Avon Technologies: Preliminary Results

AVON TECHNOLOGIES PLC

(“Avon Technologies” or the “Group”)

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2026

A STRONGER BUSINESS. A CLEAR PATH FORWARD.

Our proven system has delivered a better business

• Exceeded all medium-term revenue, margin, ROIC, cash and leverage targets one year ahead of plan.
• Completed the STAR transformation programme, improving operational and financial performance.
• Embedded a culture of continuous improvement with 90% of employees trained on the Strengthen System.

Continuous improvement delivering operational excellence

• Improved productivity, scrap, on-time delivery and operational execution across the Group.
• Stabilised manufacturing in Cleveland with a record 200,000 Team Wendy helmets produced in FY26, demonstrating delivery at scale for the US DoW.
• Completed the UK facility transformation, reducing the footprint by 37,600 square ft while supporting continued revenue growth.

Market-leading positions underpinning continued customer demand

Continued demand across established programmes:

• Delivered record filter volumes with a $14m US filter order and $13m Middle East order.
• Secured more than $45m of additional NATO Support and Procurement Agency respiratory orders.
• Won two ACH Gen II helmet orders worth $20.1m and $20.3m, and a $40m NG IHPS award.
• Signed a new up to seven-year Australian Defence Force contract for EXFIL helmets, extending Team Wendy's largest programme outside the US.

New wins broadening our customer and programme base:

• $19m of new EXFIL helmet orders from the US Air Force, including $10.5m post year-end, broadening Team Wendy’s US DoW customer base.
• Expanded adoption of MITR half mask and goggles with US and Canada Armed Forces wins.

Progressing targeted growth opportunities that can increase scale and value

• Successfully through to the down-select stage of the US CBRN suits programme, securing a contract to deliver 1,500 suit systems in FY27.
• Secured Team Wendy's first European military opportunity and expanded the international pipeline.
• Strengthened commercial and programme management capabilities to support future growth.

Building a platform for long-term compounding growth

• Launched a Group-wide leadership development framework to build future capability.
• Codified the Avon Business Improvement System to provide a repeatable approach to improving performance across the Group and future acquisitions.
• Identified complementary adjacencies within fragmented protection technology markets, with potential to materially extend the Group’s TAM5.
• Positioned Avon to create long-term shareholder value by selectively acquiring, improving and growing high protection technology businesses.

Jos Sclater, Chief Executive Officer, commented:

“FY26 was a significant year for Avon. We completed our STAR transformation programme, exceeded all our medium-term targets a year ahead of plan and continued to deliver for our customers. We strengthened relationships across our key markets, maintained a strong order book and delivered important operational improvements across the Group.

The progress we have made has fundamentally changed Avon. We have embedded a culture of continuous improvement, established our Business Improvement System and transformed Avon Protection and Team Wendy into stronger, more focused and increasingly cash-generative businesses.

Our new Improve. Grow. Compound. strategy sets out the next phase of our journey. We see significant opportunities ahead to build on our market positions, expand into adjacent protection markets and create long-term value. With a clear strategy, a talented team and a strong foundation in place, I am confident that Avon’s best is yet to come.”

For further enquiries, please contact:

Avon Technologies plc

Jos Sclater, Chief Executive Officer

Rich Cashin, Chief Financial Officer

Gabriella Colley, Corporate Affairs Director +44 7891 206 239

Sodali & Co

Pete Lambie avontechnologies@sodali.com

Tilly Abraham +44 7855 432 699

Analyst & investor webcast and retail investor presentation:

Jos Sclater, Chief Executive Officer, and Rich Cashin, Chief Financial Officer, will host a presentation for analysts and investors at 9.00am today at Peel Hunt, 100 Liverpool Street, EC2M 2AT. To attend in person please contact: avontechnologies@sodali.com avontechnologies@sodali.com.

The presentation will also be broadcast live at: https://brrmedia.news/AVON_FY_26

Notes:

1 The Directors believe that adjusted measures provide a useful comparison of business trends and performance. Adjusted results exclude adjusting items. The term adjusted is not defined under IFRS and may not be comparable with similarly titled measures used by other companies.

2Reported operating profit includes $5.5m amortisation of acquired intangibles and transformational costs of $7.4m. See Adjusted performance measures section for full breakdown of adjustments and comparatives.

3 Constant currency measures are provided in the adjusted performance measures section.

4 Free Cash Flow defined as net cash generated from operating activities, less net interest paid and capital expenditure.

5TAM defined as Total Addressable Market

About Avon Technologies plc:

Avon Technologies is a military and law enforcement protective equipment specialist. Our products are trusted to protect over 4 million service personnel and first responders in over 70 countries around the world.

Driven by a culture of continuous improvement, we empower every individual in our organisation to identify opportunities and implement meaningful change. This commitment fuels our innovation and ensures we’re constantly advancing our mission: to provide unparalleled protection for those who protect us.

We have a clear strategy to create value: Improve, Grow, Compound. Building on the transformation delivered since 2023, our Business Improvement System provides a repeatable approach to improve performance, generate cash and invest for growth:

• Improve productivity, cash generation and returns through Continuous Improvement;
• Grow by strengthening our market-leading core and recurring revenue streams, while investing in opportunities that can materially increase scale and value; and
• Compound value by selectively acquiring, improving and growing protection technology businesses and reinvesting at attractive returns.

Our business is structured around two Strategic Business Units:

• Avon Protection – a leading provider of advanced respiratory and integrated protective systems.

• Team Wendy – a specialist in high-performance ballistic and impact protection helmet systems.

For further information, please visit our website www.avon-technologiesplc.com

Legal Entity Identifier: 213800JM1AN62REBWA71

CEO REVIEW

FINANCIAL SUMMARY

The Group closed FY26 with order intake of $354m and a robust closing order book of $263m (FY25: $263m), providing good visibility into FY27 and beyond. Team Wendy's order book grew to $152m (FY25: $146m), including $69m of ACH Gen II and $63m of NG IHPS orders. Avon Protection closed the year with an order book of $111m (FY25: $117m), a strong result considering the Ukraine-related orders in FY25 and supported by continued strong demand across respiratory protection and filters.

The demand environment has changed meaningfully over the last few years. Governments are rebuilding military and civil readiness, replacing and upgrading ageing equipment and responding to increasingly complex threats. Customers require equipment that is available, proven, interoperable and capable of protecting users against enhanced threats without imposing unnecessary burden on mobility or mission performance.

These conditions favour established suppliers with qualified products, trusted relationships and the ability to deliver zero-failure equipment reliably at scale. They also support demand across replacement, sustainment and next-generation product development. Our selected markets remain attractive, with military and commercial helmet categories among the strongest growth areas.

Group revenue increased 12.7% to $353.7m (FY25: $313.9m), driven by strong demand across both business units, including record filter volumes in Avon Protection and higher production rates in Team Wendy.

Adjusted operating profit increased 51% to $60.7m (FY25: $40.3m), with Group operating margin growing strongly to 17.2% (FY25: 12.8%). The improvement reflects the benefits of the STAR transformation programme, stronger operational execution, productivity gains and operating leverage across both businesses. The improvement also includes IT savings and the effect of some beneficial one-offs including US tariff refunds. During the year, Team Wendy delivered record output levels while stabilising production and improving reliability, while Avon Protection continued to benefit from favourable mix and strong operational performance.

Adjusted basic EPS grew by 57.1% to 143.3c, reflecting the strong uplift in operating profit.
Cash conversion of 92.7% (FY25: 90.3%) contributed to further strengthening of the balance sheet. Leverage reduced to 0.43x (FY25: 0.86x, HY26: 0.90x) reflecting a fall in net debt excluding lease liabilities to $33.7m and higher profitability. Free cash flow, defined as net cash generated from operating activities, less net interest paid and capital expenditure, improved significantly to $30.9m (FY25: $12.6m). This reflected improved underlying profitability and a 50% reduction in transformational spend.

Return on invested capital increased further from 18.6% in FY25 to 27.6% in FY26, reflecting higher profitability and efficient utilisation of assets. The Group continues to generate returns comfortably above its medium-term targets, demonstrating the effectiveness of the STAR transformation and providing a strong foundation for the next phase of the strategy.

OPERATIONAL SUMMARY

Three years ago, STAR provided Avon with a clear framework for improving performance, strengthening our operations and creating long-term value. It brought focus, discipline and direction to the organisation and challenged us to transform how we work. FY26 marks the successful completion of our STAR transformation, having achieved all our 2027 targets a year early, and, as such, this strategic review will be the last that reflects on the business through that lens.

1. Strengthen through continuous improvement

Our Strengthen System is now firmly embedded across the Group, with 90% of employees trained and 20% certified in continuous improvement. It continues to drive measurable improvements in productivity, inventory efficiency and operational execution.

Since the launch of STAR in H1 2023, Group productivity has increased by 54%, scrap reduced by 54% and inventory turns increased by 14%. Improvement is evident across both businesses. Avon Protection has increased productivity by 49% since HY23 and improved inventory turns to 4.2x. At Team Wendy, productivity has improved by 106% since HY23 with record 2026 production of over 200,000 helmets, and scrap reduction initiatives delivered approximately $4m of annualised savings.

Progress continued in FY26, with productivity increasing by 10% and inventory turns improving by 7% to 3.19x. Scrap increased from 1.2% to 1.4% of revenue, primarily reflecting the significant production ramp-up at Team Wendy.

While overall inventory turns have improved, we have fallen short on internal targets in both businesses, with Team Wendy having the biggest delta to the target. Within Team Wendy we focused on achieving the production targets this year because it was critical to building credibility with the DoW and securing new orders. As we move into FY27, the focus shifts to improving inventory turns. In the main, this can be achieved by improving right-first-time quality and speeding up the time between lot completion and government approval of lots.

There remains significant opportunity to improve productivity, inventory turns, quality and cash generation further. With the Business Improvement System embedded across the Group, we have the capability to sustain continuous improvement as we move into the next phase of our strategy.

2. Transformation complete

Total investment into transformation initiatives was $7.4m, in line with market guidance and materially below FY25‘s $15.4m. As previously communicated, our transformation programmes are now complete. The transformation programme has delivered a lower cost base, greater capacity, more agility, stronger cash flow and a much stronger platform for growth:

3. Advance through maximising the core

Advance focused on strengthening our market-leading positions and expanding customer relationships. These actions continue to underpin our approach as we maximise the value of our core businesses by increasing value from our existing products and capabilities and growing our installed base.

Avon Protection

Orders and installed base: Order momentum remained strong throughout FY26. We secured more than $45m of additional NSPA orders in FY26, with the framework now supporting 16 NATO nations and more than $145m of orders for respirators, boots and gloves since the contract started. Every new system placed creates future demand for filters, spares and sustainment. We also delivered record filter volumes, supported by a $14m U.S. DoW order and a $13m order from a Middle Eastern customer, demonstrating the recurring value of our growing installed base. The last filter order from the US DoW was awarded to us sole source for the first time, demonstrating the credibility we have built with this customer for reliable delivery of a high-quality product.

CS-PAPR SD: During the year we launched our next-generation short-duration Self-Contained Breathing Apparatus and Powered Air system, broadening our offering across powered and self-contained respiratory protection. The system provides up to 20 minutes of breathing air in high-contaminant or oxygen-deficient environments. We have since secured the first contract award for 16 systems. This order is an important customer validation of a differentiated new capability.

Common Voice Projection Unit (CVPU): We also launched our new Voice Projection Unit during the year. The CVPU provides clear, intelligible voice amplification while wearing our respirators. We have sold more than 5,000 units, certification and manufacturing ramp-up are progressing, and the identified opportunity pipeline is more than $100m, although much of that remains longer dated.

MITR: We continued to broaden the MITR platform, launching new riot filters and goggles during the year and securing orders from the US and Canadian Armed Forces. This expands our position into additional respiratory missions and customers. It is likely that other militaries and first responders will follow their lead.

US law enforcement: Demand for respiratory protection and supporting equipment increased during the year, providing further opportunities across filters, accessories and sustainment.

Team Wendy

Core programmes and recurring demand: Team Wendy continued to strengthen its core US DoW programmes during FY26, securing a $40m NG IHPS award and two ACH Gen II orders of $20.1m and $20.3m, taking the current option year to its maximum ordering volume. Continued demand for helmet pads and liner systems from the US Army and Marine Corps provides recurring sustainment revenue. We also see further opportunity across both helmet programmes. IHPS is benefiting from requirements for greater survivability, mobility and blast protection, while our strong cost position in ACH creates further scope to improve margins.

In the North American law enforcement market, demand was soft in the first half as a result of the government shutdowns and delays in grant funding, but recovered towards the end of the financial year. We now see a much-increased pipeline compared to Q1 2026.

Expanding across US military services: We continued to broaden our position beyond core Army programmes, securing $19m of new EXFIL orders from the US Air Force and progressing EXFIL LTP adoption through US Naval Aviation. These wins increase Team Wendy's participation across US military services and create further opportunities for future programme expansion.

International expansion: We secured a new contract of up to seven years with the Australian Defence Force, with an initial order received, alongside Team Wendy's first European military order. These wins represent important steps in broadening the business beyond US DoW and establishing a stronger international military position.

4. Revolutionise: Focused investment in opportunities

Revolutionise focused on developing new products, entering adjacent markets and expanding our international presence. These actions continue to underpin our approach as we accelerate growth by concentrating resources behind the programmes and opportunities that can materially increase our scale.

These programmes are at different stages and we will not win everything. But each builds on areas where we already have strong technology, customer access and programme credibility.

Avon Protection

US suits: We continued to build our position in integrated CBRN protection, leveraging our respiratory leadership and established customer relationships. We were down-selected to phase three for the US NGIP programme and secured an initial order for 1,500 suits for user trials. This programme has significant long-term potential but the selection process remains competitive at this stage.

US rebreather: We are building on our proven MCM100 platform to pursue the next US rebreather programme. A successful programme win would expand our position and create a significant new growth platform, with longer-term sustainment and international opportunities.

NATO combination systems: We are developing integrated protection systems that combine Avon Protection's respiratory leadership with complementary CBRN capabilities. This builds on our established NATO customer relationships and installed base, broadening the range of mission-ready protection we can provide and increasing our addressable share of customer spend.

Next-generation US respiratory: We continue to work with customers to shape future US military respiratory requirements. This next-generation opportunity builds on our leadership in US military respiratory protection and existing installed base, with the potential to create a long-term equipment and filter opportunity and extend our position on future programmes.

Team Wendy

International expansion: We continued to build our international military position, leveraging our proven U.S. military products and programme credentials with allied defence customers. Our first European military contract provides an important entry point as we seek to build a broader international growth platform beyond US DoW. Team Wendy’s international revenue increased from $14.5m to $20.9m in FY26, a 44% increase. This provides early credibility for our strategy to grow our helmets business internationally.

North American commercial and federal: We continued to extend Team Wendy's military head protection expertise into adjacent markets, with a focus on increasing participation across under-served US states, extending our military head-protection expertise into adjacent first responder and federal customers. New products including RECON Tactical and EXFIL Endurance broaden our addressable portfolio and support our ambition to build a larger, more diversified commercial revenue stream.

Future US DoW programmes: We continued to invest in the next generation of military head protection, which includes increased ballistic threat protection, improved blast mitigation technologies and broader system integration. We are working closely with the US Marine Corps, US Special Operations Command and the US Army’s Natick R&D to help shape future requirements and position Team Wendy for the next generation of US military programmes.

RISKS AND OPPORTUNITIES

Risks

Sustaining Team Wendy production performance: Following the significant increase in production during FY26, the focus is now on sustaining these higher production levels while improving right-first-time quality. We are increasing automated inspection, strengthening process controls and applying more rigorous root-cause analysis to deliver consistently to the customer’s exacting standards.

US political backdrop impacting short-term demand: Following the US mid-term elections it is possible that political stalemate could slow new contract awards and lot acceptance in the short term, but in the medium term we note that defence spending is correlated to the global threat environment rather than party politics.

Opportunities

New programmes and international growth: We are pursuing a number of significant US and international step-change programmes that are not fully reflected in our forecasts due to uncertainty around timing and probability. These include opportunities across next-generation respiratory and head protection programmes and international customers, providing potential upside as programmes progress and awards are made.

Team Wendy order to cash cycle: We also have an opportunity to decrease the order to cash cycle by shortening the time between receiving an order and getting it approved for government shipping, improving inventory turns and cash.

SUMMARY – STAR DELIVERED. A STRONGER BUSINESS WITH A CLEAR PATH FORWARD

STAR has delivered. We have completed the transformation, exceeded our original medium-term targets ahead of plan and built a stronger, more efficient and increasingly cash-generative business. The improvement is evident in our financial performance and in the stronger operational foundations established across Avon Protection and Team Wendy.

Importantly, STAR has also established an enduring platform for the future: a proven Business Improvement System, stronger market positions and the capability to continue improving the businesses we own. We enter FY27 with strong momentum and a clear path forward.

OUTLOOK

The long-term fundamentals of our markets remain attractive, supported by increasing global defence spending, modernisation requirements and growing demand for advanced protection. Across Avon Protection and Team Wendy, our market-leading positions, trusted customer relationships and strong order book provide a solid foundation for continued organic growth.

Our new strategy, Improve. Grow. Compound, sets out how we intend to build from that position. We will Improve productivity, cash generation and returns through continuous improvement; Grow by maximising our market-leading core and recurring revenue streams, while investing in opportunities that can materially increase scale and value; and Compound value over the longer term through disciplined capital allocation and selectively acquiring and improving protection technology businesses.

Our strong cash generation and balance sheet provide the capacity to invest into these opportunities while maintaining financial discipline. With significant opportunities across our existing portfolio and a clear pathway towards our ambition of more than $600m of revenue within five years, we look to the future with confidence.

FY2027 FINANCIAL GUIDANCE

We enter FY27 with strong momentum, having completed our STAR transformation and set out the next phase of our strategy: Improve. Grow. Compound. Our Business Improvement System provides a framework for continuous improvement across the Group, while our strong order book, excellent market positions and attractive end markets support confidence in our medium-term growth ambitions.

We remain focused on maximising the value of our core businesses, accelerating growth through innovation and market expansion, and deploying capital selectively to compound value over the long term.

In 2027 we therefore expect the Group to deliver:

• Mid-single-digit revenue growth
• Adjusted operating profit margin within our target 16-18% range
• Free cash flow of approximately $50-60m

These expectations are in line with the medium-term targets outlined at our capital markets event in October 2026 of more than 5% annual revenue growth, adjusted operating profit margins of 16-18%, adjusted EPS growth of more than 10% per annum and >$175m of cumulative free cash flow generated over the next three years.

FINANCIAL REVIEW

The Group delivered another year of excellent financial progress, with strong top-line growth and operational improvements dropping through to significant growth in profitability. Revenue increased by 12.7% to $353.7m (FY25: $313.9m), while adjusted operating profit increased by 50.6% to $60.7m (FY25: $40.3m), resulting in an adjusted operating profit margin of 17.2% (FY25: 12.8%). Orders received were $353.6m (FY25: $351.5m), with the closing order book broadly unchanged at $262.7m (FY25: $262.8m). Free cash flow increased to $30.9m (FY25: $12.6m), supporting a reduction in net debt excluding lease liabilities to $33.7m (FY25: $50.1m).

1 The Directors believe that adjusted measures provide a useful comparison of business trends and performance. Adjusted results exclude adjusting items. The term ‘adjusted’ is not defined under IFRS and may not be comparable with similarly titled measures used by other companies.

2 Reported operating profit includes $5.5m amortisation of acquired intangibles and transformational costs of $7.4m. See the Adjusted Performance Measures section for a full breakdown of adjustments and comparatives.

3 Constant currency measures are provided in the Adjusted Performance Measures section.

Order intake for the Group of $353.6m (FY25: $351.5m) was up 0.6% (0.2% constant currency). Team Wendy order intake of $169.5m was up 23.1%, including significant US DoW NG IHPS, ACH Gen II and EXFIL orders during the second half of the year giving visibility through FY27 and into FY28. Avon Protection order intake remained healthy at $184.1m (FY25: $213.8m) with continued demand for respiratory protection across our key markets and customers. The comparative FY25 intake for Avon Protection benefited from system orders related to Ukraine, which have now transitioned into our installed base, providing further recurring revenues.

The closing order book of $262.7m was in line with the prior year (FY25: $262.8m). The Avon Protection closing order book of $110.8m reflects ongoing demand across the product range, including core respiratory protection, boots and gloves, rebreathers and thermal imaging cameras. Team Wendy closed the year with $151.9m in the order book, an increase of 4.2% reflecting the previously mentioned DoW orders.

Revenue for the Group totalled $353.7m, an increase of 12.7% (12.1% constant currency) compared to the prior year of $313.9m. Avon Protection revenue totalled $190.3m, an increase of 12.7% compared to $168.8m in 2025. Strong sales growth of 81.2% for US Commercial revenues drove the step up in performance, which benefited from strong demand for masks and accessories, supported by similar year over year sales to DoW and UK & International customers.

Team Wendy revenue totalled $163.4m, an increase of 12.6% over the prior year of $145.1m. US DoW revenue grew by 14.6% due to an increase in ACH Gen II and NG IHPS deliveries, reflecting production volumes at target levels in the second half of the year. UK & International revenue increased by 44.1%, reflecting progress in expanding our international military presence, alongside favourable timing of demand from larger existing customers. US Commercial sales declined by 5.8%, reflecting the impact of the Department of Homeland Security (DHS) shutdown in H1. Demand has recovered in recent months as released DHS funding flows through to customers.

Adjusted operating profit was $60.7m (FY25: $40.3m). The production ramp-up at Team Wendy enabled significantly higher volumes alongside improved productivity and efficiency, while revenue growth in Avon Protection delivered a further boost to profit. The business also benefited from savings delivered by IT transformation projects completed during the year, strong underlying cost control across the Group and certain one-off benefits, including US tariff refunds and tax incentives, partially offset by investment in additional sales capability. This resulted in an adjusted operating profit margin of 17.2% (FY25: 12.8%), up 440bps to a level comfortably above our previous 14-16% mid-term target.

Statutory operating profit of $47.8m (FY25: $19.2m) reflected adjusting items in the year which are summarised below.

The Adjusted Performance Measures section contains a full breakdown and explanation of adjustments.

Adjusted net finance costs decreased marginally to $5.3m (FY25: $5.4m). After an adjusted tax charge of $13.4m (2025: $8.0m), the Group recorded an adjusted profit for the year after tax of $42.0m (FY25: $26.9m).

Adjusted basic earnings per share increased to 143.3c (FY25: 91.2c) and return on invested capital increased to 27.6% (2025: 18.6%), both reflecting the growth in operating profit.

Statutory net finance costs of $5.8m (FY25: $6.1m) include $0.5m (FY25: $0.7m) net interest expense on the UK defined benefit pension scheme liability.

Statutory profit before tax was $42.0m (FY25: $13.1m) and, after a tax charge of $10.2m (FY25: $2.8m), the profit for the year was $31.8m (FY25: $10.3m).

Transformation costs

1 Including $0.7m for acceleration of amortisation related to legacy Enterprise Resource Planning systems (FY25: $2.6m), and, in the prior year $1.3m acceleration of depreciation and amortisation for assets that were held in Irvine.

Footprint optimisation and operational excellence spend related to Team Wendy. This included successful completion of the project to remove SAP delivering annualised savings of over $1m per year, transformation in Cleveland enabling the further ramp-up and stabilisation of DoW contract volumes alongside some final legacy charges specifically related to historical Irvine operations. Functional excellence activity related to optimisation of IT, with the project to transform this function and deliver cost-effective business-facing support now complete. This project is delivering annualised savings of over $3m per year, providing a payback on the initial investment within the first year, with a target to increase this further over time to $6m per annum.

Investment in transformation initiatives has been in line with expectations and guidance set out with the HY26 results. There was no transformational capital expenditure in the year. The previously identified transformation initiatives, classified as adjusting, are now complete.

Segmental performance

Avon Protection delivered a 27.4% increase in operating profit to $42.8m (FY25: $33.6m), with profit margin increasing by 260bps to 22.5% (FY25: 19.9%). Margins benefited from the operational gearing effect of the increase in revenue, a favourable mix towards our higher specification products, initial benefits of the IT functional excellence project and some beneficial one-offs, including refund of US tariffs.

Team Wendy margins increased by 640bps to 11.0% (FY25: 4.6%). As per Avon Protection, margin growth benefited from operational gearing and IT functional savings, alongside higher production levels from the optimised footprint.

Research and development expenditure

Total investment in research and development (capitalised and expensed) rose slightly to $13.8m (FY25: $13.5m).

Avon Protection expenditure primarily focused on completing the development of the MITR goggle, whilst Team Wendy expenditure related to RECON helmet development.

Net debt and cash flow

Cash flows from operations before adjusting items were $65.7m (FY25: $46.5m) with the increase principally due to higher profitability. Free cash flow improved significantly to $30.9m (FY25: $12.6m), benefiting from the $6.3m reduction in transformational costs paid.

The purchase of own shares to satisfy future exercises of options granted to employees under the Long-Term Incentive Plan was $5.4m (FY25: $9.1m), hedging potential cash costs of share price movements.

Net debt was $50.3m (FY25: $68.0m), which includes lease liabilities of $16.6m (FY25: $17.9m). Excluding lease liabilities, net debt was $33.7m (FY25: $50.1m).

Defined benefit pension scheme

The Group operated a contributory defined benefits plan to provide pension and death benefits for the employees of Avon Technologies plc and its Group undertakings in the UK employed prior to 31 January 2003. The plan was closed to future accrual of benefit on 1 October 2009 and has a weighted average maturity of approximately nine years. An updated deficit recovery plan was agreed with Trustees in the second half of the year following completion of the 31 March 2025 actuarial valuation.

The net pension liability for the scheme decreased to $9.6m at 30 September 2026 (FY25: $13.8m), principally reflecting deficit contributions of $10.6m, including a one-off payment of $4.0m under the latest valuation, partially offset by an adverse actuarial experience adjustment. The one-off valuation payment was used to further increase the scheme’s hedging position against inflation and interest rate risk, taking advantage of favourable market conditions, while also enabling a reduction in future contributions compared with the previous recovery plan.

Under the valuation, the Group will pay deficit contributions of £2.6m between 1 October 2026 and 31 March 2027. From 1 April 2027 funding is £4.0m p.a., increasing by 3% each year, until 31 March 2031. These contributions, along with investment returns from return-seeking assets, are expected to make good the actuarial funding shortfall by 31 March 2031.

Foreign exchange risk management

The Group is exposed to translational foreign exchange risk arising when the results of sterling denominated companies are consolidated into the Group’s presentational currency, US dollars. The Group’s policy is not to hedge translational foreign exchange risk. Due to the translational effect, a 1 cent increase in the value of the US dollar against sterling would have decreased revenue by approximately $0.3m and increased operating profit by approximately $0.3m for FY26.

Financing and interest rate risk management

The Group has a $137m revolving credit facility (RCF), together with a $50m accordion. The RCF is held with a syndicate of four lenders and is available until May 2029.

RCF borrowings are floating rate priced using the US Secured Overnight Financing Rate (SOFR). Given the modest level of outstanding borrowings, the Group’s interest rate exposure is currently unhedged. This position is kept under regular review.

Dividends

The Board has proposed a final dividend of 18.7 cents per share (FY25: 17.0c). The final dividend will be paid in pounds sterling on 26 February 2027 to shareholders on the register at 5 February 2027. The final dividend will be converted into pounds sterling for payment at the prevailing exchange rate, which will be announced prior to payment.

Forward-looking statements

Certain statements in this report are forward‐looking. Although the Group believes that the expectations reflected in these forward‐looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward‐looking statements.

We undertake no obligation to update any forward‐looking statements whether because of new information, future events or otherwise.

Company website

The full annual report will be made available on 2 December 2026 on the Company's website www.avon-technologiesplc.com. The maintenance and integrity of the website is the responsibility of the Directors. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Performance measurement

The Directors assess the operating performance of the Group based on both statutory and adjusted measures. Adjusted measures include operating profit, net finance costs, taxation and earnings per share, as well as other measures not defined under IFRS including orders received, closing order book, operating profit margin, return on invested capital, cash conversion, net debt excluding lease liabilities, free cash flow, average working capital turns, scrap levels, average inventory turns, productivity and constant currency equivalents for relevant metrics. These measures are collectively described as Adjusted Performance Measures (APMs).

The Directors believe that the APMs provide a useful comparison of business trends and performance. The APMs exclude adjusting items considered unrelated to the underlying trading performance of the Group. The term adjusted is not defined under IFRS and may not be comparable with similarly titled measures used by other companies. The Directors do not consider APMs to be more relevant or reliable than IFRS measures.

Adjusted Performance Measures

The following table summarises the statutory and adjusted profit and loss account measures for the year together with the adjustments made to each line item.

1 Adjustments to operating profit

Adjusted operating profit excludes adjusting items considered unrelated to the underlying trading performance of the Group. Transactions are classified as adjusting where they relate to an event that falls outside of the underlying trading activities of the business and where individually, or in aggregate, the Directors consider they have a material impact on the financial statements.

Amortisation of acquired intangibles

Amortisation charges for acquired intangible assets of $5.5m (2025: $5.7m) are excluded from adjusted measures as they do not change each period based on underlying business trading and performance.

Transformation, restructuring and transition costs

Transformation costs excluding depreciation and amortisation charges were $6.7m (2025: $11.5m). These included $3.0m related to footprint optimisation and operational excellence, and $3.7m related to functional excellence.

Transformation costs directly relate to transformation initiatives. Spend includes attributable costs related to headcount, line testing, redundancies, site closure, external support and other items.

Transformational accelerated depreciation and amortisation charges were $0.7m (FY25: $3.9m). These include $0.7m related to removal of the Group’s legacy SAP ERP system (FY25: $2.6m), and, in the prior year $1.3m for assets held in Irvine that will not be used following operational closure.

These costs are considered adjusting items as they relate to specific activities which do not form part of the underlying business trading and performance.

2 Adjustments to net finance costs

Adjusted net finance costs exclude adjusting items considered unrelated to the underlying trading performance of the Group.

$0.5m (2025: $0.7m) unwind of discounting on the UK defined benefit pension scheme liability is excluded from adjusted measures given the scheme relates to employees employed prior to 31 January 2003 and was closed to future accrual of benefits on 1 October 2009.

3 Adjustments to taxation

Adjustments to taxation represent the tax effects of the adjustments to operating profit and net finance costs. The adjusting items do not have significantly different effective tax rates compared to statutory rates, with an overall effective rate of 24% (2025: 24%).

4 Adjustments to profit

5 Adjusted earnings per share

6 Net debt

7 Adjusted dividend cover ratio

8 Return on invested capital

Return on invested capital (ROIC) is calculated as adjusted operating profit over average invested capital.

9 Average working capital turns (AWCT)

AWCT is calculated by dividing revenue by the 12-month average month-end working capital (defined as the total of inventory, receivables and payables excluding lease liabilities).

10 Cash conversion

Cash conversion excludes the impact of adjusting items from operating cash flows and EBITDA.

11 Free cash flow

Free cash flow (FCF) is defined as net cash generated from operating activities, less net interest paid and capital expenditure.

12 Constant currency reporting

Constant currency measures are calculated by translating the prior period at current period exchange rates.

13 Scrap (% of revenue)

Scrap (% of revenue) is calculated by dividing the total value of scrap produced in the period by the revenue generated for the period.

Our mid-term targets are calculated by dividing the total value of scrap produced in the year by the revenue generated for the 12-month period.

14 Inventory turns

Inventory turns measure how many times the inventory was turned over in the period by dividing adjusted cost of sales over the last 12 months by the relevant inventory value. Average inventory turns use the 12-month average month end inventory value.

Prior year adjusted cost of sales excludes $1.1m acceleration of depreciation charges related to assets held in Irvine.

15 Productivity

Productivity measures how much revenue was generated per direct employee by dividing the revenue over the last 12 months by the relevant number of direct heads. Direct heads are employees undertaking manufacturing activities.

Consolidated Statement of Comprehensive Income

For the year ended 30 September 2026

Consolidated Balance Sheet

At 30 September 2026

Consolidated Cash Flow Statement

For the year ended 30 September 2026

1 Purchases of property, plant and equipment for FY26 have been presented net of grant funding, comprising $1.0m received in cash less $0.5m outstanding at year end (2025: presented gross of $1.0m outstanding at the prior year end).

Consolidated Statement of Changes in Equity

For the year ended 30 September 2026

Other reserves consist of the capital redemption reserve of $0.6m (2025: $0.6m) and the translation reserve of $(17.0)m (2025: $(15.8)m).

All movements in other reserves relate to the translation reserve.

Notes to the financials

1 Basis of preparation

Avon Technologies plc is a public limited company incorporated and domiciled in England and Wales and its ordinary shares are traded on the London Stock Exchange.

The financial period presents the year ended 30 September 2026 (prior financial period: year ended 30 September 2025).

The financial statements have been prepared in accordance with UK adopted International Accounting Standards. The financial statements have been prepared under the historical cost convention except for certain items held at fair value.

The financial information set out above does not constitute the company's statutory accounts for the years ended 30 September 2026 or 2025. The financial information for 2025 is derived from the statutory accounts for 2025 which have been delivered to the registrar of companies. The auditor has reported on the 2026 accounts; their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. The statutory accounts for 2026 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the registrar of companies in due course.

2 Operating segments

The Group Executive Committee is responsible for allocating resources and assessing performance of the operating segments. Operating segments are therefore reported in a manner consistent with the internal reporting provided to the Group Executive Committee. The Group has two different operating and reportable segments: Avon Protection and Team Wendy.

1 Refer to adjusted performance measures section for a full breakdown of adjusted measures.

Revenue by line of business

3.1 Intangible assets

Impairment review of goodwill

Goodwill is tested for impairment annually and whenever there is an indication of impairment at the level of the CGU to which it is allocated.

The total carrying value of each CGU is tested for impairment against corresponding recoverable amounts. CGU carrying values include associated goodwill, other intangible assets, property, plant and equipment, and attributable working capital.

Goodwill has been allocated to Team Wendy and Avon Protection CGUs. Team Wendy includes goodwill from the Ceradyne and Team Wendy acquisitions. Avon Protection goodwill is related to three legacy acquisitions that completed prior to 2017.

The recoverable amount of the CGUs has been determined based on value in use calculations, using discounted cash flow projections for a five-year period plus a terminal value based upon a long-term perpetuity growth rate of 2.5% (2025: 2.5%).

The 2026 impairment review demonstrated the recoverable amount of the Team Wendy and Avon Protection CGUs was higher than the carrying amount of associated CGU net assets. Sensitivity analysis has been performed which shows there are no reasonable changes in assumptions that would result in an impairment to goodwill and other net assets associated with each CGU.

3.2 Property, plant and equipment

$5.0m (2025: $5.7m) of expenditure included in the carrying value of plant and machinery relates to assets under construction.

2026 additions are shown net of $0.5m grant funding (2025: net of $1.0m grant funding). This was outstanding for payment at each year end. The 2025 amount was paid during the year.

4.1 Cash flows from operations

4.2 Borrowings

Bank loans comprise drawings under the revolving credit facility (RCF).

The Group had the following committed facilities at the balance sheet date:

On 14 May 2024 the Group signed a $137m RCF, together with a $50m accordion. The RCF was agreed with a syndicate of four lenders and is available until May 2029, having been extended during the year.

The RCF is subject to financial covenants measured on a biannual basis. These include a limit of 3.0 times for the ratio of net debt, excluding lease liabilities, to bank-defined adjusted EBITDA (leverage). The Group was in compliance with all financial covenants during the current and prior years.

The RCF is drawn in short- to medium-term tranches of debt which are repayable within 12 months of drawdown. These tranches of debt can be rolled over provided certain conditions are met, including covenant compliance. The Group considers that it is highly unlikely it would be unable to exercise its right to roll over the debt based on forecast covenant compliance. Even in a severe downside scenario, there are mitigating actions within the control of the Group that could be taken to maintain compliance with these conditions, including future covenant requirements. The Directors therefore believe that the Group has the ability and the intent to roll over the drawn RCF amounts when due and consequently has presented the RCF as a non-current liability.

4.3 Net finance costs

4.4 Analysis of net cash/(debt)

4.5 Own shares held – Long-Term Incentive Plan

These shares are held in trust in respect of awards made under the Group’s Long-Term Incentive Plan. Dividends on the shares have been waived. The market value of shares held in trust at 30 September 2026 was $25.3m (30 September 2025: $27.0m). The shares are held at cost as treasury shares and deducted from shareholders’ equity.

During 2026 the trust acquired 226,419 (2025: 494,650) shares at a cost of $5.4m (2025: $9.1m).

Own shares held – Share Buyback Programme

In 2022 the Group completed a £9.25m ($12.4m) Share Buyback Programme, purchasing 765,098 ordinary shares. Dividends on these shares have been waived. Purchased shares under the programme are held at cost as treasury shares and deducted from shareholders’ equity.

4.6 Dividends

On 30 January 2026, the shareholders approved a final dividend of 17.0c per qualifying ordinary share in respect of the year ended 30 September 2025. This was paid on 6 March 2026 utilising $4.9m of shareholders’ funds.

The Board of Directors declared an interim dividend of 8.1c (2025: 7.6c) per qualifying ordinary share in respect of the year ended 30 September 2026. This was paid on 4 September 2026 utilising $2.4m (2025: $2.3m) of shareholders’ funds.

The Board is recommending a final dividend of 18.7c per share (2025: 17.0c) which together with the 8.1c interim dividend gives a total dividend of 26.8c (2025: 24.6c). The final dividend will be paid on 26 February 2027 to shareholders on the register at 5 February 2027 with an ex-dividend date of 4 February 2027.

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