• Swindon & Wiltshire Manufacturing
• Tuesday November 21 2023
• Author Name: Peter Davison

Avon Protection’s financial results swing to annual loss

Avon Protection, the personal protection company which manufactures defence equipment for military, police, industrial and fire service personnel from its factory in Melksham, has reported a $20 million loss from continuing operations for the year ended September 30 – down on the previous year’s $6 million profit.

The firm told investors this morning (Tuesday) that revenue from continuing operations fell 7.5 per cent to $243.8 million from $263.5 million, mainly due to weaker demand in respiratory protection.

Order intake decreased 3.4 per cent to $258.7 million, but the order book closed up 12 per cent at $135.8 million.

Profits fell by eight per cent to $243.8 million, due in part to higher costs associated with manufacturing head protection products.

The company said that in 2024 it expects to see high-single-digit revenue growth.

CEO Jos Sclater 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.”