Edison Investment Research - Avon Rubber PLC (AVON) Avon Rubber - M69 aircrew mask systems success

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Edison Investment Research

Andy Chambers

Avon Rubber - M69 aircrew mask systems success

Avon has announced that it has been awarded a sole source contract to supply the US Department of Defense (DoD) with M69 Joint Service Aircrew Mask Systems for Strategic Aircraft with a maximum value of $92.7m over up to seven years. As flagged at the FY18 results, it is a significant contract for Avon Protectionâ€™s military activities and should make an initial revenue contribution in FY19 once the first order is received in the near future. Using our estimates, Avon is trading on a FY20 P/E of 14.6x, a justifiable premium to its aerospace and defence peer group given its above average margins and improving growth prospects.

07/01/2019 2 EN

Underlying

Avon Rubber PLC

Avon Rubber is a technology group focusing on respiratory protection systems and milking point solutions through its two businesses, Avon Protection and milkrite , InterPuls. Avon Protection is a provider in Chemical, Biological, Radiological and Nuclear respiratory protection systems for the world's Military, Law Enforcement and Fire markets. milkrite , InterPuls provides milking point solutions to customers across the world.

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GB0000667013 London Stock Exchange United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Andy Chambers

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Avon Rubber - M69 aircrew mask systems success

Avon Technologies (AVON LN) - Strong delivery but priced-in - HOLD

Avon Technologies (AVON LN) - Defence as a haven asset!? - HOLD

Avon Technologies (AVON LN ) - Good progress but valuation full - HOLD

Manx Financial Group - Termination of coverage

musicMagpie - Termination of coverage

Topps Tiles - Accelerating growth through Q125

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