Avon Protection raises sights after first half boosted by new orders
Published: 03:12 21 May 2024 EDT
Avon Protection PLC (LSE:AVON), a maker of military helmets and gas masks, tweaked its full-year outlook after reporting a record order book and 66% profit growth in the first half.
The FTSE Small Cap group said its order book stands at $199 million, bolstered by significant strategic wins and orders in the first half and since its 31 March half-year stage including contracts from the UK Ministry of Defence for respirators, a rebreather contract from the German Navy and two helmet orders from the US Army.
Half-year revenue came to $127.1 million, up 24% year on year, while adjusted profit before tax rose to $8.8 million from $5.7 million a year earlier.
For the full year it now expects 10% revenue growth at an adjusted operating profit margin of 10%.
The shares rose 2.1% in early trading.
Broker Peel Hunt said: "Avon has had a very good first half, concluding with a strong order book at a record US$199m (50% growth YoY)."
"Strong cash generation has enabled Avon to reduce debt, placing it in a more stable financial position."
