MELKSHAM, England—Avon Rubber P.L.C. anticipates a sharp increase in its first-half revenue, partially helped by its acquisition of helmet manufacturing business Team Wendy in the U.S.
In its half-year trending update April 9, the United Kingdom manufacturer said it expects revenue to come in at $122 million for the first six months of its current financial year ending Sept. 30. The figure is up by more than 40 percent compared to the previous year's sales at $87 million.
Second quarter trading was strong "with ongoing positive momentum and continued strong order intake across its portfolio of life critical personal protection systems for the world's militaries and first responders," Avon said.
The sale will include a first-time contribution of $20 million from Team Wendy, which was acquired in November last year.
"As a result and taking into account the current order book of $155 million and expected order intake in the second half, the board remains confident of achieving its expectations for the current financial year," the trading update said.
Breaking down sales, Avon said revenue for its military business rose 16 percent year-on-year during the first half, driven by strong growth in respiratory protection.
Orders received in the first six months were up 30 percent, including $38 million of initial orders under the NATO Support & Procurement Agency contract, $17 million under the US Department of Defense M69 aircrew mask system contract and a recent $19 million order under its existing U.S. Army integrated head protection systems (IHPS) contract.
In addition, Avon said it expected the U.S. Army to start the tender process for a multi-year, multi-source full rate production contract for the next generation IHPS during the second half of its current financial year.
"We believe our product continues to represent the optimal solution for the customer and that the tender process will provide medium-term visibility for the IHPS program," it added.
Within its first responder business, Avon saw strong demand across its "entire respiratory and ballistic protection range" with revenues increasing by 19 percent year-on-year in the first half and orders received up 29 percent.
Avon will release its results for the six months ended March 31 on May 25.