Avon Protection Share Discussion Threads

[18bt] 07/3/2014 18:38

Comment from Edison on consolidation of US facilities:

Avon's announcement that it will consolidate its Lawrenceville, GA Protection &
Defence facility into its other locations makes sense in our view.

With the Lawrenceville lease due to expire in June 2015 and further investment or relocation already required at the site, the decision to consolidate operations and benefit from investment already undertaken elsewhere affords Avon the possibility to generate future savings.

The £2m cost of relocation will be taken as an exceptional in 2014, while benefits should begin to accrue throughout the subsequent years. While we aare not adjusting our forecasts, there is potential for cost savings to improve
profitability in our outer years.

As a further benefit , the consolidation provides an opportunity to improve customer service and flex ibility.

[18bt] 06/2/2014 10:16

New note out from Edison on back of today's IMS

Avon Rubber's Q1 IMS highlighted that dynamics across the group remain 6 February 2014
positive with both US Department of Defense (DoD) and non-DoD order
support and Dairy starting to improve as feed prices decrease. One area
that has remained slower has been the fire market as NIOSH approvals
have been pushed to the right across the industry, delaying revenue from
the group's new Deltair SCBA. With net debt also down (due to working
capital movements) we still believe 2014 will show further progress from
Project Fusion and a recovering dairy market.

That said, I've topped sliced these as a PER of 17x and little yield support looks a tad expensive and, in the absence of contract news, I think these will mark time at best. Will look to buy in closer to £6

[23retired] 03/2/2014 17:56

Still in here... glad I didn't get too greedy/too hasty!

[dasv] 11/12/2013 15:36

Nplus1 Brewin began coverage on shares of Avon Rubber plc (LON:AVON) in a research note issued to investors on Tuesday, Analyst Ratings.Net reports. The firm issued a buy rating and a GBX 682 ($11.15) price target on the stock.

[18bt] 22/11/2013 18:30

Upgrade from Edison post results. Summary is:

Avon Rubber's prelims have clearly demonstrated that the strategy pursued by the group is yet again delivering upgrades to forecasts. Core DoD work continues to be funded and the strategy to diversify into non-DoD markets is supported by the product development pipeline. The dairy market has provided a headwind during FY13, but, despite this, Avon has delivered ahead of our forecasts and has the potential to accelerate earnings as more products are introduced and the portfolio effect of international business reduces volatility. We are therefore upgrading FY14 PBT and EPS forecasts by 3% and 4% respectively and we initiate our
FY15 forecasts with a further 9% EPS growth.

[18bt] 21/11/2013 07:41

These are beginning to look expensive in the absence of some increased forecast. That said, I'd expect some increase in forecast for 2014 on the back of these and more stabs at 2015. Waiting for a new Edison report.

[gargoyle2] 20/11/2013 09:49

I don't hold here, but was impressed by those results. I guess they must have been factored in, judging by the lack of share price movement today.

[dasv] 20/11/2013 07:44

Financial highlights:
§ Successful delivery against growth strategy

§ EBITDA growth of 22% to £20.0m

§ Operating profit growth of 22% to £14.2m

§ Operating margins improved by 0.5% to 11.4%

§ Profit before tax up 27% to £14.0m

§ Diluted earnings per share up 34% to 34.0p

§ Dividend increase of 20% to 4.32p reflecting business growth and confidence

§ Cash generated from operating activities of £15.3m, representing 114% of operating profit



Operational highlights:

§ In Protection & Defence, increased non-DOD order intake

§ Award of $6.7m DOD JSAM design, development and testing contract

§ Market share of newly introduced ImpulseAir (mouthpiece vented liner) reached 19% in the US

§ Investment of £6.4m in new products and new markets

[cheaky monkey] 25/10/2013 07:35

Following the acquisition of the business and assets of VR Technology Holdings ("VR"), a market leader in diving rebreather systems and dive computers, in April 2013, Avon is pleased to announce the award of two development contracts:--- A contract award with Defence Science and Technology Laboratory (DSTL), which develop new technologies for the UK MoD, for diving rebreather design work.-- A contract award with Oceaneering, a large oil field services and products company, for a new generation of advanced deep-water data loggers.Commenting, Peter Slabbert, Avon's Chief Executive said 'We acquired VR to broaden our reach in the global respiratory protection market. These contracts together with our own R&D investment in innovative new diving technologies and products will provide increased opportunities for the Group, in particular with navies around the world.'Another great contract win, well done Avon.

[dasv] 15/10/2013 14:07

18BT - I was away for 3 weeks. Still hold AVON.

[18bt] 05/10/2013 11:41

Latest Edison note:

Avon Rubber's pre-close statement and full-year upgrade to forecasts highlights the growing momentum in non DoD sales, a key part of the strategy.
With strong Q4 orders and a quick delivery turnaround, Avon has outperformed forecasts heading into the year end and we are therefore up grading our FY13
PBT and EPS forecasts by 5% and 4% respectively.

Given the lumpy nature of such orders, we are broadly maintaining our FY14 numbers at this stage, although we do highlight that recent contract announcements such as the 52,000 C50 respirators and MILC F50 filter order for the Middle East support our current growth forecasts for Protection & Defence,
and any further orders should lead to upgrades

[18bt] 01/10/2013 11:54

Surprised no comment on here about the great IMS yesterday. Haven't seen any revised forecasts. Share price up from 300p a year ago - rating now appropriate, but still room for share price growth if the profits keep on being revised upwards imho.

[meijiman] 09/9/2013 15:34

I think you will find that there have been some very decent orders from the M. East. But for commercial reasons and sensitivity the company choses not to name buyers/countries. Can't blame them in all honesty.

[18bt] 06/9/2013 07:17

Building momentum for 2014 with a decent Middle East order. With current situtation, you'd think that this would be fertile ground and I can see the shares still going higher. Hoping for some small upgrades for next year.

[phoenix1234] 16/8/2013 12:42

Avon Rubber IMS – at 489p worth 510p: Edison

[18bt] 09/8/2013 18:09

New Edison report at hxxp://www.edisoninvestmentresearch.com/researchreports/avonrubber050813update.pdf
Forecasts not altered yet pending IMS, but points out potential of this deal

[18bt] 06/8/2013 14:24

It seems to have cottoned on now. I'm increasingly impressed with the management team here - the stock is now justifiably back on a growth rating.

[dasv] 05/8/2013 16:01

New high? Market slow to cotton-on to this deal today imo.

[dasv] 05/8/2013 08:05

sorry don't know re: cazenove - restatement of holding probably due to takeover by of cazenove by Schroders.
--

Very chunky contract win announced today - confirming AVON as respirator provider to US department of defense:-




"The contract award for the MM53 type 2, as it will be known, is $6.7m. This initial 2 year pre production contract covers the development, testing and user trials of the new mask system and the provision of logistical support. There is potential for follow on production contract awards of up to $74m."

[napoleon 14th] 05/7/2013 21:32

Who are they acting for?

[dasv] 04/7/2013 11:50

cazenove increase their position to a whopping 27%