Acquisition lifts Avon results, 2021 set for growth

Melksham, UK – Avon Rubber plc has posted strong growth for the year ended 30 Sept, helped by its recent acquisition of 3M’s ballistic helmets and armour business in January this year.

Revenue for the full year grew 30.8%, to £168 million (€186 million), comprising 0.1% organic constant currency growth, 1% currency headwind and a 31.7% contribution from the helmets and armour segment, the UK rubber goods manufacturer announced 2 Dec. 

Adjusted operating profit was up 33.6%, at £30.2 million, reflecting strong organic trading performance and the positive impact of the US acquisition. Adjusted earnings per share rose to 13.8%.

"2020 has been a year of both significant strategic evolution and strong organic execution for Avon Rubber,” said chief executive Paul McDonald.

The company, he said, delivered “strong results ahead of expectations” and is in the midst of a transformation to become a “leading provider of life critical personal protection products.”

Avon, which divested dairy equipment unit milkrite | InterPuls in late September, has been investing in expanding its product portfolio in the protection segment. 

“This has enabled us to build a broader and more visible long-term contract portfolio to position the business to deliver further growth in 2021 and beyond,” McDonald noted.

For the 2021 fiscal year, Avon said it would remain focused on life critical personal protection business with “leading positions” in respiratory and ballistic protection.

The company said it had a strong opening order book of $101.7 million (€84 million), which it said provides “excellent visibility and confidence for 2021.” 

In addition, the manufacturer expects momentum to continue into 2021 for its 'first responder' products, designed for law enforcement customers.

In the medium-term, Avon said the outlook is underpinned by multi-year military contracts across the portfolio.