Shares in military and law enforcement equipment specialist Avon Technologies jumped 13% after it said full-year results would beat market expectations.
The stock has now risen around 26% over the last six months as the Wiltshire-headquartered group benefits from strong momentum and a significantly increased order book.
In a trading update for the year ended 30th September 2026, Avon said it expects revenue growth of approximately 12.5%, compared with 13.8% in FY25.
Adjusted operating profit margin is expected to be “comfortably above” its previous guidance range of 14-16%, helped by some beneficial one-off items during the year. The margin was 12.8% in FY25.
Higher operating profit is also expected to push return on invested capital significantly above guidance of more than 17%.
Year-end net debt, excluding lease liabilities, is expected to be approximately $34m, with full-year cash conversion above 85% and leverage below 0.5x.
Avon Technologies owns Avon Protection and Team Wendy and supplies protective equipment used by more than four million military personnel and first responders across more than 70 markets.
CEO Jos Sclater (pictured) said the business had “transformed its operational and financial performance” over the last three years.
“The next phase of our strategy is: Improve. Grow. Compound,” he said.
“We will invest behind our leading market positions, strong customer relationships and the step-change opportunities where we have a clear right to win.
“Together, these initiatives provide a compelling organic growth plan and underpin our confidence in Avon’s prospects.”
Sclater added that Avon could also create further shareholder value through selective acquisitions of protection technology businesses.
“Combined with disciplined capital allocation, we believe this provides a repeatable model to compound shareholder value over the long term,” he said.