Avon Technologies (GB:AVON)
LSE:AVON
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Avon Technologies
(LSE:AVON)
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Rating:58Neutral
Price Target:
1,664.00 p
▼(-7.86% Downside)
Action:Reiterated
Date:05/19/26
The score reflects an improving but still uneven fundamental picture (profit recovery and manageable leverage offset by revenue contraction and volatile free cash flow). Technicals are a meaningful drag due to a clear downtrend. Valuation is supportive, and the latest earnings call was positive with strong guidance and execution metrics, tempered by order intake and operational consistency risks.
Positive Factors
Order Book & Multi‑year Contracts
A $220m group order book with Avon-specific backlog (~$112m) and expanded framework agreements provides durable revenue visibility. Multi-year contract ceilings and pipeline depth reduce near-term top-line volatility and support predictable H2/FY27 conversion and planning.
Negative Factors
Revenue Volatility and Cash‑Conversion Inconsistency
Sharp FCF swings and prior years of negative free cash flow indicate persistent working‑capital and investment timing risk. Inconsistent cash conversion constrains reinvestment, raises liquidity sensitivity in downturns, and complicates reliable dividend and capex planning over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Order Book & Multi‑year Contracts
A $220m group order book with Avon-specific backlog (~$112m) and expanded framework agreements provides durable revenue visibility. Multi-year contract ceilings and pipeline depth reduce near-term top-line volatility and support predictable H2/FY27 conversion and planning.
Read all positive factors
Avon Technologies (AVON) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£513.86M
Dividend Yield1.02%
Average Volume (3M)101.06K
Price to Earnings (P/E)37.2
Beta (1Y)1.04
Revenue Growth4.62%
EPS Growth170.53%
CountryUK
Employees917
SectorIndustrials
Sector Strength72
IndustryMedical - Specialties
Share Statistics
EPS (TTM)0.61
Shares Outstanding30,258,194
10 Day Avg. Volume74,572
30 Day Avg. Volume101,055
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)3.76
Price to Sales (P/S)1.94
P/FCF Ratio40.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,190.00Price Target Upside21.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.22
Revenue Forecast (FY)£340.82M
Avon Technologies Business Overview & Revenue Model
Company Description
Avon Technologies Plc specializes in the development and production of respiratory protection equipment, catering to both military and industrial clients. The company further supplies polymer-based products to the dairy and defense sectors. Operat...
How the Company Makes Money
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Avon Technologies Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call communicates a strongly positive operational and financial story: double‑digit improvements in profitability metrics (operating profit +39%, EPS +45%), ROIC well ahead of targets, healthy order book and substantive product wins (including sole-source DoW filter award). Most lowlights are timing, operational consistency and supply‑chain related and management provided clear mitigations and near-term fixes (April cash receipts, preventive maintenance, procurement changes). Given the breadth of execution, balance sheet strength and visible pipeline that offset manageable operational issues, the overall tone is constructive and confidence‑led.Positive Updates
Strong overall financial performance
Group revenue of $160.8m, up ~6.8% YoY; adjusted operating profit $24.4m (margin 15.2%, >300bps improvement); operating profit up 39% and adjusted EPS $0.564, up >45% (constant currency). Dividend increased 6.6% to $0.081 per share.
Negative Updates
Order intake weakness and book-to-bill below 1
Order intake of $117.9m was down versus an exceptionally strong prior H1 and group book-to-bill was below 1; Team Wendy order intake declined, driven by timing on DoW awards and weaker commercial orders.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong overall financial performance
Group revenue of $160.8m, up ~6.8% YoY; adjusted operating profit $24.4m (margin 15.2%, >300bps improvement); operating profit up 39% and adjusted EPS $0.564, up >45% (constant currency). Dividend increased 6.6% to $0.081 per share.
Read all positive updates
Company Guidance
Management guided to deliver high single‑digit revenue growth for FY26 with adjusted operating profit margin expected toward the upper end of the 14–16% range and full‑year cash conversion above 80% (H1 was 38% but would have been ~100% after an $18m April receipt); they pointed to a strong H1 (revenue $160.8m, +6.8% cc; adjusted operating profit $24.4m, margin 15.2%; operating profit +39% cc; EPS $0.564, +45% cc; dividend $0.081, +6.6%), a robust $220m group order book (Avon Protection order book $112m; Avon revenue $92.9m, +23%), ROIC of 20.8% (up 450bps and above the >17% target), net debt/EBITDA 0.9x, average inventory turns 3x (Avon 4x), H1 transformation cash costs $3.2m (total program ~$7m), pension contributions $3.3m, and they expect Team Wendy production and margin recovery in H2 while keeping balance‑sheet optionality for M&A.Avon Technologies Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 324.04M | 323.50M | 275.00M | 243.80M | 228.58M | 248.30M |
| Gross Profit | 132.36M | 132.63M | 105.80M | 85.90M | 66.10M | 59.83M |
| EBITDA | 52.01M | 41.02M | 30.90M | 8.00M | 24.70M | 50.46M |
| Net Income | 18.07M | 10.61M | 3.00M | -14.40M | -7.60M | -25.28M |
Balance Sheet | ||||||
| Total Assets | 311.58M | 314.63M | 312.90M | 348.10M | 344.90M | 399.42M |
| Cash, Cash Equivalents and Short-Term Investments | 11.50M | 13.39M | 14.00M | 13.20M | 9.61M | 14.13M |
| Total Debt | 85.70M | 81.36M | 79.40M | 98.60M | 76.81M | 70.13M |
| Total Liabilities | 134.19M | 148.02M | 146.40M | 188.70M | 136.28M | 193.65M |
| Stockholders Equity | 177.39M | 166.61M | 166.50M | 159.40M | 208.63M | 205.77M |
Cash Flow | ||||||
| Free Cash Flow | 15.90M | 15.66M | 42.70M | -3.90M | 14.83M | -25.47M |
| Operating Cash Flow | 23.92M | 24.01M | 53.90M | 7.10M | 22.55M | 5.73M |
| Investing Cash Flow | -8.60M | -8.86M | -9.50M | -2.60M | -12.10M | -159.70M |
| Financing Cash Flow | -13.24M | -15.77M | -43.70M | -800.00K | -20.80M | -21.40M |
Avon Technologies Technical Analysis
Positive
1806.00
Price Trends
1701.16
Positive
1733.40
Negative
1820.91
Negative
Market Momentum
12.33
Negative
57.39
Neutral
64.97
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 1806 is above the 20-day moving average (MA) of 1701.20, above the 50-day MA of 1701.16, and below the 200-day MA of 1820.91, indicating a neutral trend. The MACD of 12.33 indicates Negative momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 64.97 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | £401.14M | 7.30 | 27.72% | 4.70% | 2.44% | 4.46% | |
72 Outperform | £512.62M | 14.35 | 30.23% | 3.65% | 0.53% | -8.91% | |
70 Neutral | £522.85M | 13.94 | 20.94% | 5.91% | -3.52% | -10.90% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £623.32M | 29.96 | 6.66% | 4.87% | -9.46% | -57.37% | |
58 Neutral | £513.86M | 37.17 | 9.32% | 1.02% | 4.62% | 170.53% | |
49 Neutral | £1.40B | -23.44 | -39.26% | ― | -37.09% | -67.49% |
* Industrials Sector Average
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Avon Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
Avon Technologies Beats Profit Targets Early as Defence Demand Surges
Positive
May 13, 2026
Avon Technologies reported a strong first half to fiscal 2026, with revenue up 6.8% to $160.8 million and adjusted operating profit jumping 39.4% to $24.4 million, pushing margins into its 14–16% target range and enabling the group to hit me...
Regulatory Filings and Compliance
Avon Technologies Executives Add Shares Through Incentive Plan
Neutral
May 6, 2026
Avon Technologies has disclosed routine share purchases by its chief executive officer and chief financial officer under the company’s HMRC‑approved Share Incentive Plan. The transactions, executed on 5 May on the London Stock Exchange...
Business Operations and StrategyFinancial Disclosures
Avon Technologies Sets May Dates for Interim Results and Investor Updates
Neutral
Apr 14, 2026
Avon Technologies plc, a specialist in protective equipment for global militaries and first responders, operates through two primary business units: Avon Protection for respiratory and integrated protection systems, and Team Wendy for helmet syste...
Regulatory Filings and Compliance
Avon Technologies Executives Add Shares Through Employee Incentive Plan
Positive
Apr 8, 2026
Avon Technologies plc disclosed that its chief executive officer Jos Sclater and chief financial officer Rich Cashin each acquired a small number of ordinary shares under the company’s HMRC-approved all-employee Share Incentive Plan. The tra...
Regulatory Filings and Compliance
Avon Technologies Discloses CEO’s Nil-Cost Share Transfer to Spouse
Neutral
Mar 27, 2026
Avon Technologies has disclosed an internal share transfer involving its chief executive officer in compliance with U.K. Market Abuse Regulation requirements. The notification underscores the company’s adherence to governance rules around tr...
Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Add Shares Under Employee Incentive Plan
Neutral
Mar 6, 2026
Avon Technologies has disclosed small share purchases by its chief executive officer Jos Sclater and chief financial officer Rich Cashin under the company’s HMRC-approved all-employee Share Incentive Plan. Each executive acquired eight ordin...
Business Operations and StrategyFinancial Disclosures
Avon Technologies Secures $12.7m CBRN Filter Order Bolstering FY2026 Outlook
Positive
Mar 6, 2026
Avon Technologies has announced a new order worth about $12.7 million for its MILCF50 CBRN filters from an existing Middle Eastern customer that already deploys the firm’s respirators. The filters are designed to protect against chemical and...
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.