Avon Technologies backs annual outlook despite order book weakness

Avon Technologies PLC on Wednesday said it is ‘firmly on track’ to meet or exceed 2026 guidance despite some softness in its Team Wendy business.

The Wiltshire, England-based military protection equipment manufacturer said pretax profit ballooned to $13.5 million in the six months to March 31 from $3.1 million the year prior.

Revenue increased 6.8% to $160.8 million from $148.7 million although the closing order book was down 11.4% to $219.9 million from $247.0 million.

The lower closing order book is due to timing of DoW4 orders and temporary weakness in US commercial helmet demand in its Team Wendy subsidiary, Avon said.

Avon Technologies consists of two business units: Avon Protection,?a provider of advanced respiratory and integrated protective systems and Team Wendy,?a specialist in high-performance ballistic and impact protection helmet systems.

DoW4 follow-on orders are expected towards the end of the calendar year and the recovery in US commercial helmet demand expected in the second half of 2026.

Basic earnings per share totalled 35.0 US cents, compared to 8.1 cents a year ago.

Adjusted operating margin improved to 15.4% from 11.8%.

‘We delivered a strong first half performance, with revenue, profit and margin all up significantly, reflecting the long-term demand opportunity in our markets and the progress we have made in strengthening our operational execution,’ commented Chief Executive Officer Jos Sclater.

At Team Wendy, Avon said demand for advanced ballistic protection helmets from the US military remains strong.

But demand from US police and federal agencies was softer in the first half due to funding delays, although this is expected to recover in the second half of the year.

Avon Technologies said it is ‘firmly on track’ to meet or exceed 2026 guidance with ‘exciting’ long-term growth prospects.

Guidance is for high single-digit revenue growth and adjusted operating profit margin towards the top end of the 14% to 16% range.

The FTSE 250-listing said it is ‘increasingly confident’ in second half delivery with strong commercial and international pipelines and still sees ‘significant’ operational improvement opportunities in both businesses.

New mid-term growth targets will be set out with full-year results, it added.

An interim dividend of 8.1 cents per share was declared up 6.6% when compared to 7.6 cents a year ago.

Shares in Avon Technologies fell 6.6% to 1,500.00p each in London on Wednesday.

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