Avon Technologies Plc, a manufacturer of protective equipment for militaries and first responders, released its preliminary financial results for the fiscal year ended September 30, 2024. The company reported strong financial performance, with significant growth in revenue, operating margin, return on invested capital (ROIC), and free cash flow. The companys leverage ratio also improved, dropping below 1x.
Operationally, Avon Technologies made progress with its Continuous Improvement (CI) initiatives, with all factories implementing CI programs. This resulted in notable improvements in operational key performance indicators (KPIs), including a 21% increase in productivity, a 54% reduction in scrap across all factories, and a 7% increase in group inventory turns.
The companys transformation efforts are on track, including the consolidation of helmet manufacturing sites. Additional CI opportunities with strong payback potential have been identified, and it is expected that the transformation operational expenditure will be self-funded through CI improvements.
Avon Technologies reported a record order book of $225 million, providing confidence for FY25 and beyond. This was driven by contract wins with the UK MOD, Australian Defence Force, US DOD, and orders from the New Zealand and German Navy.
Looking <mark style="background-coloryellow">ahead</mark>, Avon Technologies expects continued growth and consistent returns in FY25 as it implements its footprint and manufacturing optimization programs. The company anticipates the potential to reach its medium-term operating margin and ROIC target ranges in FY26, a year earlier than previously expected.
The companys CEO, Jos Sclater, expressed satisfaction with the progress made under the STAR strategy, highlighting improved financial performance, operational metrics, and a fast-growing order book. He also emphasized the organizations ability to change and translate strategy into action, building a culture focused on continuous improvement.
| Year | Orders Received | Closing Order Book | Revenue | Adjusted Operating Profit | Adjusted Net Finance Costs | Adjusted Profit Before Tax | Adjusted Basic Earnings Per Share | Total Dividend Per Share | Net Debt Excluding Lease Liabilities |
|---|---|---|---|---|---|---|---|---|---|
| 2024 | $364.4m | $225.2m | $275.0m | $31.6m | $6.3m | $25.3m | $0.699 | $0.233 | $43.5m |
| 2023 | $258.7m | $135.8m | $243.8m | $21.2m | $7.2m | $14.0m | $0.403 | $0.296 | $64.5m |
| Change | 40.9% | 65.8% | 12.8% | 49.1% | -12.5% | 80.7% | 73.4% | -21.3% | -32.6% |