Avon Protection swings to loss, CEO to leave

Avon Protection tumbled on Tuesday after saying it swung to an interim loss and announcing the departure of chief executive Paul McDonald.

In the half year to 2 April, the company swung to a pre-tax loss of $13.6m from a profit of $0.4m in the same period a year earlier, with revenues virtually flat at $121.9m versus $122.0m.

Avon said the extended delay in the sign-off of the US federal budget impacted customers who are dependent on federal funding, notably the US Department of Defence and its US first responder customers. The absence of an agreed budget has resulted in orders being delayed, with consequences both for the company’s order receipts and revenue mix, it said.

During the period, Avon received $113.6m in orders, down from $167.9m a year earlier, mainly due to lower US Department of Defence orders and also due to strong orders in the prior year, at the outset of the NATO Support and Procurement Agency contract in October 2020.

Avon - which specialises in the engineering and manufacturing of respiratory protection equipment for military, law enforcement and fire personnel - also announced the departure of chief executive Paul McDonald after five years in the role and 19 years with the company.

Chair Bruce Thompson said: "Paul has been instrumental in the transformation of Avon Protection into a world leader in respiratory and head protection technology, and I am grateful for his dedication and commitment during his tenure."

At 0920 BST, the shares were down 16% at 1,006.03p.