13th Oct 2021 10:56
(Alliance News) - Avon Protection PLC on Wednesday said it expects to post growth in revenue for its recently ended financial year, however additional costs have led the company to lower its margin guidance further.
The Wiltshire, England-based company - formerly known as Avon Rubber - makes respiratory protection equipment for use by military, police, industrial and fire service personnel.
For the year ended September 30, Avon said it expects to report revenue at USD250 million, up 17% from USD213.6 million the year before, and in line with the guidance range announced in August of USD245 million to USD260 million.
The revenue figure includes a contribution of USD41 million from combat helmet maker Team Wendy from the first 11 months of ownership.
This was due to revenue growth from the First Responder business by 2% to USD61 million, through a strong performance from Avon's ballistic protection portfolio. Meanwhile, Military revenue was down 3% to USD149 million, as 10% growth from the respiratory portfolio was more than offset by a 31% fall in ballistic revenue.
Due to recognising one-off, non-cash ballistic protection inventory adjustments, the company has lowered its earnings before interest, tax, depreciation and amortisation margin guidance to between 15% and 16% for its current financial year.
In August, Avon had already lowered its Ebitda margin guidance range to between 17% and 18%. By comparison, the company reported an adjusted Ebitda margin of 23% in financial 2020.
Avon reported good commercial momentum in the second half, with order intake for the year rising 34% year-on-year to USD280 million.
As at September 30, the group's closing order book stood at USD141 million, up 39% from the same date the year prior, fostering confidence for Avon's current financial year.
"We carry significant commercial momentum into FY22, which will also benefit from a strong ramp-up in body armor, as well as the strengthened senior management, processes and infrastructure we have put in place over the past year whilst navigating the ongoing disruption related to Covid through our supply chains. We remain well set for growth in FY22 and beyond and are as confident as ever about the medium-term prospects of Avon Protection," said Chief Executive Officer Paul McDonald.
Avon will release its annual results on November 23.
Shares in Avon Protection were down 2.1% at 1,806.00 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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