(Alliance News) - Avon Rubber PLC on Friday said trading in the second quarter continued to be "strong", with ongoing positive momentum and continued strong order intake across its portfolio.
The Wiltshire, England-based respiratory protection equipment manufacturer expects to report revenue of USD122 million for the first half ended March 31, up 40% from USD87 million a year before. This includes a first-time contribution from Team Wendy of USD20 million during the first five months of ownership.
Avon Rubber's Military business revenue increased by 16% year-on-year, which was driven by "strong growth" in respiratory protection. Orders received in the first half of the year were up 30% from the previous year. This included USD38 million of initial orders under the NATO Support & Procurement Agency contract, USD17 million under the US Department of Defense M69 aircrew mask system contract, and USD19 million order under the existing US Army Integrated Head Protection System contract.
Its First Responder business also continued to see strong demand, with revenue increasing by 19% year-on-year in the first half, while received orders went up 29% due to the popularity of its respiratory and ballistic protection range.
As a result, and taking into account the current order book of USD155 million and expected order intake in the second half, Avon remains "confident of achieving its expectations for the current financial year".
"The weighting of revenue to the second half of the year, together with increased inventory holdings to manage longer material lead times, has reduced cash conversion in the first half; however the board expects full year cash conversion to be in line with its 90% plus guidance," said Avon Rubber.
Shares in Avon Rubber were up 1.1% at 3,468.83 pence in London on Friday.
By Zoe Wickens; zoewickens@alliancenews.com
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Avon Protection (AVON)