Avon Protection Share Price (AVON)

Avon awarded UK Ministry of Defence General Service Respirator contract worth up to £38m

CBRN respirators for all branches of the UK's armed forces to be supplied from Avon's Melksham facility, boosting UK's sovereign CBRN protection capability.

We are pleased to announce that Avon Protection has won the tender for the continued supply of the General Service Respirator ("GSR") and associated in service support for the UK Ministry of Defence ("MoD").

Avon has been supplying the MoD with GSR masks since 2018 and this new contract award will enable Avon to continue to help protect the lives of people serving in the UK Armed Forces, sustaining the UK's domestic CBRN protection production capability.

The contract, over four years, with five further 12-month option periods is valued at up to £38 million.

Actually the sp has not increased much after 95bn approval, and even after rishni announcement. I am only guessing but maybe the market had the US thing already built into sp. As for Rishni, it is ok making grandiose declarations of future spend, but he probably won't be the one who has to actually carry it out!

Yes defence should be up Monday and the woman in congress won't love me anymore

..Avons prospects undoubtedly now helped, either indirectly or directly, by the US house approval of a $61bn aid package for the Ukraine war effort. Be interesting to see how the markets react on Monday (defence sector stocks that is)

From Edison research -

Global geopolitical tensions have sparked higher defence spending by the US DoD

and NATO countries. The need for military protection is critical, with ballistic military

helmet and respirator demand expected by Avon to experience a CAGR of c 4%

from 2024–28, representing a significant boost to Avon’s growth prospects. This is

reflected in its order backlog of over $180m (a decade high), partially attributable to

a rise in head protection orders with c $60m of orders for NG IHPS and over $20m

for ACH GEN II. Delivery ramp-ups combined with inventory turnover improvement

and anticipated $10m annualised cost savings from the Irvine site closure should

help boost operating margins to the targeted c 15% level.