Avon Protection PLC (LSE:AVON), a provider of protective equipment to the military and emergency services, said its full-year underlying earnings will be lower than previously expected, pushing its shares down as much as 25%.
The company said profitability in the first half was impacted by a weaker-than-expected sales mix and additional manufacturing costs, particularly in the helmets business, due to supply chain and process inefficiencies.
“Profitability in H2 is expected to improve versus H1 but will not offset the weakness experienced in the period,” it said in a trading statement for the six months to end-March 2022.
The company said it has seen a notable increase in customer enquiries following Russia’s invasion of Ukraine, but the impact of this growth in demand will most likely be seen in FY23 and beyond.