Avon Protection PLC (LSE:AVON) reported a 9.1% increase in revenue to $271.9mln but a 74% fall in adjusted pre-tax profits to $6.1mln in the year to 1 October 2022.
The provider of protective equipment to the military and emergency services said adjusted EBITDA margins of 9.4% were down from 15.1% in 2021, reflecting a combination of product mix shift and operational challenges, including supply chain issues.
Looking ahead, quarter one performance to date has been in line with expectations while an opening order book of $151.3mln provides good visibility going into the new financial year, it said.
Avon forecast mid-single-digit revenue growth, excluding armour, driven by the start of NG IHPS deliveries and growth in global head protection, which will offset modest declines in European respiratory following a very strong 2022.
The group said armour will continue to be a headwind for reported results, although it expects to have fully withdrawn from this market by the end of 2023.
Bruce Thompson, executive chair, said: “The demand for our world-leading respiratory and head protection systems is as strong as ever, and we remain focused on protecting those who protect us with our innovative solutions."