Avon Technologies – Interims show excellent growth in order book, revenue, operating profit and earnings per share – shares up 9% at 1,702p

21.05.2025

This morning’s Interim Results announcement from Avon Technologies (LON:AVON) reported a 16.8% increase in group revenues to $148.7m ($127.1m), while pushing its adjusted pre-tax profits up an impressive 70.1% to $14.8m ($8.8m), with its earnings 76.4% higher at 38.8c (22.3c) per share, with only a small 5.6% increase in its interim dividend to 7.6c (7.2c).

The £528m-capitalised group is a world leader in protective equipment, trusted to protect the world's militaries and first responders, with a reputation for innovative design, high quality, and specialist materials expertise.

In the defence sector, the helmets and breathing apparatus maker impressed with its interim report that showed orders from the US and Ukrainian armies.

Its Order Book at the end of March was 24.0% better at $247.0m ($199.0m), while its group net debt was fractionally lower at $74.7m ($76.5m).

Management Comment

CEO Jos Sclater stated that:

"Our strategy is delivering and we remain confident that our approach to improving businesses creates value.

This is illustrated by our strong order book and our revenue and profit growth in the first half.

We remain resolute in pursuing our strategy and improving our businesses, notwithstanding an increasingly uncertain macro-economic and geopolitical environment.

The pace of change in Avon Technologies is accelerating and we continue to build our people's capability to enable this to happen.

 The next six months are important to us.

While we still have a lot to do, we are optimistic that we will achieve our margin target a year early in 2026."

The Business

For Armies, Navies, Law Enforcement and First Responders, Avon is the leading provider of mission-critical personal protection, with its world-leading respiratory and head protection portfolios.

With over 900 employees, the group which is based at Melksham in Wiltshire, has six sites across North America and the UK, the supplying its products to customers in over 70 countries globally.

The group is split into two main divisions – Avon Protection, and Team Wendy.

Avon Protection, with sites in Michigan in the US and in Wiltshire and Dorset in the UK, has an extensive history of providing respiratory protection and a comprehensive knowledge of its customers' requirements for respirators, powered and supplied air systems, filters, spares and accessories, as well as underwater systems and CBRN protective wear.

Recent orders from the UK Ministry of Defence, UK Police, the US Department of Defense, NATO, Swedish Police, the Australian Defence Force and those in Germany and New Zealand.

Team Wendy, with its sites in California, New Hampshire and Cleveland in the US, has a deep understanding of traumatic brain injury, which enables it to design next-generation ballistic and bump protection helmets, as well as helmet liner and retention systems.

Recent orders from the US Army, US DOD, the US Navy, and the US Air Force, as well defence departments in Australia.

The Equity

There are 31,023,292 shares in issue, some 83% of which are held by institutional investors.

The larger holders include Alantra EQMC Asset Management (18.12%), Aberdeen Investment Management (5.06%), Ancora Alternatives (4.97%), Schroder Investment Management (4.69%), Royal London Asset Management (3.83%), NFU Mutual Investment Services (3.57%), Aberforth Partners (3.52%), Invesco Asset Management (3.03%), Norges Bank Investment Management (2.83%) and Van Lanschot Kempen Investment Management (2.50%).

Analyst Views

There are six analysts following the group, two of whom rate the shares as a Buy, while four suggest that they are a Hold.

The consensus average Target Price for the group’s shares is 1,622p, the lowest 1,440p and the highest 1,800p.

In My View

Even though this group's shares have risen from 1,385p, when I last featured the company, on Thursday 10th April this year,

a useful near 23% advance in price in just six weeks, I remain bullish about its prospects.

I take the view that this group’s shares could well have a lot further to climb from the current 1,702p, up some 140p on the news, a clear 9% higher on the day, so far.