6.0
Net benefits paid out 11.3 22.5 (11.3) (22.5) - -
FX gain/(loss) 4.2 (0.3) (4.1) 0.2 0.1 (0.1)
At 31 March/30 September (285.3) (297.2) 279.6 283.4 (5.7) (13.8)
Actuarial assumptions
31 March 30 Sept
2026 2025
% p.a. % p.a.
Inflation (RPI) 3.20 2.90
Inflation (CPI) 2.85 2.55
Pension increases post August 2005 2.20 2.05
Pension increases pre August 2005 3.00 2.75
Discount rate for scheme liabilities 6.15 5.80
5.3 Cash flow from operations
6 months ended 6 months ended
31 March 31 March
2026 2025
$m $m
Profit for the period 10.3 2.4
Adjustments for:
Taxation 3.2 0.7
Depreciation 3.1 4.9
Amortisation of intangible assets 5.3 6.3
Defined benefit pension scheme cost 0.6 0.3
Net finance costs 3.0 3.1
Fair value of share-based payments 2.4 3.0
Transformational costs expensed(1) 4.4 6.0
Increase in inventories (3.6) (3.8)
Increase in receivables (5.7) (10.4)
(Decrease)/increase in payables and provisions (11.8) 0.5
Cash flow from operations before adjusting items 11.2 13.0
Transformational costs paid (3.2) (6.5)
Cash flow from operations 8.0 6.5
(1)Transformational costs expensed exclude amortisation and depreciation (note
2.1).
5.4 Exchange rates
Average rate Closing rate Average rate Closing rate
Closing rate
31 March 31 March 31 March 31 March 30 Sept
2026 2026 2025 2025 2025
USD/GBP 0.7471 0.7552 0.7866 0.7721 0.7740
5.5 Principal risks and uncertainties
The nature of the principal risks and uncertainties impacting the Group are
described on pages 46-53 of our 2025 Annual Report. Further information on
risks and opportunities for the remaining six months of the year is set out in
the initial section of this announcement. These updates have not resulted in a
change to the number of principal risks, which remain:
· Cleveland ramp-up
· Manufacturing quality
· Supply chain
· Cybersecurity
· NPI
· Political and economic uncertainty
· Bids and contracts
· Government customers
· Defined benefit pension scheme
· Compliance and internal control
· Controls and financial reporting
5.6 Related party transactions
There were no related party transactions during the period or outstanding at
the end of the period (2025 nil) other than internal transactions between
Group companies, and compensation of key management personnel which will be
disclosed as required in the Group's Annual Report for the year ending 30
September 2026.
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 IR AKBBBABKDAPD
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Avon Technologies
See all newsREG - Avon Technologies - Interim Results
AnnouncementREG - Avon Technologies - Holding(s) in Company
AnnouncementREG - Avon Technologies - Director/PDMR Shareholding
AnnouncementREG - Avon Technologies - Holding(s) in Company
AnnouncementREG - Avon Technologies - Notice of Results and Investor Presentation
Announcement