Avon Protection plunges as supply bottlenecks hit revenue outlook

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Avon Protection PLC (LSE:AVON) (LSE:AVON) fell 22% to its lowest points since the coronavirus crash last year after the gas mask maker cut its revenue guidance.


The FTSE 250-listed defence sector supplier, formerly known as Avon Rubber, said there was an increasing impact from order delays, supply chain disruption and a “tight” US labour market.


Receipt of US$165mln of expected orders has been delayed, including a significant M50 gas mask order, blamed on “procurement bottlenecks”, while slow supply of components has delayed the shipment of another US$6mln of deliveries under existing orders.


Avon said there were “remaining uncertainties as to the timing of receipt of other orders that we expect to receive and ship before the end of the financial year”.


Revenue is now expected of around US$245-260mln (GBP178-188mln), compared to GBP168.0mln for the previous full year.

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