Avon Protection sees ‘significant’ long-term growth opportunities

Melksham, UK – Avon Protection plc has seen a decline in annual earnings but expects a ‘strong performance’ in its 2023 financial year on thr back of a “solid order intake.”

During its fiscal year ended 30 Sept, the UK group saw EBITDA (earnings) decline by nearly 39% year-on-year to $25.5 million (€24 million), on 9.1% higher sales of $272 million.

Adjusted operating profit fell 61% to $10 million, during the period, while adjusted earnings margin fell to 9.4% from 15.1% reported last year.

The results, said Avon, reflect “a combination of product-mix shift and operational challenges, including supply-chain issues.

But Avon remains upbeat about the short-term outlook of the business, noting a “much-improved operational performance in the second half.”

During the second six months, Avon said margins were up at 12.9% following improvement in product-mix and manufacturing efficiencies.

Furthermore, Avon said it made “significant progress” towards reducing overheads, with a saving of $21 million per annum.

In addition, the UK group has taken up forward ordering of long lead-time components in the face of supply-chain disruption.

“We have made good progress in 2022 preparing for a new chapter of growth and future value generation, including restructuring some areas of the business and resolving legacy execution issues,” said Bruce Thompson, executive chair.

There is, he went on to say, “a significant long-term growth opportunity” for Avon, with demand for respiratory and head protection systems being “as strong as ever”.

For the 2023 financial year, Avon said it has an opening order book of $151.3 million, which provides the group with good visibility going into the new financial year.