30th Jan 2026 11:44
(Alliance News) - Avon Technologies PLC on Friday said it is on track to meet or exceed the full-year guidance provided at its results in November, as it reported progress in the first quarter of its financial year.
The Wiltshire, England-based military protection equipment manufacturer said Avon Protection experienced a "record" start to the year, maintaining its positive momentum.
The company tied progress to sustained demand for its chemical, biological, radiological, and nuclear protection products, alongside a healthy order book and sales pipeline and good operational gearing.
Avon Technologies said Team Wendy experienced a slower first quarter, but has kept a strong order book.
The company explained that the recent US government shutdown pushed back product testing and deliveries, contributing to weaker-than-expected Department of War and federal revenue.
It sees these impacts as temporary, assuming no further shutdowns, with "higher revenue, unwind of higher inventories and improved operational gearing expected over the remainder of the year."
Avon backed the guidance given at its full-year results in November, where it said it expects to report high-single-digit revenue growth, and an adjusted operating profit margin within the 14% to 16% range.
Revenue for the financial year ended September 30, 2025 came in at USD313.9 million, while its adjusted operating profit margin was 12.8%.
The company also expects a greater than 60% decrease in transformation costs at around USD6 million, coupled with cash conversion of over 80% before transformation costs.
Shares in the company were down 1.6% at 1,760.12 pence each on Friday morning in London.
"The first phase of our strategy to enhance operational performance through continuous improvement continues to deliver a stronger, more sustainable business. While there is still a lot to do to improve operational efficiency and productivity in our Cleveland facility, the momentum and capability we have built in our people is clear, we are making progress," said Chief Executive Jos Sclater.
"We remain on track to meet or exceed our FY26 financial targets and look forward to sharing the next phase of our strategic development alongside our interim and full year results."
Avon Technologies is scheduled to publish its interim results for the six months to March 31, on May 13.
By Christopher Ward, Alliance News reporter
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