Avon Technologies Shares Surge on ‘Record Order Book’

On Tuesday, Avon Technologies (LON: AVON) announced strong preliminary results for the year ended 30 September 2024, sending its shares higher.

The company's shares surged 8.5% on the news, buoyed by significant growth in revenue, profitability, and a record order book.

Revenue increased by 12.8% to $275 million, driven by strong demand for the company's products.

Adjusted EBITDA surged by 21.6% to $43.4 million, reflecting improved operational efficiency and cost control, while adjusted operating profit soared by 49.1% to $31.6 million. Adjusted profit before tax increased by 80.7% to $25.3 million.

The company revealed it secured a record order book of $225 million, providing strong visibility for future growth.

The strong performance was attributed to several factors, including the successful implementation of the STAR strategy, strong demand for protective equipment, and the successful execution of continuous improvement programs.

The company believes its strategic initiatives have led to improvements in operational efficiency, cost reduction, and product innovation, while the ongoing demand for protective equipment across various industries, including defense, emergency services, and industry, has contributed to the company's growth.

Looking ahead, Avon said it expects continued growth and consistent returns in FY25, while it sees the potential to reach its medium-term operating margin and ROIC target ranges in FY26 (previously FY27). The company also has confidence in delivering “further sustained growth and improved returns over the long term.”