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Avon Technologies
(LSE:AVON)
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Rating:60Neutral
Price Target:
1,896.00 p
▲(4.18% Upside)
Action:Reiterated
Date:08/26/26
The score is driven by an improving profitability and balance-sheet profile, reinforced by a positive earnings call with upbeat FY26 guidance and a strong order book. Offsetting this are weak/volatile cash-flow conversion and a high valuation (elevated P/E with modest yield), alongside only mixed technical momentum.
Positive Factors
Improving profitability and capital returns
The return to strong operating profitability and ROIC above target indicates improved execution, pricing or mix and better use of capital. Sustained returns provide a stronger base for reinvestment, debt management and shareholder distributions.
Negative Factors
Volatile cash-flow conversion
Uneven cash generation can constrain liquidity even when accounting profits improve. Working-capital swings, lumpy investment and delayed customer receipts may increase net debt or limit the company’s ability to consistently fund growth and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and capital returns
The return to strong operating profitability and ROIC above target indicates improved execution, pricing or mix and better use of capital. Sustained returns provide a stronger base for reinvestment, debt management and shareholder distributions.
Read all positive factors
Avon Technologies (AVON) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£545.35M
Dividend Yield1.01%
Average Volume (3M)100.38K
Price to Earnings (P/E)40.7
Beta (1Y)1.00
Revenue Growth4.62%
EPS Growth170.53%
CountryUK
Employees982
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.61
Shares Outstanding30,258,194
10 Day Avg. Volume69,111
30 Day Avg. Volume100,381
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
£2,320.00Price Target Upside27.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.19
Revenue Forecast (FY)£341.44M
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...
Avon Technologies Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 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
1820.00
Price Trends
1785.79
Positive
1739.41
Positive
1767.49
Positive
Market Momentum
6.25
Positive
51.92
Neutral
38.78
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 1820 is below the 20-day moving average (MA) of 1860.00, above the 50-day MA of 1785.79, and above the 200-day MA of 1767.49, indicating a neutral trend. The MACD of 6.25 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 38.78 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | £466.06M | 8.46 | 26.96% | 6.95% | 1.48% | -2.90% | |
74 Outperform | £594.88M | 16.72 | 30.23% | 3.32% | 0.53% | -8.91% | |
68 Neutral | £558.09M | 14.68 | 20.94% | 6.69% | -3.52% | -10.90% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £682.74M | 37.09 | 5.79% | 4.94% | -5.58% | -32.73% | |
60 Neutral | £545.35M | 40.68 | 10.50% | 1.01% | 4.62% | 170.53% | |
48 Neutral | £857.87M | -16.72 | -39.26% | ― | -37.09% | -67.49% |
* Industrials Sector Average
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Avon Technologies Corporate Events
Business Operations and StrategyDividends
Avon Technologies Sets Sterling Value for Interim Dividend Payout
Positive
Aug 13, 2026
Avon Technologies plc has confirmed the sterling value of its previously announced interim dividend of 8.1 U.S. cents per share, setting the applicable GBP/USD exchange rate at 1.3525. Based on this rate, eligible shareholders will receive an inte...
Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Buy Shares Under Company Incentive Plan
Positive
Aug 6, 2026
Avon Technologies has reported purchases of its ordinary shares by Chief Executive Officer Jos Sclater and Chief Financial Officer Rich Cashin under the company’s HMRC-approved Share Incentive Plan. The all-employee scheme, which allows staf...
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Avon Technologies Wins $12m European NATO Order for Next-Gen CBRN Respiratory Upgrade
Positive
Aug 5, 2026
Avon Technologies’ Avon Protection unit has secured a new $12 million order from an existing European NATO customer for upgraded CBRN respiratory protective equipment, including the FM53 air purifying respirator, CS-PAPR powered system and S...
Business Operations and StrategyFinancial Disclosures
Avon Technologies Wins $20.1 Million Follow-On U.S. Combat Helmet Order
Positive
Jul 29, 2026
Avon Technologies plc, a specialist in protective equipment for military and law enforcement, serves more than 4 million users in over 70 markets with advanced respiratory, integrated protective systems and high-performance helmet solutions. The G...
Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Buy Shares Under All-Employee Incentive Plan
Positive
Jul 7, 2026
Avon Technologies plc has disclosed that its chief executive officer, Jos Sclater, and chief financial officer, Rich Cashin, acquired small volumes of ordinary shares under the company’s approved Share Incentive Plan. The plan allows employe...
Business Operations and StrategyFinancial Disclosures
Avon Technologies Wins $10.8m NATO Respirator Contract, Bolstering CBRN Modernisation
Positive
Jul 6, 2026
Avon Technologies’ Avon Protection unit has secured a $10.8 million order from an existing European NATO nation under the NATO Support Procurement Agency framework, supplying FM50 twin-filter air purifying respirators, FM61EU filters and re...
Business Operations and Strategy
Avon Technologies Secures Over $40 Million in U.S. Army Helmet Orders
Positive
Jun 26, 2026
Avon Technologies, a defence-focused supplier of protective equipment for military and law enforcement, delivers advanced respiratory systems and helmet solutions through its Avon Protection and Team Wendy units. Its products are widely used by se...
Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Buy Shares Under All-Employee Incentive Plan
Positive
Jun 8, 2026
Avon Technologies plc disclosed that its chief executive officer, Jos Sclater, and chief financial officer, Rich Cashin, acquired small numbers of ordinary shares under the group’s HMRC-approved all-employee Share Incentive Plan. The transac...
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.