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Avon Technologies PLC on Wednesday said it is on track to meet or exceed its financial 2026 targets, as the company reported profit, revenue and order book increases, fuelled by protection demand. The Wiltshire, England-based military protection equipment manufacturer said pretax profit was $13.1 million in the financial year that ended September 30, multiplying from $2.3 million. As well as a rise in revenue, the increase in pretax profit was driven by operating profit growth as well net finance costs being reduced by 27% to $6.1 million from $8.4 million. Adjusted operating profit increased 28% to $40.3 million from $31.6 million. Statutory operating profit spiked 79% due to a $5.7 million amortisation of acquired intangibles and transformational costs of $15.4 million. Revenue rose 14% to $313.9 million from $275.0 million the year before, which Avon Technologies attributed to a ramp-up of ACH Gen II volumes in Team Wendy and growth in demand in Europe for its Avon Protection respiratory portfolio. Avon Technologies said its closing order book stood at $262.8 million on September 30, up 17% from $225.2 million the year prior. Comprising nearly half of the total closing order book, Avon Protection’s was up 63% year-on-year. The company pointed to ‘an increased focus’ on chemical, biological, radiological and nuclear protection as an explanation for the company’s revenue and order book growth. ‘The strategic impact of CBRN attacks in Ukraine on force mobility was a key driver for this and we are now also seeing armed forces shifting focus towards ’war-fighting readiness’. The market for law enforcement protective gear also continues to grow in response to civil unrest and greater demands for police and first responder protective equipment’, Avon Technologies said. Avon Technologies declared a final dividend of 17.0 US cents per share, up 5.6% from 16.1 cents. This resulted in a full-year payout of 24.6 cents, also up 5.6%, from 23.3 cents. Looking ahead, Avon Technologies said it has outpaced its original guidance for revenue growth for financial 2027, with operating margins on track to reach the target range of 14% to 16% in financial 2026. The company said it is ‘firmly on track to meet or exceed’ its key targets for the financial 2026, including high-single-digit revenue growth. Chief Executive Jos Sclater said: ‘Nearly two years ago, we set bold ambitions for the business, which could only be achieved by significant change. This year, in particular, required enormous tenacity and dedication from our employees. That effort is paying off. Adjusted EPS has grown by over 100% since 2023, the balance sheet now provides a strong foundation and strategic optionality, and we’ve launched several exciting new products which will support future growth. ‘As we near the completion of the first phase of our strategy, our shift to a continuous improvement culture is delivering real results and has been fundamental to dramatically increasing the production run rate within Team Wendy and expanding our market share in Avon Protection.’ Shares in Avon Technologies rose 7.4% to 1,998.00 pence on Wednesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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