Melksham, UK – Avon Rubber plc anticipates a sharp increase in its first-half revenue, partially helped by its acquisition of helmet manufacturing business Team Wendy in the US.
In its half-year trending update 9 April, the UK manufacturer said it expects revenue to come in at $122 million (€102 million) for the first six months of its current financial year ending 30 Sept. The figure is up by more than 40% compared to the previous year’s sales at $87 million.
Second quarter trading, Avon said, was strong “with ongoing positive momentum and continued strong order intake across its portfolio of life critical personal protection systems for the world's militaries and first responders.”
In addition, sale will include a first-time contribution of $20 million from Team Wendy, which was acquired in November last year.
“As a result and taking into account the current order book of $155m and expected order intake in the second half, the board remains confident of achieving its expectations for the current financial year,” said the trading update.
Breaking down sales, Avon said revenue for its military business rose 16% year-on-year during the first half, driven by strong growth in respiratory protection.
Orders received in the first six months were up 30% , including $38 million of initial orders under the NATO Support & Procurement Agency contract, $17 million under the US Department of Defense M69 aircrew mask system contract and the a recent $19 million order under its existing US Army integrated head protection systems (IHPS) contract.
In addition, Avon said it expected the US Army to start the tender process for a multi-year, multi-source full rate production contract for the next generation IHPS during the second half of its current financial year.
“We believe our product continues to represent the optimal solution for the customer and that the tender process will provide medium term visibility for the IHPS programme,” it added.
Within its first responder business, Avon saw strong demand across its “entire respiratory and ballistic protection range” with revenues increasing by 19% year-on-year in the first half and orders received up 29%.
The UK group will release its results for the six months ended 31 March on 25 May.