Avon Rubber — Multi-year mask system agreement for NATO

Avon Protection (AVON)

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Avon Rubber — Multi-year mask system agreement for NATO

Avon has announced a 10-year framework contract award from the NATO Support & Programme Agency (NSPA) for FM50 mask systems. It is a further encouraging development for Avon Protection, which will form the core of the group when the dairy disposal completes. The order secures long-term supply to NATO forces for the first time and supports the anticipated Military mask systems order intake from the Rest of the World. Avon currently trades on an FY21e P/E of 27.3x.

Andy Chambers

Written by

Andy Chambers

Director, Industrials

Avon Rubber

Multi-year mask system agreement for NATO

NATO contract award

Aerospace & defence

19 August 2020



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Business description

Avon Rubber designs, develops and manufactures products in the protection (77% of H120 sales) and dairy (23%) sectors. Its major contracts are with national security organisations such as the US DOD. Over 75% of H120 sales were from the US.


Andy Chambers

+44 (0)20 3077 5700

Avon Rubber is a research client of Edison Investment Research Limited

Avon has announced a 10-year framework contract award from the NATO Support & Programme Agency (NSPA) for FM50 mask systems. It is a further encouraging development for Avon Protection, which will form the core of the group when the dairy disposal completes. The order secures long-term supply to NATO forces for the first time and supports the anticipated Military mask systems order intake from the Rest of the World. Avon currently trades on an FY21e P/E of 27.3x.

Year end

Revenue (£m)


































Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Avon Rubber has this morning announced a 10-year sole source framework contract to supply the NATO Support & Programme Agency (NSPA) with the FM50 mask system, powered and supplied air systems together with the associated filters, spares and accessories. The FM50 full face mask system provides the latest protection to NATO forces to counter the multiple CBRN threats that may be encountered. The first delivery order under the framework contract is expected shortly and should commence deliveries in FY21. The contract award was in management’s guidance assumptions so there is no change to our estimates.

While no value has been attached, the contract should provide one of the foundations for the company’s indicated Rest of the World annual order intake guidance of between £25m and £35m. It is also significant as it secures mask supply for NATO forces for an extended period for the first time. Avon already has similar framework agreements in place for the US and UK military, and the award provides a contract vehicle for NATO countries and affiliated nations to access and procure Avon Protection’s respiratory protection portfolio.

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