LONDON (ShareCast) - (Sharecast News) - Shares in Avon Technologies rallied on Wednesday, after the protective equipment specialist posted a surge in full-year earnings and forecast further growth.
The firm, which makes gas masks and helmets for the military and police, saw revenues jump 14.1% in the year to 30 September to $313.9m, while the order booked closed up 16.7% at $262.8m.

Adjusted earnings before interest, tax, depreciation and amortisation rose nearly 19% to $51.5m.

Jos Sclater, chief executive, said: "Nearly two years ago, we set bold ambitions for the business, which could only be achieved by significant change. This year in particular required enormous tenacity and dedication from our employees. That effort is now paying off."

Avon said the production run rate at Team Wendy, its US helmet business had "dramatically" increased, while it had expanded market share in Avon Protection, its advanced respiratory systems business.

Looking to the current year, Avon acknowledged that US healthcare costs continued to be a headwind.

However, it flagged continued above-market growth, boosted by investment in both product development and sales and marketing. Revenues were slated to grow by high single digits, while the adjusted operating profit margin was forecast between 14% and 16%.

Sclater added: "We are now a stronger business with more growth opportunities, underpinned by disciplined investment and relentless operational improvement."

As at 0900 GMT, the stock was up 6% at 1,969.59.

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