Avon Protection Share News (AVON)

(Sharecast News) - Avon Rubber announced on Wednesday that its Avon Protection division has been awarded a sole source requirements contract to supply the United States Department of Defense with its 'M50 Mask System', related spares and accessories.
The FTSE 250 company said the contract had an initial maximum value of $50m (£39.97m), over five years.

It said Avon Protection expected to receive the first order under the contract "shortly", with deliveries set to start in the second half of the current financial year, contributing to the group's expected military revenues for the 2020 financial year.

"I am delighted to announce this sole source M50 sustainment contract which further underpins the outlook for our military business and demonstrates our long-term relationship with this important customer," said chief executive officer Paul McDonald.

"The M50 mask system remains an important part of our Avon Protection portfolio, with the installed base of over two million masks continuing to support strong sustainable revenues from replacement mask systems as well as filters, spares and accessories."

At 0810 BST, shares in Avon Rubber were up 1.09% at 3,255p.