Avon Protection - Confirming the growth path

Avon Protection has indicated that management guidance for FY21 revenue and EBITDA margin has been achieved before an additional one-off, non-cash inventory write-down of around $4m in ballistics. Cash generation was better than anticipated after record levels of investment and order intake remained strong despite previously indicated pandemic delays. The healthy opening backlog underpins strong growth in FY22 as ballistics revenues ramp up, Team Wendy makes a full year contribution and EBITDA margins should recover as volumes improve. Following COVID and the ballistics deferrals, Avon’s focus on protection markets continues to offer a strong pipeline of potential contracts to support continued growth in FY23.