StockMarketWire.com - Military equipment maker Avon Protection warned on performance for its current and next fiscal year following a delay in orders under existing contracts owing to COVID-19 related and supply chain disruptions.

'Whilst this COVID-19 related disruption is expected to be temporary in nature, the impact has resulted in a reduction in our revenue guidance for FY21 to between $245 million to $260 million,' the company said.

The cut to guidance came on the back of good progress in the second half of FY21, with order intake in the ten months to 31 July 2021 rising 13% to $221 million year-on-year, lifting the order book value to $146 million, up 21% year-on-year.

With supply chain disruptions and a tight US labour market expected to persist into next year, the company cut its FY22 revenue expectations to a range of $320 million to $340 million, but maintained current guidance for FY23.

In its military ballistic business, there was progress on delayed product approvals. Initial shipments under the First Article Testing contract for the DLA ESAPI was expected in the first half of FY22.

Sample plates for the VTP ESAPI contract were on track to be delivered in September for testing, with initial shipments expected in the second half of FY22.

'Avon has received a further $9m delivery order under the sole source first generation IHPS helmet contract, in addition to the $19m order already received in March, the company said.



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