Avon Rubber


Market Cap£795.4m

Last Close 2564p

Avon Rubber 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 is delivering on its growth strategy focused on organically growing its core, supported by selective product development and value-enhancing M&A. It is renaming to Avon Protection in H221, now the sole focus. The US acquisitions in 2020 extended the product portfolio and deepened customer engagement. Despite lockdowns, adverse FX and ballistic protection contract delays, H121 revenues grew 41%. Military (+17%) and First Responder (+19%) were driven by respiratory products and Team Wendy added $20.5m. Order intake was strong and H121 net debt was just $13m. Management expects to meet FY21 analyst consensus and we maintain our estimates for FY21 and FY22.

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 41.9 123.4
2020A 213.6 52.3 36.0 96.2 37.0 N/A
2021E 284.9 63.2 48.1 125.6 28.3 32.2
2022E 362.0 88.2 69.4 181.1 19.7 13.0
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 23/07/2021
Content on Avon Rubber
Avon Rubber – Protection is the name of the game
Industrials | Update | 27 May 2021
Avon Rubber – Body Armor ramp up deferred to FY22
Industrials | Update | 17 December 2020
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Share price graph
Balance sheet
Forecast net debt (US$m) 2.5
Forecast gearing ratio (%) 1
Price performance
Actual (4.9) (26.8) (25.0)
Relative* (3.6) (27.3) (35.4)
52-week high/low 4625.0p/2424.0p
*% relative to local index
Key management
David Evans Chairman
Paul McDonald CEO
Nick Keveth CFO