Avon Protection


Market Cap£356.8m

Last Close 1150p

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

Avon Protection has a strategy to grow the core organically, supported by selective product development and value-enhancing M&A. The US acquisitions in 2020 extended the product portfolio into helmets and body armour and deepened customer engagement. The company has met its guidance for FY21 with revenues of $250m and cash conversion over 80%. However, a further body armour product failure in testing has deferred some FY22 revenue and the anticipated margin recovery and led to a strategic review of the body armour activity. The outcome of the review along with FY21 results should now be announced in December. In advance of further guidance from the company we have adjusted FY22 numbers to exclude body armour.

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 18.0 53.0
2020A 213.6 52.3 36.0 96.2 15.9 N/A
2021E 248.0 43.5 25.6 66.7 22.9 93.6
2022E 288.6 59.4 38.1 99.4 15.4 7.6
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 provides further opportunities. We believe that Avon has the market position, product portfolio and strategic ambition to continue its growth.

Last updated on 18/01/2022
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 2.2 (43.2) (66.8)
Relative* (1.0) (45.3) (70.4)
52-week high/low 3582.0p/916.0p
*% relative to local index
Key management
David Evans Chairman
Paul McDonald CEO
Nick Keveth CFO
Rachel Stevens Director of IR