Avon Protection (LON: AVON) shares are down in early trading on Wednesday following the announcement of a US Army next-generation ballistic helmet contract award.
The contract is worth up to $87.6 million over two years and will see the company develop and supply the US Army with the next-generation Integrated Head Protection System (IHPS) as part of a dual-sourced programme.
The deal replaces the next generation IHPS contract announced on 24 September 2020, which was removed due to a competitor protest.
Following the award, the US Army has placed an order worth $1.3 million for the first test samples, which will be delivered in the first half of Avon's 2022 financial year.
Production under the contract will continue from the existing initial production contract for the first generation IHPS which will end in 2022.
Paul McDonald, CEO of Avon, said: “I am delighted that Avon Protection will continue to work with the U.S. Army to deliver the next generation Integration Head Protection System.
“This contract demonstrates our ongoing commitment to developing next generation ballistic protection systems and further strengthens the medium-term outlook.”
The company's shares are currently down 1.33% at 1776p.
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