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Avon Technologies (GB:AVON)
LSE:AVON
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Avon Technologies
(LSE:AVON)
Select Model
Select Model
Rating:53Neutral
Price Target:
1,792.00p
▼(-1.75% Downside)
Avon Technologies' overall score reflects a positive outlook from the earnings call, highlighting strong revenue and profit growth and strategic success. However, financial performance and technical indicators reveal challenges in profitability, liquidity, and bearish momentum, impacting the overall score.
Positive Factors
Revenue Growth
The 14% revenue growth and 31% increase in adjusted operating profit indicate strong market demand and effective business strategies, supporting long-term financial health.
Record Order Book
A record order book reflects robust future demand and provides revenue visibility, enhancing the company's stability and growth potential.
Successful Product Launches
Successful new product launches expand the company's portfolio and market reach, driving future revenue growth and competitive positioning.
Negative Factors
Declining Cash Flow
A significant decline in free cash flow raises concerns about the company's ability to fund operations and investments, potentially impacting long-term growth.
Production Ramp-Up Challenges
Challenges in production ramp-up may lead to operational inefficiencies and increased costs, affecting profitability and market responsiveness.
Potential New Competition
Potential new competition could pressure market share and pricing, challenging the company's competitive advantage and profitability.
Avon Technologies (AVON) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£535.25M
Dividend Yield1.02%
Average Volume (3M)101.06K
Price to Earnings (P/E)68.2
Beta (1Y)0.92
Revenue Growth10.74%
EPS Growth237.07%
CountryUK
Employees917
SectorIndustrials
Sector Strength72
IndustryMedical - Specialties
Share Statistics
EPS (TTM)0.37
Shares Outstanding30,258,194
10 Day Avg. Volume74,572
30 Day Avg. Volume101,055
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,130.00Price Target Upside16.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Avon Technologies Business Overview & Revenue Model
Company DescriptionAvon Technologies Plc engages in the manufacture and design of respiratory protection products for defense and industrial users. The firm also offers polymer based products for the dairy and defense industries. It operates through the Respiratory Protection and Head Protection segments. The company was founded in 1885 and is headquartered in Melksham, the United Kingdom.
How the Company Makes MoneyAvon Technologies generates revenue through multiple streams, primarily by offering subscription-based services and licensing its proprietary technology to businesses and consumers. The company also earns income through hardware sales, including telecommunications equipment and smart devices. Significant partnerships with major telecommunications providers enhance its market reach and contribute to revenue growth. Additionally, AVON capitalizes on government contracts and projects in the smart city sector, which provide substantial financial support and recurring income.
Avon Technologies Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with significant growth in revenue, profitability, and a record order book. There were challenges related to production ramp-up and potential new competition, but the company's strategic initiatives and transformation efforts have been successful. The impact of the U.S. government shutdown was noted as a temporary issue.Q4-2025 Updates
Positive Updates
Significant Revenue and Profit Growth
Revenue grew by 14%, leading to a 31% increase in adjusted operating profit, reaching $40.3 million. This reflects a strong performance across the board, with 16% growth in Avon Protection and 12% growth in Team Wendy.
Record Order Book
The order book at the end of 2025 reached a record $263 million, 16% higher than the prior year. Avon Protection's order intake was up 18% and the order book was up 63%.
Improved Financial Metrics
Return on invested capital came in at 18.6%, with cash conversion at 90%. Net finance costs reduced by 16% to $5.4 million.
Successful Product Launches
Launch of new products such as MITR lightweight Half Mask and powered goggles, and the CS-PAPR system, with significant interest and sales expected to increase in 2026.
Transformation Success
Most transformation initiatives are nearly complete, with significant operational improvements and efficiency gains.
Negative Updates
Challenges with Production Ramp-Up
Operational risk in Team Wendy associated with production ramp-up and the move from batch to flow manufacturing, with a need for further increases in production rates.
Potential New Competition
Risk of increased competition on the NextGen IHPS program with a potential new supplier entering the market.
Impact of U.S. Government Shutdown
Temporary impact on working capital in the first half due to a government shutdown affecting the delivery of helmets to the Department of War.
Company Guidance
During the call, Avon Protection provided a comprehensive overview of their financial progress and future guidance. The company reported a 14% revenue growth for the year, with adjusted operating profit up 31% to $40.3 million and a return on invested capital (ROIC) of 18.6%. The order book reached a record $263 million, 16% higher than the previous year. Cash conversion stood at 90%, and net debt leverage was below 0.9x. The operating profit margin improved by 130 basis points to 12.8%, with a target range of 14% to 16% expected in 2026. The adjusted basic EPS rose by 35% to $0.912 per share. Avon Protection's order intake increased by 18%, while their order book grew by 63%, leading to a 16% rise in revenue. The company's strategic focus includes enhancing their scalable platform, investing in R&D, and considering acquisitions to complement organic growth. They expect high single-digit revenue growth and operating margins within their target range in 2026. The transformation program, which is nearing completion, aims to further optimize operations and reduce costs, with a planned $6 million investment in FY '26.Avon Technologies Financial Statement Overview
Summary
Avon Technologies shows mixed financial health. While operational efficiency has improved, challenges remain with revenue growth and cash flow generation. Leverage management has improved, but profitability and liquidity are concerns.Income Statement
Avon Technologies has faced declining revenue growth, with a notable decrease of 12.57% in the latest period. The gross profit margin has been relatively stable, but net profit margins remain low. The EBIT and EBITDA margins show some improvement, indicating potential operational efficiency gains.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved over time, reflecting better leverage management. However, the return on equity remains low, indicating challenges in generating returns for shareholders. The equity ratio suggests a stable asset base, but overall profitability needs enhancement.55
Neutral
Cash Flow
Free cash flow has significantly declined, with a 72.73% drop in the latest period, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio indicates potential liquidity issues.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 238.20M | 240.43M | 275.00M | 243.80M | 228.58M | 245.15M |
| Gross Profit | 97.57M | 98.58M | 105.80M | 85.90M | 66.10M | 59.83M |
| EBITDA | 26.13M | 30.48M | 30.90M | 8.00M | 24.70M | -2.27M |
| Net Income | 7.74M | 7.89M | 3.00M | -14.40M | ― | -25.28M |
Balance Sheet | ||||||
| Total Assets | 233.83M | 233.83M | 312.90M | 348.10M | 344.90M | 399.42M |
| Cash, Cash Equivalents and Short-Term Investments | 9.95M | 9.95M | 14.00M | 13.20M | 9.42M | 14.13M |
| Total Debt | 60.46M | 60.46M | 79.40M | 98.60M | 76.81M | 70.13M |
| Total Liabilities | 110.01M | 110.01M | 146.40M | 188.70M | 136.28M | 193.65M |
| Stockholders Equity | 123.83M | 123.83M | 166.50M | 159.40M | 208.63M | 205.77M |
Cash Flow | ||||||
| Free Cash Flow | 11.33M | 11.64M | 42.70M | -3.90M | 14.83M | -25.47M |
| Operating Cash Flow | 17.36M | 17.85M | 53.90M | 7.10M | 22.55M | 5.73M |
| Investing Cash Flow | -6.41M | -6.59M | -9.50M | -2.60M | -10.50M | -157.67M |
| Financing Cash Flow | -11.40M | -11.72M | -43.70M | -800.00K | -15.70M | -19.55M |
Avon Technologies Technical Analysis
Positive
1824.00
Price Trends
1859.72
Negative
1945.26
Negative
1812.75
Positive
Market Momentum
-20.73
Negative
49.91
Neutral
75.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVON, the sentiment is Positive. The current price of 1824 is above the 20-day moving average (MA) of 1806.90, below the 50-day MA of 1859.72, and above the 200-day MA of 1812.75, indicating a neutral trend. The MACD of -20.73 indicates Negative momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 75.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AVON.
Avon Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | £1.28B | ― | ― | 7.22% | ― | ― | |
64 Neutral | £236.15M | 16.34 | 25.95% | 1.60% | 7.23% | 26.46% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £1.28B | 26.52 | 14.44% | 1.64% | -2.53% | 22.25% | |
61 Neutral | £50.12B | 25.99 | 17.59% | 1.99% | 11.60% | 8.03% | |
58 Neutral | £2.33B | -11.57 | ― | 2.00% | -4.59% | -256.51% | |
53 Neutral | £535.25M | 68.19 | 6.27% | 1.02% | 10.74% | 237.07% |
* Industrials Sector Average
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Avon Technologies Corporate Events
Financial Disclosures
Avon Technologies to Announce Full Year 2025 Results
Neutral
Oct 16, 2025
Avon Technologies plc has announced that it will release its Full Year 2025 results on 12 November 2025. The company will host an in-person presentation for investors and analysts, along with a live webcast, to discuss the results. Additionally, a live presentation and Q&A session for retail investors will be held on 14 November 2025. This announcement signifies Avon’s commitment to transparency and engagement with its stakeholders, potentially impacting its market positioning and investor relations.
The most recent analyst rating on (GB:AVON) stock is a Hold with a £19.10 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 Enhances Stakeholder Alignment with Share Incentive Plan
Positive
Oct 8, 2025
Avon Technologies plc announced that its Share Incentive Plan (SIP) facilitated the acquisition of ordinary shares by key managerial personnel, including the CEO and CFO, as part of an all-employee share plan. This move, compliant with the EU Market Abuse Regulation, underscores Avon’s commitment to aligning employee interests with company performance, potentially strengthening stakeholder confidence and enhancing market positioning.
The most recent analyst rating on (GB:AVON) stock is a Hold with a £2124.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.
Executive/Board ChangesRegulatory Filings and Compliance
Avon Technologies Executives Acquire Shares Under Incentive Plan
Positive
Sep 8, 2025
Avon Technologies plc announced the acquisition of ordinary shares by two key managerial figures, CEO Jos Sclater and CFO Rich Cashin, under the company’s Share Incentive Plan. This move, disclosed in compliance with the EU Market Abuse Regulation, underscores 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 Hold with a £2075.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.
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.
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.