Avon Protection PLC Post Close Trading Update (8651O)
October 13 2021 - 1:00AM
UK Regulatory
TIDMAVON
RNS Number : 8651O
Avon Protection PLC
13 October 2021
13 October 2021
Avon Protection plc
Post Close Trading Update
Avon Protection plc ("Avon" or the "Group") today provides the
following post close trading update for its financial year ended 30
September 2021 ("FY21").
Trading update
Avon has continued to see good commercial momentum in the second
half of FY21, with order intake for the year of c.$280 million.
This represents total year-on-year order growth of 34% and growth
of 15% excluding Team Wendy. As a result, the Group has carried a
strong closing order book of $141 million into the new financial
year ("FY22"), up 39 % on 30 September 2020. This momentum
underpins confidence in the Group's growth expectations for
FY22.
The Group expects to report revenue of $250 million for FY21
(2020: $213.6 million), which is within the range indicated in our
trading update of 13 August 2021. This includes a Team Wendy
contribution of $41 million from the first 11 months of ownership,
in line with expectations at the time of acquisition.
As expected, we have seen revenue growth in our First Responder
business and Military respiratory portfolio, offset by declines in
Military ballistic revenue due to the previously announced delays.
Overall, Military revenue is expected to decline by 3% to $149
million with respiratory revenue growth of 10% being offset by a
31% decline in Military ballistic revenues. First Responder
revenues are expected to have increased by 2% to $61 million,
against a strong comparator in 2020, driven by very encouraging
growth in our ballistic protection portfolio.
Trading profitability in the remainder of FY21 was in line with
the expectations set out in the August trading update. The Group
will however recognise one-off, non-cash, ballistic protection
inventory adjustments, which are expected to reduce the reported
adjusted EBITDA margin for FY21 to between 15% and 16%.
Cash conversion has come through more strongly than anticipated
at the time of the August trading update. As a result, we expect
FY21 reported cash conversion of c.80% and net debt before lease
liabilities of $27 million at 30 September 2021.
Commenting, Paul McDonald, Chief Executive Officer, said:
" We have made considerable commercial progress over the last 12
months in continuing to build a broader portfolio of contracts,
increasing our pipeline of opportunities and making record levels
of investment in the business.
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. This is underpinned by a strong order book, a growing
and visible contract pipeline and our global market leading
positions in respiratory and ballistic protection."
Notice of Results
The Group will release its results for the year ended 30
September 2021 on 23 November 2021.
For further enquiries, please contact:
Avon Protection plc
Paul McDonald, Chief Executive Officer 01225 896 848
Nick Keveth, Chief Financial Officer
Rachel Stevens, Director of Investor Relations
MHP Communications
Andrew Jaques 0203 128 8570
Charlie Barker avonprotection@mhpc.com
Pete Lambie
Legal Entity Identifier: 213800JM1AN62REBWA71
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of those Regulations.
Note to editors:
Avon Protection plc is listed on the London Stock Exchange (LSE:
AVON) and is an innovative technology group, which designs and
produces life critical personal protection systems to maximise the
performance and capabilities of its customers, with leading
positions in the respiratory and ballistic protection markets for
the world's militaries and first responders.
For further information, please visit our website
www.avon-protection-plc.com .
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