Avon Protection (AVON)

Last close As at 13/04/2024

1,137.00

22.00 (1.97%)

Market capitalisation

344m

Avon Protection designs, develops and manufactures products in the protection (70% of 2018 sales) and dairy (30%) sectors. Its major contracts are with national security organisations such as the US DoD. Over 70% of 2018 sales are from the US.

Latest Insights

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Industrials | QuickView

Avon Protection — Unmasking its growth potential

Industrials | Outlook

Avon Protection — Refocused Protection set to resume growth

Industrials | Update

Avon Protection — Sentiment needs restoring to access value

Industrials | Flash note

Avon Protection — Confirming the growth path

Sector

Industrials

Balance Sheet

Forecast net debt (US$m)

27.1

Forecast gearing ratio (%)

13

Share Price Performance

Financials

Avon Protection’s capital markets day highlighted its continued focus on medium-term margin expansion (targeting operating margin of 14–16%), concentrating on its core business of respirators and head protection. The unwinding of the armour business, alongside the consolidation of Team Wendy (acquired in H220) should enable Avon to benefit from rising global defence spending. Its strong relationship with the US DoD, and organic growth opportunities with recurring revenue from necessary product replacements, should bolster its medium-term target for ROIC to exceed 17%, which would surpass the average of UK defence peers.

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