Avon Protection warns on profits as Ukraine war lifts order enquiries

6th Apr 2022 08:05

(Sharecast News) - Body armour and helmet maker Avon Protection said it had seen a rise in enquiries as a result of the Russian invasion of Ukraine as it warned that annual underlying earnings would be lower than expected.

The company on Wednesday said it was in active discussions ongoing with customers "regarding potential incremental orders across both respiratory and helmet products".

"While these discussions remain ongoing and the quantum and timing of resultant orders are still to be determined, the impact of this growth in demand is most likely to be seen in 2023 and beyond, and as such the board continues to have a range of expected full year revenue outcomes for 2022 consistent with market expectations," Avon said.

"Full year underlying earnings will therefore be lower than previously expected."

It added that profitability in the second half of its fiscal year was expected to improve versus the opening six months but would not offset the weakness experienced in the period, which was hit by lower sales mix and higher manufacturing costs.