Avon Technologies - Finals next Tuesday will outline its prospects for greater sales and profits, shares 2335p, new SQC TP of 2500p
Mark Watson-Mitchell - 06.11.2026
Next Tuesday, 10th November, the £686m-capitalised protection equipment group Avon Technologies (LON:AVON) will announce its 2026 Final Results to end-September.
The group has seen strong momentum in recent months, with its Order Book rising significantly since the half-year results.
That has been reflected in a strengthening share price, having hit 2620p earlier this week, before easing back to 2275p, then picking back up to the current 2335p.
The Business
Avon Technologies is a Military and Law Enforcement protective equipment specialist.
Its products are trusted to protect over 4m service personnel and first responders in over 70 markets around the world.
Driven by a culture of continuous improvement, it empowers every individual in its organisation to identify opportunities and implement meaningful change.
This commitment fuels its innovation and ensures that it is constantly advancing its mission: to provide unparalleled protection for those who protect us.
Its business is structured around two Strategic Business Units:
Avon Protection: A leading provider of advanced respiratory and integrated protective systems.
Team Wendy: A specialist in high-performance ballistic and impact protection helmet systems.
Trading Update
On Wednesday 7th October the group issued a Trading Update for the year to end- September, stating that it is expecting results to be ahead of market expectations with revenue growth of approximately 12.5% and adjusted operating profit margins comfortably above the guided 14-16% range.
The Group's new "Improve. Grow. Compound." strategy aims for annual revenue growth exceeding 5% CAGR, adjusted operating margins of 16-18%, and EPS growth over 10%, with projected free cash flow exceeding $175m over three years.
Five-year targets include revenue over $600m and ROIC over 18%, while year-end net debt is expected to be around $34m, representing leverage below 0.5x.
Management Comment
CEO Jos Sclater stated that:
“Over the past three years, Avon has transformed its operational and financial performance, delivered on its commitments and established a repeatable Business Improvement System.
Avon Protection and Team Wendy now provide a strong platform for sustainable growth and increasing cash generation.
The next phase of our strategy is: Improve. Grow. Compound.
We will continue to improve our businesses through our Business Improvement System, creating the cash, capacity and leadership capability to support growth.
We will invest behind our leading market positions, strong customer relationships and the step-change opportunities where we have a clear right to win.
Together, these initiatives provide a compelling organic growth plan and underpin our confidence in Avon’s prospects.
Over time, we also see an opportunity to create additional shareholder value by selectively acquiring, improving and growing protection technology businesses where Avon has a genuine ownership advantage.
Combined with disciplined capital allocation, we believe this provides a repeatable model to compound shareholder value over the long term.”
The Equity
There are some 31.02m shares in issue.
The larger holders include Alantra EQMC Asset Management (13.98%), Ancora Alternatives (4.97%), Aberforth Partners (4.68%), Schroder Investment Management (4.57%), Aberdeen Investment Management (4.49%), BlackRock Investment Management (4.21%), Royal London Asset Management (4.17%), Franklin Templeton Fund Management (4.16%), FIL Investment Advisors (UK) (3.91%), and Evenlode Investment Management (3.66%).
Broker Views
There are seven firms closely following the group, five of whom rate the shares as a Buy, while the other two say Hold.
Deutsche Bank call the shares a Buy, with a Target Price of 2480p, while Jefferies also has a Buy with a 2390p TP, Singer Capital Markets has a recently increased 2500p Target Price.
At Singers, analysts Henry Carver and Caroline de La Soujeole are awaiting next week's results statement to justify any further re-rating in the group's shares, based upon increased sales and prospective profits showing through.
For the year to end-September, estimates are around $353.7m ($313.9m), with adjusted pre-tax profits of $55.6m ($34.2m), earnings of 138.7c (85.5c) and a dividend of 33.50c (24.60c) per share.
The current year could see $371.4m sales, $60.6m profits, 151.0c earnings and a 37.60c dividend.
The year to end-September 2028, the analysts suggest, could see $390.0m sales, $66.7m profits, 166.3c earnings and a 42.60c dividend.
My View
What a performer!
And there is still so much more to come yet.
There are likely to be some chunky price moves around next week's results, so if they fall out of bed, albeit temporarily, then patient investors should take an immediate positive view on this group's ongoing growth.
(Profile 10.04.25 @ 1385p set a Target Price of 1730p*)
(Profile 21.05.25 @ 1702p set a Target Price of 2125p*)
(Profile 07.10.26 @ 1905p set a Target Price of 2100p*)
(Profile 06.11.26 @ 2335p set a Target Price of 2500p)
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