19th Nov 2024 12:40
(Alliance News) - Avon Technologies PLC on Tuesday said it swung to a profit during its most recent financial year, as orders surged more than 40% higher.
The Wiltshire, England-based protective gear company formerly known as Avon Protection said it swung to a pretax profit of USD2.3 million during the financial year that ended September 30, from a loss of USD20.2 million a year prior.
Revenue grew 13% to USD275.0 million from USD243.8 million, while cost of sales increased 7.2% to USD169.2 million from USD157.9 million. General & administrative expenses reduced 12% to USD64.9 million from USD73.4 million.
Orders received during the year rose 41% to USD364.4 million from USD258.7 million last year, and the group's closing order book was 66% higher at a "record" USD225.2 million, compared to USD135.8 million the year before.
"This strong order intake was predominantly driven by growth in Team Wendy's next generation integrated head protection system, and second generation advanced combat helmet orders from the US Department of Defence and accessory sales," the company said.
Avon Technologies proposed a final dividend of 16.1 cents, up 5.2% from 15.3 cents the year before. This brought the total dividend for the year to 23.3 cents, 21% lower than 29.6 cents last year, however. Its interim dividend was roughly halved to 7.2 cents from 14.3 cents.
Chief Executive Officer Jos Sclater said: "It is now 18 months since we launched the Star strategy and we are making good progress. This is demonstrated by our much stronger financial performance, improving operating metrics and a fast-growing order book.
"As a result of the progress made during the year, we see the potential to reach our medium-term operating margin and [return on invested capital] guidance target ranges a year early, in 2026. We also expect the transformation programme to be largely complete by then, with an accompanying significant decrease in transformation cash costs providing the platform for a broader capital allocation strategy."
Shares in Avon Technologies were up 6.9% at 1,400.00 pence each in London on Tuesday afternoon.
By Emily Parsons, Alliance News reporter
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