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Avon Technologies (GB:AVON)
LSE:AVON

Avon Technologies (AVON) AI Stock Analysis

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GB:AVON

Avon Technologies

(LSE:AVON)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
1,979.00p
▲(1.49% Upside)
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
Order Book Strength
A record, growing order book provides durable revenue visibility and backlog conversion potential. This supports production planning, capacity utilization, and near-term top-line sustainability, reducing execution risk and underpinning medium-term cash flow predictability.
Capital Efficiency & Cash Conversion
High ROIC and strong cash conversion indicate efficient use of capital and effective working capital management. These metrics support reinvestment in R&D or growth initiatives, lower financing needs, and improved long-term shareholder returns if sustained.
Product Pipeline & New Launches
Recent product launches broaden the addressable market and create differentiated offerings. New hardware and systems can drive multi-year revenue streams, recurring service or consumable sales, and strengthen competitive positioning if adoption continues.
Negative Factors
Free Cash Flow Decline
A very large FCF decline materially weakens financial flexibility; it constrains the company's ability to fund capex, R&D, or acquisitions internally. Persistent FCF weakness increases reliance on external funding and raises refinancing and liquidity risk over the medium term.
Recent Revenue Contraction
A meaningful revenue decline undermines operating leverage and makes margin improvement harder to sustain. Even with pockets of efficiency gains, contracting top-line threatens long-term profitability and the company’s ability to invest for growth unless revenue trends reverse.
Operational Ramp-up Risk
Shifting manufacturing models and ramping production create execution risk that can delay deliveries, increase costs, or cause quality issues. Such operational challenges can prevent timely conversion of backlog to revenue and compress margins over several quarters.

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

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.
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.
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue238.20M240.43M275.00M243.80M228.58M245.15M
Gross Profit97.57M98.58M105.80M85.90M66.10M59.83M
EBITDA26.13M30.48M30.90M8.00M24.70M-2.27M
Net Income7.74M7.89M3.00M-14.40M-25.28M
Balance Sheet
Total Assets233.83M233.83M312.90M348.10M344.90M399.42M
Cash, Cash Equivalents and Short-Term Investments9.95M9.95M14.00M13.20M9.42M14.13M
Total Debt60.46M60.46M79.40M98.60M76.81M70.13M
Total Liabilities110.01M110.01M146.40M188.70M136.28M193.65M
Stockholders Equity123.83M123.83M166.50M159.40M208.63M205.77M
Cash Flow
Free Cash Flow11.33M11.64M42.70M-3.90M14.83M-25.47M
Operating Cash Flow17.36M17.85M53.90M7.10M22.55M5.73M
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

Technical Analysis Sentiment
Positive
Last Price1950.00
Price Trends
50DMA
1847.76
Positive
100DMA
1920.59
Positive
200DMA
1839.62
Positive
Market Momentum
MACD
25.74
Negative
RSI
71.63
Negative
STOCH
82.04
Negative
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 1950 is above the 20-day moving average (MA) of 1834.80, above the 50-day MA of 1847.76, and above the 200-day MA of 1839.62, indicating a bullish trend. The MACD of 25.74 indicates Negative momentum. The RSI at 71.63 is Negative, neither overbought nor oversold. The STOCH value of 82.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AVON.

Avon Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
£529.61M15.6827.48%3.65%5.78%-6.80%
70
Neutral
£581.69M14.1722.36%5.91%-4.70%-2.21%
67
Neutral
£634.03M23.088.04%4.87%-7.30%-59.71%
67
Neutral
£540.14M9.4131.56%4.70%2.34%8.14%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
53
Neutral
£579.21M74.246.27%1.02%10.74%237.07%
51
Neutral
£499.98M-15.23-23.26%12.58%12.39%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AVON
Avon Technologies
1,986.00
489.27
32.69%
GB:CWR
Ceres Power Holdings
278.00
115.80
71.39%
GB:GFRD
Galliford Try
529.00
182.99
52.89%
GB:JHD
James Halstead
138.00
-24.01
-14.82%
GB:MGAM
Morgan Advanced Materials
228.50
-6.40
-2.72%
GB:MEGP
ME Group International
142.60
-38.64
-21.32%

Avon Technologies Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Buy Shares Under Employee Incentive Plan
Positive
Jan 6, 2026

Avon Technologies has disclosed that its chief executive officer, Jos Sclater, and chief financial officer, Rich Cashin, each acquired ordinary shares in the company under its HMRC-approved all-employee Share Incentive Plan. The transactions, executed on 5 January 2026 via the London Stock Exchange, form part of a salary-deduction scheme that enables staff to build an equity stake in the business and have been notified in line with EU Market Abuse Regulation requirements, underscoring ongoing alignment between senior management and shareholders as well as the group’s commitment to regulatory transparency.

The most recent analyst rating on (GB:AVON) stock is a Hold with a £1792.00 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 CFO Acquires and Partly Sells Shares Under Long-Term Incentive Plan
Neutral
Dec 23, 2025

Avon Technologies has disclosed a transaction involving Chief Financial Officer Rich Cashin, who acquired 26,514 ordinary shares for nil cost on 22 December 2025 following the 50% vesting of an award under the company’s Long Term Incentive Plan. Of these shares, 12,495 were sold at £17.99 each to cover tax and national insurance liabilities, leaving Cashin with 14,019 shares retained, in a move that reflects standard remuneration practices and enhances transparency over insider dealing in line with UK Market Abuse Regulation requirements.

The most recent analyst rating on (GB:AVON) stock is a Hold with a £1792.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Avon Technologies Secures $20.6 Million NATO Order for FM50 Respirators
Positive
Dec 11, 2025

Avon Technologies has announced a significant order for its FM50 respirators and FM61EU filters, valued at approximately $20.6 million, through the NATO Support and Procurement Agency. This order, to be delivered over the fiscal years 2026 and 2027, reinforces the company’s market position as a leader in warfighter protection amid a heightened global threat environment, aligning with its financial expectations for the coming years.

The most recent analyst rating on (GB:AVON) stock is a Hold with a £2000.00 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
Neutral
Dec 9, 2025

Avon Technologies plc has announced that certain PDMRs acquired ordinary shares under the company’s Long Term Incentive Plan, which vested on December 8, 2025. Steve Elwell and James Wilcox, both presidents within the company, acquired shares at no cost, with Elwell retaining some post-sale and Wilcox selling all his shares. This transaction was conducted to satisfy the company’s obligations under the UK Market Abuse Regulation, reflecting the company’s adherence to regulatory requirements and potentially impacting stakeholder perceptions of executive compensation and stock management.

The most recent analyst rating on (GB:AVON) stock is a Hold with a £2000.00 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 Enhances Stakeholder Engagement Through Share Incentive Plan
Positive
Dec 8, 2025

Avon Technologies plc announced that its Share Incentive Plan (SIP) facilitated the purchase of ordinary shares by key managerial personnel, including the CEO and CFO, on December 5, 2025. This move, compliant with the EU Market Abuse Regulation, underscores Avon’s commitment to employee investment and aligns with regulatory standards, potentially enhancing stakeholder confidence.

The most recent analyst rating on (GB:AVON) stock is a Hold with a £2000.00 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 DisclosuresShareholder Meetings
Avon Technologies Releases Annual Report and Announces 2026 AGM
Positive
Dec 5, 2025

Avon Technologies has announced the availability of its Annual Report & Accounts for the year ended 30 September 2025, along with the notice for its Annual General Meeting (AGM) scheduled for 30 January 2026. The AGM will take place at the Hampton Park West facility in Melksham, Wiltshire, where CEO Jos Sclater and CFO Rich Cashin will present the Group’s strategy and investment case, followed by a site tour. This event underscores Avon’s commitment to transparency and stakeholder engagement, potentially strengthening its market position and investor relations.

The most recent analyst rating on (GB:AVON) stock is a Hold with a £2000.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Avon Technologies Announces Leadership Appointment
Positive
Dec 1, 2025

Avon Technologies Plc has announced that Victor Chavez CBE, a Non-Executive Director at the company, will take on the role of Non-Executive Deputy Chairman at Solid State plc starting January 1, 2026. This strategic move aligns with UK Listing Rule 6.4.9 and may enhance Avon Technologies’ influence and connections within the industry, potentially benefiting stakeholders by expanding its leadership’s reach and experience.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £2400.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Avon Technologies Grants LTIP and DSBP Awards to Executives
Positive
Nov 21, 2025

Avon Technologies Plc has announced the grant of Long Term Incentive Plan (LTIP) and Deferred Share Bonus Plan (DSBP) awards to its key executives. These awards, which are tied to performance metrics such as earnings per share, return on invested capital, and total shareholder return, are designed to align the interests of the executives with those of the shareholders. The LTIP awards will vest in 2028, contingent on meeting specific performance conditions, while the DSBP awards will be exercisable from 2027. This strategic move is expected to enhance the company’s operational focus and drive long-term growth, benefiting stakeholders by potentially increasing shareholder value.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £2400.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Avon Technologies Executives Participate in Share Incentive Plan
Positive
Nov 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. These transactions, conducted on the London Stock Exchange, are part of an all-employee share plan approved by HM Revenue and Customs, allowing employees to acquire shares through salary deductions. This move underscores Avon’s commitment to aligning the interests of its leadership with those of its shareholders, potentially enhancing stakeholder confidence in the company’s governance and strategic direction.

The most recent analyst rating on (GB:AVON) stock is a Hold with a £2084.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

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.

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: Dec 18, 2025