Avon Protection - Pandemic disruption masks commercial progress

The impact of the pandemic on Avon Protection has intensified during H221. Despite a strong commercial performance management has lowered guidance significantly for FY21 and FY22 and we have reduced our estimates accordingly. The reduction comes on top of the previously announced deferrals to new ballistic protection contracts that remain on track for first delivery in FY22. We have lowered our FY21 and FY22 fully diluted adjusted EPS by 43% and 27% respectively to reflect the guidance. Management anticipates recovering to existing expectations in FY23 and needs to focus on execution and delivery to restore investor confidence.