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Avon Rubber (AVON)

Business description

Avon Rubber designs, develops and manufactures products in the protection (70% FY18 sales) and dairy (30%) sectors. Its major contracts are with national security organisations such as the US DoD. Over 70% of 2018 sales were from the US.

Stock data

Market cap.£395.6m
Last close1,275.00p
High / Low (52 weeks)1475.0p / 1165.0p
Stock market listingLN
Forecast net cash (£m)61.9
Forecast gearing ratio (%)N/A
SectorAerospace & Defence

Price performance

Relative *0.9(2.1)16.3

* % Relative to local index

Other companies in sector Show

Company news

Director Deals - Avon Rubber PLC (AVON)

Wed, 16 May 2018 15:00:00 GMT

Broker Forecast - Peel Hunt issues a broker note on Avon Rubber PLC

Wed, 02 May 2018 11:02:07 GMT

Avon Rubber Plc 2018 Q2 - Results - Earnings Call Slides

Wed, 14 Mar 2018 17:15:00 GMT

Avon Rubber first-half profit up 5.6% as margins improve

Wed, 02 May 2018 12:33:45 GMT

Avon Rubber inks respirator agreement with UK government

Thu, 08 Mar 2018 16:52:30 GMT

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2017A 159.2 36.3 25.9 83.3 15.3 13.0
2018A 165.5 35.3 27.2 76.5 16.7 11.6
2019E 176.3 38.7 29.8 78.6 16.2 10.9
2020E 187.0 42.2 32.8 86.3 14.8 10.1

Last updated on 21/11/2018

Investment summary

Avon’s FY18 report demonstrated the success of the new business strategy, delivering growth across both divisions. Success continues to flow from the enhanced product portfolio and order progression is building visibility. Cash performance has also been solid, which underpins selective future acquisitions, including the Merrick's deal, while the disposal of AEF adds c £6m to cash. Overall, the approach is to grow the core, add selective product development and make value-enhancing acquisitions to accelerate growth.

Last updated on 29/11/2018

Industry outlook

Avon's long-standing, multi-level relationship with the US DoD is important to the group and the end-market backdrop is supportive. The active dialogue for the M50 replenishment phase should extend the programme for at least another 15 years plus a focus on higher price sophisticated mask systems provides an opportunity. Meanwhile, growth has been encouraging in Farm Services, building greater visibility into the business. 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 29/11/2018

Key management

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

Company address

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