Avon Rubber


£987.2m market cap

3182p last close

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.

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. Avon Protection is now the sole focus. The enhancing purchases in the United States of the Helmets & Armor division and Team Wendy helmet systems extended the product portfolio and deepened customer engagement. Q121 revenues grew in Military (+16%) and First Responders (+19%) while Team Wendy added $20m. Order intake remained strong and net debt ended the period at $13m. Management expects to meet FY21 analyst consensus expectations and we trimmed our EPS by 4% to reflect that while maintaining 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 51.8 152.5
2020A 213.6 49.0 36.0 96.2 45.7 N/A
2021E 284.9 66.3 48.1 125.6 35.0 37.3
2022E 362.0 88.2 69.4 181.1 24.3 16.2
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 05/05/2021
Register to receive research on Avon Rubber as it is published
Share price graph
Balance sheet
Forecast net cash (US$m) 11.4
Forecast gearing ratio (%) N/A
Price performance
Actual (4.0) 1.0 23.3
Relative* (7.9) (6.6) (0.8)
52-week high/low 4625.0p/2615.0p
*% relative to local index
Key management
David Evans Chairman
Paul McDonald CEO
Nick Keveth CFO

Content on Avon Rubber