Avon Rubber (AVON)

Business description

Avon Rubber designs, develops and manufactures products in the respiratory protection, defence (70% of 2017 sales) and dairy (30%) sectors. Its major contracts are with national security and safety organisations such as the DoD. 75% of sales are from the US and 25% are from Europe.

Stock data

Market cap.£425m
Last close1,370.00p
High / Low (52 weeks)1370.0p / 909.0p
Stock market listingLN
Forecast net cash (£m)41.4
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual9.65.434.3
Relative *2.99.628.8

* % Relative to local index

Other companies in sector Show

Company news

Investment summary

Avon started FY18 with a new growth strategy and it is bearing fruit. Order growth is strong as the company is leveraging market dynamics across both divisions. The capital markets day demonstrated the quality of the portfolio. Cash performance has also been solid, which underpins selective future acquisitions. The significantly changed management team has developed a new, threefold growth strategy. The approach is to grow the core, add selective product development and make value-enhancing acquisitions to accelerate growth.

Last updated on 06/04/2018

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 142.9 29.9 20.7 70.5 19.4 13.6
2017A 163.2 36.0 25.6 82.3 16.6 14.0
2018E 163.2 36.3 26.4 74.5 18.4 12.1
2019E 169.2 38.1 28.1 74.7 18.3 11.8

Last updated on 03/04/2018

Latest video

Executive Interview - Avon Rubber 2015 Preliminary Results

Industry outlook

The US defence budget environment looks promising for Avon as it increases army troop numbers, while order activity has picked up closer to home. Avon is increasingly focused on higher price sophisticated mask systems. Meanwhile, the supportive dairy market environment has allowed the positive growth trends in the division to continue globally. With the group’s recent years’ investments also set to drive further growth over the coming years, we maintain our view that Avon has the market position, product portfolio and strategic ambition to further accelerate its growth through organic and inorganic means.

Last updated on 06/04/2018

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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