Avon Rubber secures 10-year mask systems contract with NATO
Avon Rubber has been awarded a 10-year contract by the NATO Support & Procurement Agency to supply FM50 mask systems, powered and supplied air systems, filters, spare parts and accessories.
Aerospace and Defence
10,383.65
17:10 19/04/24
Avon Protection
1,190.00p
16:40 19/04/24
FTSE 250
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FTSE 350
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The company said it expects to receive the first order under this contract shortly, with initial deliveries contributing to its expected Rest of World Military revenues for the 2021 financial year.
Chief executive officer Paul McDonald said: "I am delighted that Avon Protection's world leading expertise in respiratory protection has been recognised by NATO through this contract award.
"This contract award reflects continued delivery of our strategy to further broaden our customer base and maximise the value from our current portfolio."
Avon Rubber specialises in the engineering and manufacturing of respiratory protection equipment for military, law enforcement and fire personnel, and milking equipment for dairy farmers.
At 0925 BST, the shares were up 3.4% at 3,547.65p.
Broker Peel Hunt said: "This further underpins our expectations for RoW revenues and is a contract that we have been tracking as a possible win, so we are not changing our numbers on the back of the announcement.
"However, we note that not only does it bring all of NATO on to the latest FM50 technology, it also covers a very comprehensive suite of products, including powered air and all associated filters and accessories, which offer good margins and attractive levels of aftermarket and recurring revenue."
The broker reiterated its 'buy' recommendation and 4,200p price target.