Avon Technologies - Trading Update shows Finals to be ahead of expectations, new SQC TP

Mark Watson-Mitchell - 07.10.2026

Ahead of a Capital Markets Event in the shape of an investor strategy teach-in being held today, Avon Technologies (LON:AVON) has provided a Trading Update for the year to end-September.

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 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.

My View

This £576m-capitalised group's shares at 1905p continue to hold strong investor attractions.

My new Target Price is set at 2100p,

(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 @ 1903p set a Target Price of 2100p)