Avon Protection: Update after trade close

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Avon Protection plc (“Avon” or the “Group”) is providing the following update today after market close for its fiscal year ended September 30, 2021 (“FY21”).

Trade update

Avon continued to deliver strong business momentum in the second half of FY21, with order intake for the year of approximately $ 280 million. This represents total year-over-year order growth of 34% and 15% growth excluding Team Wendy. As a result, the Group recorded a strong closing order book of $ 141 million for the new fiscal year (“FY22”), up 39% as at September 30, 2020. This dynamic reinforces confidence in the growth expectations of the Group for FY22.

The Group expects to report revenue of $ 250 million for fiscal year 21 (2020: $ 213.6 million), which is within the range shown in our August 13, 2021 business update. This includes a contribution from the Wendy team of $ 41 million over the first 11 months of ownership, in line with expectations at the time of acquisition.

As expected, we saw revenue growth from our first responder business and our military respiratory portfolio, offset by lower military ballistic revenue due to previously announced delays. Overall, military revenue is expected to decline 3% to $ 149 million, with 10% respiratory revenue growth offset by a 31% decline in military ballistic revenue. First responder revenues are expected to increase 2% to $ 61 million, from a strong comparator in 2020, thanks to very encouraging growth in our ballistic protection portfolio.

Profitability from trading the remainder of FY21 was in line with expectations set out in the August trading update. However, the Group will record one-off, non-monetary adjustments to ballistic protection inventories, which should reduce the adjusted EBITDA margin published for FY21 between 15% and 16%.

The conversion to cash was stronger than expected at the time of the August trade update. As a result, we expect a reported FY21 cash conversion of approximately 80% and net debt before lease payables of $ 27 million as at September 30, 2021.

Commenting, Paul McDonald, CEO, said:

“We have made significant business progress over the past 12 months by continuing to build a larger contract portfolio, increasing our pipeline of opportunities and achieving record levels of investment in the business.

We are continuing strong commercial momentum in fiscal 22, which will also benefit from a strong ramp-up of bulletproof vests, as well as the strengthening of senior management, processes and infrastructure that we have put in place. in place over the past year while dealing with the ongoing disruption related to Covid. through our supply chains.

We remain well positioned for growth in FY22 and beyond and are more confident than ever about Avon Protection’s mid-term outlook. This is based on a solid order book, a growing and visible contract portfolio and our positions as world leader in the respiratory and ballistic protection market. ”

Notice of results

The Group will publish its results for the fiscal year ended September 30, 2021 on November 23, 2021.

Disclaimer

Avon Rubber plc published this content on October 13, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 13, 2021 06:01:07 AM UTC.


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