Avon Protection


Market Cap£569m

Last Close 1834p

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 renamed Avon Protection reflects the increased focus of the group. The strategy focuses on organically growing the core, supported by selective product development and value-enhancing M&A. 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%. H221 has seen DOD infill order deferrals and supply chain disruption and management has cut FY21 and FY22 revenue guidance to $245–260m and $320–340m respectively, reducing adjusted EBITDA margins to 17–18% this year. We have lowered our estimates accordingly.

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 29.8 87.6
2020A 213.6 52.3 36.0 96.2 26.3 N/A
2021E 248.0 43.5 25.6 66.7 37.9 227.4
2022E 328.9 71.5 46.8 122.2 20.7 9.1
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 22/09/2021
Content on Avon Protection
Avon Rubber – Protection is the name of the game
Industrials | Update | 27 May 2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 28.7
Forecast gearing ratio (%) 12
Price performance
Actual (3.5) (32.0) (56.6)
Relative* (3.5) (32.6) (65.5)
52-week high/low 4625.0p/1763.0p
*% relative to local index
Key management
David Evans Chairman
Paul McDonald CEO
Nick Keveth CFO