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Avon Rubber warns on performance amid contracts delays
StockMarketWire.com
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Military equipment maker Avon Rubber warned on performance following a delay to first deliveries under its ballistics contracts with the US Army. A delay in first deliveries under U.S. Defense Logistics Agency Enhanced Small Arms Protective Inserts and U.S. Army Vital Torso Protection body armor contracts would reduce overall expectations for FY21, the company said.
Orders under the company's contracts for the U.S. Defense Logistics Agency Enhanced Small Arms Protective Inserts and U.S. Army Vital Torso Protection body armor would be delayed from H1 2021 to H2 as a result of a failure encountered in first article testing.
The company said, however, it remained confident in achieving its medium-term expectations.
Separately, a delay created by a protest against the U.S. Army Next Generation Integrated Head Protection System sole source contract, announced on 24 September 2020, was not expected to have any material impact on Group expectations for FY21, it added.
Avon Rubber also announced it had received its first orders worth $33 million under the NATO Support & Procurement Agency contract.
Under these orders, Avon Protection would supply Norway, Finland and Belgium with its respiratory protection including FM50 mask systems, filters, spare parts and accessories.
Deliveries under these orders were expected to commence in the company's current financial year and contribute to its expected rest of world military revenues for the year.
Story provided by StockMarketWire.com
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