The Avon Protection Board is recommending a final dividend of 30.6 cents per share (2021: 30.6 cents) which together with the 14.3 cents per share interim dividend, gives a total dividend of 44.9 cents (2021: 44.9 cents), consistent with last year. The final dividend will be paid in pounds sterling on 10 March 2023 to shareholders on the register at 10 February 2023 with an ex-dividend date of 9 February 2023. The final dividend will be converted into pounds sterling for payment at the prevailing exchange rate which will be announced prior to payment.
The recommended dividend results in an adjusted cover ratio of 0.5 times (2021: 1.3 times). On a statutory continuing basis, the ratio was a deficit of 0.4 times (2021: deficit of 1.8 times). In recommending this year's final dividend, the Board has taken into account its expectations that the adjusted cover ratio will improve in the 2023 financial period.
Their policy is to grow dividends in line with adjusted earnings growth. Given the decline in earnings over the last two years.
Other financial highlights include:
Solid order intake of $280.1 million reflecting:
o First order of $42.1m from the U.S. Army for the Next-Generation Integrated Head Protection System (NG IHPS) helmet.
o Strong underlying demand environment with NSPA contract facilitating delivery of our life-critical personal protection to NATO countries.
Notable growth in UK & International market revenue (+84.2%, +88.9% on an organic constant currency basis) and Commercial Americas (+4.6%), offsetting decline in U.S. DOD (-21.2%).
Adjusted EBITDA margin of 9.4% (2021: 15.1%), reflecting a combination of product mix shift and operational challenges, including supply chain issues, with H2 margin of 12.9% following improvement in product mix and manufacturing efficiencies.
o Adjusted EBITDA margin excluding armor of 14.7% (2021: 19.0%).
Cash conversion of 142.7% reflecting tight control over working capital.
Net debt excluding lease liabilities of $44.2 million and leverage of 1.99 times bank adjusted EBITDA.
