Q2 trading update

26 March 2025

Avon Technologies plc

("Avon" or the "Group")

Q2 trading update

Upgrade to full-year expectations

Avon Technologies plc today provides an update on trading for the first six months of the financial year and an upgrade to full-year expectations.

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 DOD and good sales growth in Avon Protection across FM54 respirators and underwater rebreathers. This has driven a strong performance for the Group overall, with financial results for the six months ended 31 March 2025 expected to show good growth over the prior year.

In addition, Avon Protection has received two new European NATO orders for personal respirators for delivery to the Armed Forces of Ukraine. The first order is for FM50 respirators, and the second is for C50 protective masks. Both orders are for delivery in calendar year 2025 with some deliveries expected to be completed early in FY2026. 

Avon Protection has also signed a new framework contract from two European Navies for its MCM100 Multi-Role Rebreather, with quantities and delivery schedule to be finalised. The contract is a joint approach between these nations for MCM100 rebreather systems, related accessories, training, and maintenance and support under a 12-year program.

Overall, additional demand will result in FY2025 revenue growth being higher than previously expected.

In Avon Protection, revenue growth, mix and continuous improvement are all supporting strong operating profit margins. In Team Wendy, as expected, the costs associated with ramping up production and closing our Californian factory will impact H1 but we remain confident that Team Wendy will exit FY2025 with stronger profit margins into FY2026. Overall, we expect better than originally guided operating profit margins in the current year.

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.

FY2025 Outlook

Avon Technologies plc is therefore issuing the following update to FY2025 guidance:

· Revenue growth in excess of 10% (previous guidance: mid-single digit)

· Group adjusted operating profit margin above 12% (previous guidance: c.11.5%)

· All other FY2025 guidance remains unchanged

Notice of HY2025 Results

HY2025 Results are due to be released on 21 May 2025. Jos Sclater, Chief Executive Officer and Rich Cashin, Chief Financial Officer, will host a presentation for investors and sell-side analysts at 09:00 on the morning of 21 May.

Jos Sclater, CEO of Avon Technologies plc, said:

"We are proud of the contribution that Avon continues to provide to the security of NATO nations. The additional orders for provision of respiratory protection to Ukrainian war fighters and rebreathers for military divers allows both users to operate with confidence, knowing they are protected against increasingly prevalent threats in the harshest and most demanding environments."

"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."

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About Avon Technologies plc:

Avon Technologies plc make products that are trusted to protect the world's militaries and first responders. Our mission-critical systems enhance our customers' performance, efficiency and capability, whilst providing ever-increasing levels of protection.

We are renowned for our innovative thinking and our steadfast approach to manufacturing unrivalled products. Our portfolio includes Avon Protection which provides respiratory and protective systems and Team Wendy who supply helmet systems.

For further information, please visit our website www.avon-technologiesplc.com

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.