Avon Technologies Shares Slide Despite Strong Demand and Steady Outlook

Avon Technologies PLC (LON: AVON) has affirmed its full-year guidance, buoyed by robust demand for its protective technologies, despite headwinds faced by its Team Wendy subsidiary.

The announcement came alongside the Group's Annual General Meeting (AGM) held today at its Melksham facility.

Despite the positives, shares are trading lower shortly after the open on Friday.

The company's Q1 trading update revealed continued positive momentum for Avon Protection, driven by sustained demand for CBRN (Chemical, Biological, Radiological, and Nuclear) protection products. Avon Protection experienced a record start to the year, supported by good operational gearing and a healthy order book and sales pipeline.

Team Wendy, another segment of Avon Technologies, experienced a slower first quarter. Revenue was impacted by the U.S. government shutdown, which delayed product testing and deliveries affecting Department of War and federal revenue. The planned investment in ramping production rates in Q2 also held back margins during the first quarter.

Avon anticipates that the impacts on Team Wendy are temporary, assuming no further extended government shutdowns. Higher revenue, the unwinding of higher inventories, and improved operational gearing are expected over the remainder of the year.

At the group level, Avon maintains its anticipation of full-year performance consistent with the guidance provided at FY25 results in November. The company is underpinned by continued robust demand for the Group's protective technologies.

Jos Sclater, Chief Executive Officer, commented, “The first phase of our strategy to enhance operational performance through continuous improvement continues to deliver a stronger, more sustainable business.” He noted ongoing efforts to improve operational efficiency and productivity, particularly at the Cleveland facility.

Sclater emphasized the company's shift towards growth, stating, “Having stabilised, strengthened and transformed Avon over the last three years, 2026 will see an increased focus on the growth stage of our strategy.” Avon is investing across key programs and new products to strengthen its competitive position and expand addressable markets, with promising early results.

The company remains confident in meeting or exceeding its FY26 financial targets. Further strategic developments will be shared alongside the Interim and Full Year results.

Avon will report Interim Results for the six months ending 31 March 2026 on 13 May 2026.