Body armor strategic review

RNS Number : 1577S

Avon Protection PLC

12 November 2021

 

12 November 2021

Avon Protection plc

Body armor strategic review

Avon Protection plc ("Avon Protection" or "the Group") today provides an update on its body armor business.

Body armor update

Following the contract awards for the U.S. Defense Logistics Agency ("DLA") Enhanced Small Arms Protective Inserts ("ESAPI") and U.S. Army Vital Torso Protection ("VTP") ESAPI body armor plates, we have been engaged with our customers to complete the necessary product approval processes.  Disappointingly, the VTP ESAPI plates have encountered a failure in First Article Testing which will significantly delay the likely approval timetable for this product.

Separately, we have experienced further delays in obtaining final product approvals for the DLA ESAPI body armor plates, with approvals for this product now expected in the second quarter of our financial year ending 30 September 2022 ("FY22").

Strategic review of body armor business

In light of these challenges, the Board has initiated a strategic review of our body armor business.

Our FY22 revenue guidance included approximately $40 million of body armor revenue. In light of the above, the financial contribution from our body armor business in FY22 and beyond will be significantly reduced, with the ultimate impact, including any associated cost savings, depending on the outcome of the review process.

These issues and the strategic review are restricted to the body armor business, with the Group's leading respiratory protection and helmet product portfolios unaffected.

Delay to FY21 results announcement

Our underlying trading results for FY21 are expected to be in line with the guidance set out in the post close trading update of 13 October 2021.

We have delayed the announcement of our FY21 results, initially planned for 23 November 2021, to allow for a review of the carrying value of the assets related to the body armor business and the additional audit work arising from this post balance sheet event. 

We will confirm a revised announcement date, which we expect to be in early December, as soon as practicable. We will include an update on our strategic review of our body armor business and provide updated guidance for FY22 and beyond alongside our FY21 results announcement.

For further enquiries, please contact:

Avon Protection plc

Paul McDonald, Chief Executive Officer  [phone]

Nick Keveth, Chief Financial Officer

Rachel Stevens, Director of Investor Relations

MHP Communications

Andrew Jaques    [phone]

Charlie Barker  [phone]

Peter Lambie [e-mail]

Legal Entity Identifier: 213800JM1AN62REBWA71

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") EU no.596/2014. Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

Note to editors:

Avon Protection plc is listed on the London Stock Exchange (LSE: AVON) and is an innovative technology group, which designs and produces life critical personal protection systems to maximise the performance and capabilities of its customers, with leading positions in the respiratory and ballistic protection markets for the world's militaries and first responders.

For further information, please visit our website www.avon-protection-plc.com.

 

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