Avon Protection 'star rising' despite falling sales, earnings

Melksham, UK – Avon Protection is entering a ‘transform stage’ under its STAR strategy to ‘strengthen, transform, advance and revolutionise’ its business.

The UK rubber/polymer-based products maker exited the “loss-making armour business” as of 30 Sept, while working to strengthen its position in other market areas.

Within the 'transform' phase, Avon is focused on footprint optimisation, operational efficiency and commercial optimisation, as well as 'functional and programme management' improvements.

The goal is to deliver "improved margins, cash flow and returns on capital for our shareholders,” said Avon Protection CEO Jos Sclater said in a 21 Nov statement.

Avon Protection, believes Sclater, is “well positioned to become the largest supplier of ballistic helmets” to the US department of defence (DOD).

This, he added, will complement the company’s existing position as a “leading provider of respiratory products to the DOD and other NATO countries”.

For the 'advance' stage of its strategy, Avon's respiratory protection unit has been rebuilding its sales pipeline, towards winning new contracts for boots and gloves.

For revolutionising, Avon said it had secured a number of funded R&D programmes related to new filter, 'shallow water rebreather', and traumatic brain injury mitigation systems.

Despite the upbeat assessment, Avon Protection reported an 8% year-on-year decline in adjusted earnings (EBITDA) to $35.7 million (€32.7 million) for the fiscal year ended 30 Sept.

Revenue declined 7.5% year-on-year to $244 million as orders received for the year fell 3.4% to $259 million.

Closing order book, however, was up 12.3% at $136 million, with Avon Protection expecting a “high-single-digit” increase in sales for the 2024 fiscal year.