Avon Technologies buoyed by high demand for protection products

Melksham, UK – Avon Technologies plc has started its 2026 financial year strongly, reporting a “record start to the year” in its Avon Protection division.

In a 30 Jan trading update, the UK manufacturer said growth was supported by “sustained demand” for chemical, biological, radiological and nuclear (CBRN) protection products and a healthy order book.

The group said Avon Protection continued the positive momentum seen in the second half of fiscal 2025, benefiting from good operational gearing and a robust sales pipeline.

By contrast, Team Wendy reported a “strong order book but saw a slower first quarter,” reflecting delays to product testing and deliveries caused by the recent US government shutdown.

Avon said the disruption weighed on Department of War and other federal revenues in the quarter, while margins were also affected by planned investment ahead of higher production rates expected from the second quarter.

Assuming no further extended shutdowns, the group expects these impacts to be temporary, with “higher revenues, an unwind of elevated inventories and improved operational gearing expected over the remainder of the year.”

The update follows a strong Fiscal year 2025, ended 30 Sept 2025, during which group revenue at constant currency rose 13.8% year-on-year to $313.9 million (€265 million), while adjusted operating profit increased 30.8% to $40 million.

Group operating margin for the fiscal year rose to 12.8% from 11.5% a year earlier, with Avon Protection recording a margin of 19.9% and Team Wendy’s margin improving to 4.6%.

Avon said it closed last fiscal year with a record order book of $263 million, up 16% at constant currency.

Avon Protection’s order book increased by $45 million to $117m, driven by diversified defence demand, while Team Wendy’s order book stood at $146 million, reflecting accelerated helmet deliveries and shorter lead times.

At group level, Avon said it continues to anticipate fiscal year 2026 performance in line with the guidance provided in November last year: The company expects high-single-digit revenue growth during the year, and an adjusted operating margin within its 14–16% target range.

Furthermore, Avon expects its transformation costs to fall by more than 60% to around $6 million during the fiscal year.

Avon noted that the previous fiscal year marked the culmination of a three-year period focused on stabilising and strengthening the business.

Commenting on the update, chief executive Jos Sclater said the first phase of Avon’s strategy was continuing to deliver a “stronger, more sustainable business,” acknowledging that further work remains to improve efficiency and productivity at the group’s Cleveland facility.

“Having stabilised, strengthened and transformed Avon over the last three years, 2026 will see an increased focus on the growth stage of our strategy,” Sclater said.

In addition, Sclater said that investment in key programmes and new products is already producing “some promising early results.”