(Alliance News) - Avon Rubber PLC on Thursday confirmed a modification to an existing US Army Integrated Head Protection System low-rate initial production contract to increase the value by an estimated USD28.4 million.
As part of the modification, the US Army has placed an order under this contract worth USD18.9 million, with deliveries expected to commence in Avon's current financial year.
Shares in the midcap personal protection systems maker were 1.5% higher in London on Thursday morning at 3,206.00 pence each.
The original contract, signed last September, was worth up to USD93 million. The deal followed on from an existing low-rate initial production contract for the integrated head protection system which comes to an end in 2021.
Avon has also been awarded contracts for the US Defense Logistics Agency's enhanced small arms protective inserts and US Army's vital torso protection body-armour plates.
Deliveries under these two contracts are not expected to start until the first half of its 2022 financial year, however.
In late December, Avon's Protection business received its first orders worth USD33 million under a NATO Support & Procurement agency contract.
By Paul McGowan; paulmcgowan@alliancenews.com
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Avon Protection (AVON)