26th Mar 2025 09:47
(Alliance News) - Avon Technologies PLC on Wednesday said it has produced "a strong performance" in the six months ended March 31.
In response, shares in Avon were trading 3.8% higher at 1,422.00 pence in London on Wednesday morning.
The Wiltshire, England-based protective gear company further said: "Overall, additional demand will result in FY2025 revenue growth being higher than previously expected."
Avon now expects revenue growth exceeding 10% for the year ending September 30, having previously guided for mid-single digit growth.
It also changed its adjusted operating profit margin forecast to above 12% from around 11.5%.
"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 [Department of Defense] and good sales growth in Avon Protection across FM54 respirators and underwater rebreathers," the company explained. "This has driven a strong performance for the group overall, with financial results for the six months...expected to show good growth over the prior year."
Avon said it "[remains] confident" that Team Wendy will finish the current year with stronger profit margins going into financial 2026, despite costs from "ramping up production and closing our Californian factory" impacting its first-half results.
Meanwhile for Avon Protection, "strong operating profit margins" are supported by "revenue growth, mix and continuous improvement".
The company also said that Avon Protection has received two new orders for personal respirators, from Europe's NATO for delivery to Ukraine's armed forces in calendar 2025. Additionally, the business has signed a new framework contract for its MCM100 multi-role rebreather "from two European navies".
"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," Avon Technologies added.
Chief Executive Officer Jos Sclater commented: "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."
By Emma Curzon, Alliance News reporter
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