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Avon Technologies (GB:AVON)
LSE:AVON
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Avon Technologies (AVON) AI Stock Analysis

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GB:AVON

Avon Technologies

(LSE:AVON)

Rating:65Neutral
Price Target:
2,075.00p
▲(8.19% Upside)
Avon Technologies' overall stock score is driven by strong financial performance and positive earnings call highlights, indicating growth potential. However, bearish technical indicators and high valuation metrics present significant risks. The company's strategic initiatives and robust order book provide a positive outlook, but investors should be cautious of the current technical and valuation challenges.
Positive Factors
Contract Wins
Avon Protection has received two European NATO contracts to supply FM50 respirators and C50 protective masks to the Ukrainian Armed Forces.
Financial Performance
Avon delivered a good set of 1H25 Interims with confidently pitched outlook commentary.
Growth Opportunities
There is growing confidence in the evolution of the growth opportunities available to the group.
Negative Factors
Restructuring Risks
More improvements are expected over the next few years if the restructuring plan goes well.

Avon Technologies (AVON) vs. iShares MSCI United Kingdom ETF (EWC)

Avon Technologies Business Overview & Revenue Model

Company DescriptionAvon Technologies (AVON) is a leading company in the telecommunications and technology sector, specializing in providing advanced communication solutions and services. The company focuses on delivering innovative products such as network infrastructure, software solutions, and cybersecurity services, catering to both enterprise clients and individual consumers. With a commitment to enhancing connectivity and security, Avon Technologies operates in various markets, including mobile, broadband, and IoT (Internet of Things) sectors.
How the Company Makes MoneyAvon Technologies generates revenue primarily through the sale of its core products and services, which include network hardware, software licenses, and managed services. The company has a tiered pricing model for its software solutions, offering subscriptions and one-time purchase options to suit different customer needs. Additionally, Avon capitalizes on its partnerships with telecommunications providers and technology firms, enabling it to offer bundled solutions and access to new markets. Revenue is also supplemented through maintenance contracts and consultancy services, which provide ongoing support and expertise to clients. Overall, the diverse product offerings and strategic partnerships play a crucial role in driving the company’s earnings.

Avon Technologies Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant growth in revenue, operating profit, and EPS. The company reported record order books and showed effective operational improvements, especially in the Avon Protection segment. However, challenges such as tariff impacts, a decline in Team Wendy's order intake, and recruitment issues in Cleveland were noted. Despite these challenges, the overall outlook remains positive with strategic initiatives in place to drive future growth.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Closing order book up 24%, revenue up 17%, operating profit up 48%, and EPS up 76% compared to the same period last year on a constant currency basis. ROIC improved by 660 basis points to 16.3%.
Record Order Book
Order intake of $170.5 million with a record $247 million order book, supporting confidence in future growth.
Operational Efficiency and Production Improvements
Moved production out of Californian facility ahead of schedule, ramping up production in Salem and Cleveland. Improved operational metrics and continued investment in transformation programs.
Avon Protection Segment Success
Order book increased 69% year-on-year; strong demand for core products, including NATO mask agreements and underwater rebreathers.
Team Wendy Growth
Order book of $153 million up by $10 million over six months; continued demand for bump helmets and commercial growth both domestically and internationally.
Negative Updates
Tariff Impact
Direct impact of tariffs around $800,000, with potential indirect impacts through the supply chain.
Team Wendy Order Intake Decline
Order intake declined in the first half, lapping a tough comparative from 2024.
Recruitment Challenges
High attrition in first month of recruitment for the Cleveland facility, with a need to triple production.
Company Guidance
In a recent call, the company reaffirmed its medium-term guidance despite geopolitical and economic uncertainties. Key metrics included a 24% increase in the order book, a 17% rise in revenue, a 48% boost in operating profit, and a 76% increase in EPS compared to the previous year. The company remains on track to achieve its margin targets a year ahead of schedule, aiming for a 14% to 16% operating profit margin by 2026. Additionally, the company reported a 660 basis point improvement in ROIC to 16.3%, with cash conversion expected to reach 80% for the full year. The company is also focused on significant investments in R&D and strategic operational improvements, including the transition of production facilities and the development of new products to drive future growth.

Avon Technologies Financial Statement Overview

Summary
Avon Technologies demonstrates strong revenue growth and improved gross profit margins, with a stable balance sheet and significant improvements in cash flow. However, low net profit margins and return on equity indicate areas for improvement.
Income Statement
78
Positive
Avon Technologies has shown a strong revenue growth rate of 12.77% from 2023 to 2024, indicating positive business momentum. The gross profit margin improved to 38.47% in 2024, reflecting efficient cost management. However, the net profit margin remains low at 1.09%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are 3.89% and 11.24%, respectively, indicating moderate operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio of 0.48 in 2024 shows a balanced capital structure with manageable leverage. Return on equity is low at 1.8%, indicating limited profitability relative to shareholder equity. The equity ratio of 53.21% suggests a strong equity base, providing financial stability.
Cash Flow
82
Very Positive
Avon Technologies has demonstrated a significant improvement in free cash flow, moving from negative to a positive $42.7 million in 2024. The operating cash flow to net income ratio is robust at 17.97, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 14.23, reflecting efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue275.00M275.00M243.80M228.58M245.15M168.00M
Gross Profit105.80M105.80M85.90M66.10M59.83M58.50M
EBITDA30.90M30.90M8.00M24.70M-2.27M23.00M
Net Income3.00M3.00M-14.40M-25.28M7.00M
Balance Sheet
Total Assets312.90M312.90M348.10M344.90M399.42M356.80M
Cash, Cash Equivalents and Short-Term Investments14.00M14.00M13.20M9.42M14.13M147.00M
Total Debt79.40M79.40M98.60M76.81M70.13M53.80M
Total Liabilities146.40M146.40M188.70M136.28M193.65M176.70M
Stockholders Equity166.50M166.50M159.40M208.63M205.77M180.10M
Cash Flow
Free Cash Flow42.70M42.70M-3.90M14.83M-25.47M-13.20M
Operating Cash Flow53.90M53.90M7.10M22.55M5.73M2.40M
Investing Cash Flow-9.50M-9.50M-2.60M-10.50M-157.67M76.20M
Financing Cash Flow-43.70M-43.70M-800.00K-15.70M-19.55M19.20M

Avon Technologies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1918.00
Price Trends
50DMA
2030.26
Negative
100DMA
1818.24
Positive
200DMA
1624.36
Positive
Market Momentum
MACD
-35.42
Positive
RSI
39.70
Neutral
STOCH
47.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVON, the sentiment is Negative. The current price of 1918 is below the 20-day moving average (MA) of 1982.60, below the 50-day MA of 2030.26, and above the 200-day MA of 1624.36, indicating a neutral trend. The MACD of -35.42 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 47.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AVON.

Avon Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
£572.67M113.184.18%0.97%14.69%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
$69.26B28.3617.59%2.94%
71
Outperform
£1.45B37.5011.62%1.46%8.00%674.47%
71
Outperform
£201.83M13.7325.95%1.86%7.23%26.46%
63
Neutral
£1.45B
7.22%
56
Neutral
£2.58B17.97-23.92%1.85%1.02%-240.44%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AVON
Avon Technologies
1,918.00
702.03
57.73%
BAESF
BAE Systems
24.17
7.46
44.64%
GB:CHG
Chemring
540.00
159.17
41.80%
GB:MSI
MS International
1,235.00
241.07
24.25%
GB:BC88
Chemring
97.00
0.00
0.00%
GB:QQ
QinetiQ
478.00
36.24
8.20%

Avon Technologies Corporate Events

Dividends
Avon Technologies Announces Interim Dividend Exchange Rate
Neutral
Aug 13, 2025

Avon Technologies has announced the currency exchange rate for its interim dividend of 7.6 US cents per share, which will be paid in GBP Sterling at a rate of 1.3567, equating to 5.60 pence per share. This dividend will be distributed to eligible shareholders on 5 September 2025, with implications for shareholder returns and company financial strategies.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1535.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and Strategy
Avon Technologies Executives Participate in Share Incentive Plan
Neutral
Aug 7, 2025

Avon Technologies plc announced that its Share Incentive Plan (SIP) facilitated the purchase of ordinary shares by two of its senior executives, CEO Jos Sclater and CFO Rich Cashin. The transactions, conducted on the London Stock Exchange, align with the company’s strategy to involve employees in its ownership structure, potentially enhancing stakeholder alignment and commitment.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1535.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Acquire Shares Under Incentive Plan
Positive
Jul 17, 2025

Avon Technologies announced that three of its senior executives, including the CEO, CFO, and Director of Corporate Affairs, have acquired ordinary shares in the company through its Share Incentive Plan. This move, conducted in compliance with the EU Market Abuse Regulation, underscores the company’s commitment to aligning management interests with those of its shareholders, potentially strengthening stakeholder confidence.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1535.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Avon Technologies Secures £10.2 Million UK MoD Order for Ukraine
Positive
Jun 23, 2025

Avon Technologies plc has secured a £10.2 million order from the UK Ministry of Defence for FM50 respirators to support the Armed Forces of Ukraine. This order highlights Avon’s critical role in the UK’s defense industrial base and its commitment to international military support, reinforcing trust in its products and expanding its order book for the fiscal year 2026.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Announces Change in Major Holdings
Neutral
Jun 10, 2025

Avon Technologies Plc, a UK-based company, has announced a change in its major holdings as Alantra EQMC Asset Management SGIIC, S.A., based in Madrid, Spain, has adjusted its voting rights in the company. The adjustment involves a decrease in voting rights from 17.76% to 16.18%, which was officially notified on June 9, 2025. This change reflects a shift in the shareholder structure, potentially impacting the company’s governance and strategic decision-making.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Participate in Share Incentive Plan
Positive
Jun 9, 2025

Avon Technologies plc announced that three of its senior managers, including the CEO, CFO, and Director of Corporate Affairs, have acquired shares through the company’s Share Incentive Plan. This move, conducted under the EU Market Abuse Regulation, reflects the company’s commitment to aligning managerial interests with shareholder value, potentially strengthening stakeholder confidence.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Avon Technologies Secures $18.3 Million DoD Order for M50 Masks
Positive
Jun 5, 2025

Avon Technologies’ Avon Protection unit has secured an $18.3 million order from the US Department of Defense for M50 Joint Service General Purpose masks and carriers, reinforcing its role as the sole supplier of these critical CBRN respirators to the US military. This order, part of an existing framework contract, highlights the ongoing demand for Avon’s products in a growing CBRN threat environment and strengthens its order book for the upcoming financial year.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1745.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Other
Avon Technologies Announces Change in Major Holdings
Neutral
May 29, 2025

Avon Technologies Plc, a UK-based company, has reported a change in its major holdings. Alantra EQMC Asset Management SGIIC, S.A., based in Madrid, Spain, has adjusted its voting rights in Avon Technologies, reducing its stake from 18.12% to 17.76%. This change reflects a decrease in the total number of voting rights held by Alantra EQMC Asset Management, which may influence the company’s decision-making and shareholder dynamics.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Avon Technologies Reports Strong Interim Results Amid Rising Global Demand
Positive
May 21, 2025

Avon Technologies Plc reported strong financial performance for the first half of FY2025, with a significant increase in order book, revenue, and profit margins. The company has seen substantial growth in orders, particularly from NATO countries and the US Department of Defense, driven by global instability and increased defense spending. Avon Technologies is on track to meet its medium-term financial targets ahead of schedule, with ongoing operational improvements and strategic investments expected to further enhance its market position.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Protection stock, see the GB:AVON Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Avon Technologies Announces Board Change
Neutral
May 20, 2025

Avon Technologies, a company involved in various technological sectors, has announced a change in its board of directors. Bindi Foyle, currently serving as the Senior Independent Non-Executive Director, will take on a new role as a Non-Executive Director at Hilton Food Group plc starting June 1, 2025. This move is part of the company’s compliance with UK Listing Rule 6.4.9(2) and may influence both companies’ strategic directions.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Protection stock, see the GB:AVON Stock Forecast page.

Executive/Board Changes
Avon Technologies Announces Director Change
Neutral
May 16, 2025

Avon Technologies Plc has announced a change in its board of directors. Bindi Foyle, the Senior Independent Non-Executive Director, will be stepping down from her position as Group Finance Director on May 16, 2025. This change is in compliance with UK Listing Rule 6.4.9R and may impact the company’s governance structure.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Protection stock, see the GB:AVON Stock Forecast page.

M&A TransactionsRegulatory Filings and Compliance
Avon Technologies Announces Change in Voting Rights Structure
Neutral
May 15, 2025

Avon Technologies Plc, a UK-based company, has announced a change in its voting rights structure following an acquisition or disposal of voting rights by JTC Share Plan Trustees (Guernsey) Limited. The transaction, which occurred on May 12, 2025, resulted in JTC Share Plan Trustees holding a total of 3.104339% of the voting rights in Avon Technologies. This adjustment in voting rights is significant for stakeholders as it reflects changes in shareholder influence and control within the company.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Protection stock, see the GB:AVON Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 02, 2025