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Avon Technologies (GB:AVON)
LSE:AVON
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Avon Technologies
(LSE:AVON)
Select Model
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Rating:66Neutral
Price Target:
2,084.00p
▲(13.51% Upside)
Avon Technologies' strong financial performance and positive earnings call outlook are significant strengths, indicating potential for future growth. However, the stock's technical indicators suggest bearish momentum, and its high P/E ratio raises concerns about overvaluation. These factors contribute to a moderate overall stock score.
Positive Factors
Revenue Growth
A 17% increase in revenue signifies strong demand for Avon's products and services, suggesting a robust market position and effective sales strategy.
Operational Efficiency
Streamlining production processes enhances operational efficiency, reducing costs and potentially increasing profit margins over time.
Order Book Growth
A record order book indicates strong future revenue potential, reflecting customer confidence and market demand for Avon's offerings.
Negative Factors
Low Net Profit Margins
Persistently low net profit margins suggest challenges in cost management or pricing power, potentially affecting long-term profitability.
Recruitment Challenges
Recruitment issues could hinder production scaling and operational efficiency, impacting the company's ability to meet demand.
Tariff Impact
Tariff impacts increase costs and can strain supply chains, potentially reducing competitiveness and profit margins.
Avon Technologies (AVON) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£570.89M
Dividend Yield0.97%
Average Volume (3M)101.06K
Price to Earnings (P/E)112.6
Beta (1Y)1.02
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 Ratio-1.01
Price to Book (P/B)2.19
Price to Sales (P/S)1.33
P/FCF Ratio8.54
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 Upside16.01% 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 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: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 positive growth trends with improving revenue and gross profit margins. The balance sheet is stable with a healthy equity ratio and manageable debt levels. Cash flow performance is strong, with significant improvements in free cash flow. However, the company needs to enhance its net profit margins and return on equity to further strengthen its financial position.Income Statement
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.78
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 275.00M | 275.00M | 243.80M | 228.58M | 245.15M | 168.00M |
| Gross Profit | 105.80M | 105.80M | 85.90M | 66.10M | 59.83M | 58.50M |
| EBITDA | 30.90M | 30.90M | 8.00M | 24.70M | -2.27M | 23.00M |
| Net Income | 3.00M | 3.00M | -14.40M | ― | -25.28M | 7.00M |
Balance Sheet | ||||||
| Total Assets | 312.90M | 312.90M | 348.10M | 344.90M | 399.42M | 356.80M |
| Cash, Cash Equivalents and Short-Term Investments | 14.00M | 14.00M | 13.20M | 9.42M | 14.13M | 147.00M |
| Total Debt | 79.40M | 79.40M | 98.60M | 76.81M | 70.13M | 53.80M |
| Total Liabilities | 146.40M | 146.40M | 188.70M | 136.28M | 193.65M | 176.70M |
| Stockholders Equity | 166.50M | 166.50M | 159.40M | 208.63M | 205.77M | 180.10M |
Cash Flow | ||||||
| Free Cash Flow | 42.70M | 42.70M | -3.90M | 14.83M | -25.47M | -13.20M |
| Operating Cash Flow | 53.90M | 53.90M | 7.10M | 22.55M | 5.73M | 2.40M |
| Investing Cash Flow | -9.50M | -9.50M | -2.60M | -10.50M | -157.67M | 76.20M |
| Financing Cash Flow | -43.70M | -43.70M | -800.00K | -15.70M | -19.55M | 19.20M |
Avon Technologies Technical Analysis
Neutral
1836.00
Price Trends
1934.70
Negative
1988.80
Negative
1788.79
Positive
Market Momentum
-28.88
Positive
43.24
Neutral
42.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVON, the sentiment is Neutral. The current price of 1836 is below the 20-day moving average (MA) of 1864.30, below the 50-day MA of 1934.70, and above the 200-day MA of 1788.79, indicating a neutral trend. The MACD of -28.88 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 42.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | £272.23M | 18.45 | 25.95% | 1.46% | 7.23% | 26.46% | |
69 Neutral | £1.54B | 39.43 | 14.59% | 1.66% | 7.73% | 1209.76% | |
68 Neutral | £1.54B | ― | ― | 3.64% | ― | ― | |
66 Neutral | £570.89M | 112.60 | 6.27% | 0.97% | 10.74% | 237.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $47.41B | 24.68 | 17.59% | 2.07% | 11.60% | 8.03% | |
58 Neutral | £2.53B | -13.93 | ― | 2.03% | -4.59% | -256.51% |
* 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.