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Shares plunged in Avon Protection PLC on Tuesday reported a swing to an interim loss as well as the resignation of Chief Executive Officer Paul McDonald, with effect at the end of its financial year.
Shares in the personal protection company's were 14% lower at 1,026.00 pence each in London on Tuesday morning.
For the six months ended April 2, the firm posted an interim pretax loss of $13.6 million versus a profit of $400,000 a year ago. Revenue was similar at $121.9 million from $122.0 million a year ago.
The closing order book fell to $110.7 million from $131.5 million. Net debt widened to $83.3 million from $44.1 million.
‘While we have experienced some specific issues impacting profitability, they have been identified. We are working proactively to address them,’ said outgoing CEO Paul McDonald. ‘The requirement for our world-leading, high-tech products has never been stronger,’ he added.
The Wiltshire, England-based personal protection company proposed an unchanged interim dividend of 14.3 US cents per share.
For its financial year 2022, Avon sees a ‘very strong macro demand environment’ that ‘drives medium-term confidence, but volatility of funding and timing of customer orders gives rise to risk to the second half year outlook on revenue mix.’ Inflation is expected to present a headwind, the firm added. The personal protection firm sees ‘a significant increase in expression of interest in our products,’ citing the Russian invasion of Ukraine.
Meanwhile, the company announced the resignation of CEO Paul McDonald, who has been in the role for 5 years and at the company for 19 years. After his resignation by the end of the financial year, he will support the transition to a new CEO, Avon said.
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