Avon Rubber (AVON)

Business description

Avon Rubber designs, develops and manufactures products in the respiratory protection, defence (71% of 2016 sales) and dairy (29%) sectors. Its major contracts are with national security and safety organisations such as the DoD.

Stock data

Market cap.£322.6m
Last close1,040.00p
High / Low (52 weeks)1119.0p / 825.0p
Stock market listingLN
Forecast net cash (£m)19.1
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual2.9(5.6)16.9
Relative *2.8(4.5)7.6

* % Relative to local index

Other companies in sector Show

Company news

Chief exits high-flying Avon Rubber

Wed, 29 Apr 2015 10:54:34 GMT

Is It Finally Time To Buy Avon Rubber plc And Rolls-Royce Holding PLC?

Tue, 26 Jan 2016 11:03:14 GMT

4 smoking small caps for shrewd investors! Avon Rubber plc, Trifast plc ...

Wed, 04 May 2016 09:22:30 GMT

Can HSBC Holdings plc, The Sage Group plc and Avon Rubber plc help to 'Brexit ...

Mon, 04 Jul 2016 08:15:00 GMT

Is Avon Rubber plc (LSE:AVON) Financially Strong Enough To Weather A Storm?

Tue, 14 Feb 2017 10:44:38 GMT

Investment summary

Avon Rubber’s strong H117 results allayed any concerns that the change in management team might have distracted this growth company from the task in hand. In fact, H117 numbers proved quite the opposite. Revenue was up 7% organically, with flat margins despite slightly higher costs. EPS was flat year-on-year, but this is purely a function of an anomalously low tax charge in FY16 of 1%. The CEO has shown ruthless focus in ensuring that R&D is concentrated on financially viable projects to stimulate further growth.

Last updated on 03/08/2017

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 134.3 26.6 19.8 56.1 18.5 15.3
2016A 142.9 30.8 21.6 74.2 14.0 9.9
2017E 168.9 35.7 25.0 66.6 15.6 9.6
2018E 178.7 36.9 26.9 71.4 14.6 9.2

Last updated on 25/07/2017

Latest video

Executive Interview - Avon Rubber 2015 Preliminary Results

Industry outlook

The FY18 US Defence Budget looks promising for Avon as it increases army troop numbers by 4%. Sales to EMEA and North America have increased, as have sales of fire products following the acquisition of Argus. Avon is increasingly focused on higher price sophisticated mask systems. Dairy has benefited from a rebound in the price of milk. The Farm Services model is progressing well and the roll-out of the tag exchange has been brought forward to H217.

Last updated on 03/08/2017

Key management

David Evans, Chairman
Paul McDonald, CEO
Nick Keveth, CFO

Company address

Hampton Park West
Semington Road
Melksham
Wiltshire
SN12 6NB
United Kingdom
+44 (0)1225 896800.
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