Avon Rubber PLC (LON:AVON) has won a US$92.7mln (£72.7mln) contract which will see US Air Force pilots wear its new M69 aircrew mask.
The contract with the US Department of Defense, which also includes related accessories and support, runs for an initial five years plus two further one-year option periods.
It is a sizable deal for a company worth a shade over US$400mln.
READ: Avon Rubber sees profit in line
Avon, which is based in Melksham, near the city of Bath, expects deliveries to be in the second half of this year.
“I am delighted to announce this contract award which, following a collaborative development programme with the DoD, brings the M69 Aircrew Mask into production,” said chief executive Paul McDonald.
“This is a significant new multi-year mask system platform for Avon Protection and extends our capabilities into the important aviation sector.”
He added; “We are continuing to pursue a number of other identified opportunities with the DoD and Rest of World Military customers, both to extend our portfolio further and broaden our customer base.”
In a note to clients, analysts at Peel Hunt commented: “Avon’s business model continues to strengthen and we see plenty yet to come. Trading on 16.3x Sep 19E and 15.7x Sep20E, we reiterate our Buy recommendation and 1,500p target price.”
In late afternoon trading, Avon Rubber shares were 5.2% higher at 1,325p.
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