Avon Protection


Market Cap£336m

Last Close 1083p

Avon Protection designs, develops and manufactures personal protection products for Military and First Responder markets. Its main customers are national security agencies such as the US DOD and c 90% of sales are from the United States.

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Investment summary

The reaction to the latest product approval delays and the strategic review in the body armour business appears to more than discount the likely financial impact and does not reflect solid progress in the core of the group involved in respirators and helmets. While the full ramifications of the delays and the strategic review are yet to be quantified by management, we assume a $40m reduction in FY22e revenue, affecting our FY22e EPS by 19%. We anticipate a strong recovery in FY23 EPS due to loss elimination and growth in the core respiratory and helmets activities.

Y/E Sep
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 162.0 36.2 28.3 84.9 17.3 50.8
2020A 213.6 52.3 36.0 96.2 15.2 N/A
2021E 248.0 43.5 25.6 66.7 22.0 89.7
2022E 288.6 59.4 38.1 99.4 14.7 7.2
Industry outlook

Avon’s long-standing, multi-level relationship with the US DoD is important to the group and the end market backdrop is supportive. The focus on higher-price sophisticated mask systems is proving successful, with M50 mask system replenishment and the addition of helmets and body armour provides further opportunities. We believe that Avon has the market position, product portfolio and strategic ambition to continue its growth through organic and inorganic means.

Last updated on 01/12/2021
Content on Avon Protection
Avon Protection – Confirming the growth path
Industrials | Flash note | 13 October 2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 27
Forecast gearing ratio (%) 12
Price performance
Actual (44.2) (41.1) (76.6)
Relative* (43.2) (40.5) (79.3)
52-week high/low 4220.0p/928.0p
*% relative to local index
Key management
David Evans Chairman
Paul McDonald CEO
Nick Keveth CFO
Rachel Stevens Director of IR