A series of “significant” new contract wins in the first half of this year have lifted defence manufacturer Avon Protection’s order book to a record high.
The 50% increase in the value of its orders combined with double-digit improvements in revenue and productivity combined to underpin a strong recovery for the Melksham-headquartered group.
Avon Protection, which specialises in protective gear, masks and breathing equipment for the military and first-responder markets, is part way through a transformation programme triggered by challenging markets and increasing overheads.
The group has spent the past few years recovering from a tough period during which its shares lost around 70% of their value as it struggled to overcome damaging delays in military orders from the US.
Chief executive officer Jos Sclater hailed this week’s first-half results, which were released to the London Stock Exchange with the heading ‘transformation gaining momentum’.
He told shareholders: “We are making excellent progress towards our medium-term goals and are increasingly excited by the growing momentum in our transformation programme.
“The results in H1 demonstrate that our strategy is working and pace is increasing, though we still have a lot to do.
“The work we have done so far to drive improvement has revealed further opportunities for operational improvement; this reinforces our confidence that we will deliver our medium-term goals.”
The record $199m (£156m) order book included a new contract award worth up to £38m from the MoD for general service respirator and filters, a new rebreather contract from the German Navy, an order worth $14m from the US for Avon’s ACH (Advanced Combat Helmet) and a $36m Next Generation IHPS (Integrated Head Protection System) delivery order from the US army.
Adjusted pre-tax profits for the period came in 66% higher at $8.8m on revenue up 24.2% to $127.1m.
Productivity improved by 23% against the same period last year, with a 45% reduction in scrap across all its seven factories in the UK and US.
Mr Sclater continuous improvement so far give the group confidence it could achieve or exceed its operational targets.
He added: "We are seeing a growing awareness of the importance of high-quality protection against chemical warfare and head injury.
“In particular, Russia’s deployment of chemical weapons in Ukraine has highlighted the need for effective respiratory protection.
“As the leading supplier of mission-critical head and respiratory protection to the US Department of Defence and other NATO countries, we are well positioned to help protect the people who are protecting us.
“More broadly, I am very pleased that we now have a much stronger business that is delivering on major programmes and is improving fast.
“We have moved quickly into execution phase of our strategic plan and are already seeing productivity improvement, new contract wins and further innovation to revolutionise our world leading product portfolio.”
Avon Protection, which changed its name in 2021 from Avon Rubber, employs more than 900 people in the UK and US.
