Melksham, England — Avon Rubber P.L.C. has finished its 2019 fiscal year on a high note, having secured $340 million worth of long-term contracts and made a multi-million-dollar acquisition in the U.S.
Annual sales were up 4.2 percent to $232 million compared to the year before, while adjusted operating profit soared 10.4 percent to $41.2 million.
The company's protection segment, which produces protection masks, posted 5.9 percent higher revenues, reflecting a 26 percent increase in sales to military customers.
The dairy segment, which accounts for 30 percent of total sales, also saw improved farmer confidence and improved order book.
"We have delivered strong results ahead of expectations… and continued to build our order book to provide excellent visibility for 2020," CEO Paul McDonald said in a statement describing 2019 as a "transformational year" for the company.
During the fiscal year, which ended Sept. 30, the company signed a $91 million agreement to acquire 3M's ballistic protection business and expects the deal to be completed during the first half of 2020, said Avon in its Nov. 13 financial report.
The company also completed first deliveries under the $246 million, 5-year M53A1 mask and powered air system contract with the U.S. Department of Defense.
First deliveries were also completed under another $93 million, 5-year M69 aircrew mask contract with DOD.
"In the last two years, we have built visibility and breadth within our contract portfolio, enabling us to deliver another record performance, and we enter the new year from a position of strength," McDonland said.
For 2020, the company has an opening order book of $53.1 million giving it good visibility and positioning it to continue the growth momentum.
As part of its strategy, Avon said it would maximize organic sales growth, pursue selective product development and target "value enhancing acquisitions" to complement its existing business.