Melksham, UK – Avon Protection plc has delayed the announcement of results for its fiscal year 2021, ended 30 Sept, due to an ongoing strategic review of the body armour business.
In a 12 Nov statement, the company said it had launched the review as some of the parts for body armours, which were to be supplied to the US military, had failed in ‘first article testing’.
“Following the contract awards for the US Defense Logistics Agency (DLA) enhanced small arms protective inserts (ESAPI) and US Army Vital Torso Protection (VTP) ESAPI body armour plates, we have been engaged with our customers to complete the necessary product approval processes,” explained the manufacturer.
Disappointingly, Avond added, the VTP ESAPI plates have encountered a failure in first article testing, noting that the setback would “significantly delay the likely approval timetable for this product.”
Separately, the company said it had experienced further delays in obtaining final product approvals for the DLA ESAPI body armour plates, with approvals for this product now expected in the second quarter of its financial year ending 30 Sept 2022.
In light of these challenges, Avon said, the board has initiated a strategic review of the body armour business.
Avon said it has now delayed the announcement of its fully year results, initially planned for 23 Nov, to allow for a review of the carrying value of the assets related to the body armour business and the additional audit work arising from the ‘post balance sheet event.’
The company expects to announce its results, which will include the review of the body armour business, in early December.
Furthermore, Avon said it expected its revenue guidance for fully year 2022, which included body armour sales of $40 million (€35.5 million), to be "significantly reduced" due to the development.