Avon Protection inks £38m contract with UK MoD

(Sharecast News) - Avon Protection announced a contract with the UK Ministry of Defence (MoD) on Thursday, for the provision of General Service Respirators (GSR) and associated in-service support. The London-listed company said the contract, valued at up to £38m, extended its longstanding partnership with the MoD in supplying Chemical, Biological, Radiological and Nuclear (CBRN) respirators.

It said the GSR masks, to be manufactured at Avon's Melksham facility, would be supplied to all branches of the UK Armed Forces.

The contract would span an initial four years, with the potential for five additional 12-month option periods.

"We are very proud to have won this competitive tender with the UK MoD and to continue supporting the UK's objectives of providing the highest quality, most reliable and trusted protection equipment for the UK's service men and women," said chief executive officer Jos Sclater.

"As we have seen with the reported deployment of chemical agents in Ukraine and in other recent conflicts, the highest grade CBRN protection is critical to operational capability for warfighters in the evolving reality of near-peer, hybrid warfare."

Sclater said the award was "strategically important" for the company.

"It demonstrates our continued technological leadership in CBRN respiratory protection and provides a strong foundation for our UK business over the medium and long term.

"We look forward to continuing to provide the UK with a world-leading sovereign capability in CBRN protection from our facility in Melksham and developing new technologies which will provide unparalleled protection for those who defend our nation."

At 1232 BST, shares in Avon Protection were up 3.57% at 1,278p.

Reporting by Josh White for Sharecast.com.