Edison Investment Research - Avon Rubber PLC (AVON) Avon Rubber - Maintaining full-year consensus expectations

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Edison Investment Research

Toby Thorrington

Avon Rubber - Maintaining full-year consensus expectations

This morning Avon released its post-close trading statement for H121, which shows strong top-line growth and order intake. Trading continued to show progress, in line with management expectations for Q221, continuing the Q121 performance noted at the AGM. Management expects to meet FY21 consensus expectations, with growing momentum during H221 as new contract volumes build. We trim our above-consensus FY21 EPS estimate by 4% and maintain FY22, which are reported in US$ from the current year. Avon’s shares trade at a healthy premium to UK defence peers, warranted by top-line growth, high returns and strong cash flows.

09/04/2021 1 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

Toby Thorrington

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Avon Rubber - Maintaining full-year consensus expectations

Audio Note: Avon Protection - Capital Markets Event and Bull and Bear Case

Avon Protection - Unmasking its growth potential

Avon Protection (AVON LN) - Initiation: plenty of potential

Basilea Pharmaceutica - Cresemba milestone payments continue to roll in

AAC Clyde Space - Solid start to the year with further order growth

Tinexta - Typical seasonality in Q124

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