reports
- Toby Thorrington
Avon Technologies - Record order book driving confident outlook
Avon Technologies’ FY24 results show the continued momentum seen throughout the year, with revenue growth of 12.2% y-o-y ($275m), adjusted operating profit growth of 53.4% y-o-y ($31.6m) and a record closing order book value of $225m, up 64.3% y-o-y. Return on invested capital (ROIC) grew 500bp y-o-y to 13.7%. Given Avon’s record order pipeline, disciplined capital allocation and strong cash generation, management expects the company to achieve both its medium-term operating margin (14–16%) and ...
- Robin Byde
Avon Protection (AVON LN)
Avon Protection issued an ad hoc trading update late last week lifting full year guidance again. Order intake, trading and efficiency improvements have been stronger-than expected. Notably, operational efficiency and reduced scrapping at Team Wendy has supported margin improvement at the Group level. We lift our forecasts for all years (FY24E-FY26E); on average by c.4% for revenue and c.9% for adjusted operating profit. Our Group operating margin is lifted from under 11% to over 11.5%; slightly ...
Avon Protection: 1 director
A director at Avon Protection bought 1,565 shares at 1,278p and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly s...
- Andy Hanson
- Carl Smith
- Robin Byde
Industrials Round-up - 08 July 2024
The UK industrial sector continues to strengthen with June output and order books increasing for a second consecutive month, albeit at a slightly slower pace than in May. We think it is too soon to declare conclusively a turnaround, but recent industrial and economic data have been reassuring, as inflation returned to the BoE’s 2% target and sentiment remained positive.
- Andy Hanson
- Carl Smith
- Robin Byde
Zeus Industrials Round-Up - 11 June 2024
As we approach the end of H1, recent industrial and economic indicators display an encouraging picture, cautiously supporting optimism for the latter half of 2024. UK manufacturing returned to growth in May, with many countries recording higher PMI readings. Inflation data across the globe was also encouraging, prompting the Bank of Canada and ECB to cut interest rates last week. UK GDP growth for Q1 was also positive and overall business confidence appears to have improved.
- Robin Byde
- Robin Byde
- Robin Byde
- Toby Thorrington
Avon Protection - Unmasking its growth potential
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 r...
- Robin Byde
Avon Protection (AVON LN) - Initiation: plenty of potential
Avon Protection is now on the right path strategically, focused on core body protection systems. We initiate coverage with a valuation of 1,100p against a current share price of 916p (+20%). The investment case is finely balanced. Global defence stocks have outperformed with rising conflict and bigger government budgets. We may now see a period of reflection for the sector as investors refocus on pipeline conversion and margins. Avon has performed well but somewhat lagged the global sector. The ...
- Toby Thorrington
Avon Protection - Termination of coverage
Edison Investment Research is terminating coverage on Avon Protection (AVON), Osirium Technologies (OSI), IQE (IQE), Kopy Goldfields (KOBY) and RhoVac (ROHVAC). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.
AVON PROTECTION sees a downgrade to Negative on account of less fundam...
The independent financial analyst theScreener just lowered the general evaluation of AVON PROTECTION (GB), active in the Defense industry. As regards its fundamental valuation, the title now shows 1 out of 4 stars while market behaviour can be considered risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Negative. As of the analysis date January 25, 2022, the closing price was GBp 1,011.00 and its target price w...
Edison Investment Research Limited: Avon Protection (AVON): Refocused ...
Edison Investment Research Limited Edison Investment Research Limited: Avon Protection (AVON): Refocused Protection set to resume growth 21-Jan-2022 / 07:00 GMT/BST London, UK, 21 January 2022 Avon Protection (AVON): Refocused Protection set to resume growth Avon Protection should be well positioned to recover strongly following the value destruction caused by the relatively small Armor activity, which now faces a managed closure over the next two years. Future growth rates are diminished by the exit but remain healthy in the further focused core of Respiratory and Head Prot...
- Toby Thorrington
Avon Protection - Refocused Protection set to resume growth
Avon Protection should be well positioned to recover strongly following the value destruction caused by the relatively small Armor activity, which now faces a managed closure over the next two years. Future growth rates are diminished by the exit but remain healthy in the further focused core of Respiratory and Head Protection. Management needs to restore investor confidence as it continues with its growth strategy, in order to regain the historical premium rating to its UK defence peers. In thi...
- Toby Thorrington
Avon Protection - Refocused Protection set to resume growth
Avon Protection should be well positioned to recover strongly following the value destruction caused by the relatively small Armor activity, which now faces a managed closure over the next two years. Future growth rates are diminished by the exit but remain healthy in the further focused core of Respiratory and Head Protection. Management needs to restore investor confidence as it continues with its growth strategy, in order to regain the historical premium rating to its UK defence peers. In thi...
- Toby Thorrington
Avon Protection - Sentiment needs restoring to access value
The reaction to the latest product approval delays and the strategic review in the body armour business appears to more than discount the likely financial impact and does not reflect solid progress in the core of the group involved in respirators and helmets. While the full ramifications of the delays and the strategic review are yet to be quantified by management, we assume a $40m reduction in FY22e revenue, affecting our FY22e EPS by 19%. We anticipate a strong recovery in FY23 EPS due to loss...
- Toby Thorrington
Avon Protection - Sentiment needs restoring to access value
The reaction to the latest product approval delays and the strategic review in the body armour business appears to more than discount the likely financial impact and does not reflect solid progress in the core of the group involved in respirators and helmets. While the full ramifications of the delays and the strategic review are yet to be quantified by management, we assume a $40m reduction in FY22e revenue, affecting our FY22e EPS by 19%. We anticipate a strong recovery in FY23 EPS due to loss...
- Toby Thorrington
Avon Protection - Confirming the growth path
Avon Protection has indicated that management guidance for FY21 revenue and EBITDA margin has been achieved before an additional one-off, non-cash inventory write-down of around $4m in ballistics. Cash generation was better than anticipated after record levels of investment and order intake remained strong despite previously indicated pandemic delays. The healthy opening backlog underpins strong growth in FY22 as ballistics revenues ramp up, Team Wendy makes a full year contribution and EBITDA m...
- Toby Thorrington
Avon Protection - Confirming the growth path
Avon Protection has indicated that management guidance for FY21 revenue and EBITDA margin has been achieved before an additional one-off, non-cash inventory write-down of around $4m in ballistics. Cash generation was better than anticipated after record levels of investment and order intake remained strong despite previously indicated pandemic delays. The healthy opening backlog underpins strong growth in FY22 as ballistics revenues ramp up, Team Wendy makes a full year contribution and EBITDA m...
- Toby Thorrington
Avon Protection - Pandemic disruption masks commercial progress
The impact of the pandemic on Avon Protection has intensified during H221. Despite a strong commercial performance management has lowered guidance significantly for FY21 and FY22 and we have reduced our estimates accordingly. The reduction comes on top of the previously announced deferrals to new ballistic protection contracts that remain on track for first delivery in FY22. We have lowered our FY21 and FY22 fully diluted adjusted EPS by 43% and 27% respectively to reflect the guidance. Manageme...
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