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(Sharecast News) - Avon Technologies said on Wednesday that it has secured a further delivery order worth $20.3m from the US Defense Logistics Agency (DLA) under the second-generation Advanced Combat Helmet framework contract.
The order, which was secured by Avon's Team Wendy Ceradyne business, fulfils the maximum volume authorised for the current option year.
Chief executive Jos Sclater said: "This additional delivery order is another strong endorsement of Team Wendy's performance and reliability. Bringing the current option year to its maximum ordering volume demonstrates the confidence DLA has in our ability to manufacture and deliver ACH Gen II helmets to schedule.
"We remain focused on supporting the warfighter and delivering for our customer. This award helps cement our continued, long-term relationship with the customer on ACH in the coming years and reflects the progress Team Wendy has made in operational performance, execution and reliability."
Jefferies, which reiterated its buy rating on Avon, said: "This is supportive for next year's forecasts - we are not expecting any changes to consensus today - and for sentiment towards the group's equity story.
"Avon continues to build a healthy order book going into next year, which along with the operational improvement angle, is important for the shares to move higher."
At 0905 BST, the shares were down 0.3% at 1,794.00p.
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