Avon Protection PLC (LSE:AVON), the world leader in respiratory and ballistic protection, saw revenues and underlying profits slump in financial year 2023 but is confident sales will grow again in 2024.
In the 12 months to 30 September, revenues fell by 7.5% year on year to reach just under US$243.8 million – in line with market expectations – with a weakened demand for respiratory products offset by strong growth in the sales of advanced military helmets, the company's earnings statement revealed.
Underlying profits fell by 8% to US$35.7 million, caused by weaker business in Avon's higher margin divisions and ramped-up costs for manufacturing head protection products.
In financial year 2024, the London-listed company expects high-single-digit revenue growth, with growing sales of its NG IHPS and the ACH GEN II next-generation military helmets, which have already received strong orders.
Helmets have been key in 2023. Source: Company
Jos Sclater, chief executive officer, said: “We are now entering the transform stage of our strategy with a focus on delivering improved margins, cash flow and returns on capital for our shareholders.
“Avon has an exciting future and is well positioned to become the largest supplier of ballistic helmets to the U.S. Department of Defense, complementing our existing position as the leading provider of respiratory products to the DOD and other NATO countries.”
Shares in Avon Protection remained flat on Tuesday morning, having opened at around 800p.