Defence manufacturer Avon Protection has said it is seeing the benefits of its transformation plan faster than expected, with annual revenues and profits now likely to be slightly higher than previously expected.
The Melksham-based group spent much of last year 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.
Now Avon, which specialises in protective gear, masks and breathing equipment for the military and first-responder markets, has told shareholders in a trading update that a focus on efficiency and “good operational execution” were contributing to faster-than-expected progress in changing the business’s fortunes.
As a result, revenue and profit growth for the current full year is expected to reach 11% – up from 10% previously forecast.
The group also announced a follow-on delivery order worth around $19.5m (£15.1m) from the US Defense Logistics Agency under its second-generation Advanced Combat Helmet framework contract announced in February 2022.
That contract, worth $204m, made Avon Protection the leading helmet supplier to the US defence department.
The helmet, pictured, uses shell moulding developed by Avon US subsidiary Ceradyne, the former 3M ballistic protection business which Avon bought in 2020, with liner and retention system technologies developed by Team Wendy, the Cleveland, Ohio-based head protection systems firm acquired by Avon earlier the same year.
Avon Protection CEO Jos Sclater said: “Our market-leading protection technologies and contract frameworks position us well in the current geopolitical environment.
“We have successfully rebased the business to create a fitter, stronger organisation and it is encouraging to see the benefits of our transformation plan and continuous improvement culture drive improved financial performance.
“We still have a lot of work to do but are increasingly confident that our strategic initiatives will enable us to meet our medium-term targets.”
The group, which changed its name from Avon Rubber in 2021, employs nearly 1,000 people in seven locations in the UK and North America.
It full-year results for 2024 are due to be released on 19 November.
In May the group said series of “significant” new contract wins in the first half of this year had lifted the value of its order book by 50% to a record high of $199m.
The orders 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 and a $36m Next Generation IHPS (Integrated Head Protection System) delivery order from the US army.
