Avon Protection Share Discussion Threads

[p1nkfish] 24/5/2022 16:11

A new CEO will kitchen-sink this and write-off anything they can and spring clean so they have proper metrics to measure against going forward. Because of that I don't see anything other than more negative news some time hence.

Once cleaned it will be a decent buy but that may be from below the current £10 floor it has bounced off multiple times.

[jeffian] 24/5/2022 16:10

I was very much with you. As shareholders, do we all feel that we have had "value" returned to us? No, nor do I. The reality is that, as so often with buybacks, all that (real) 'surplus' cash which could have been returned via dividend or Return of Capital has now simply disappeared in a puff of smoke. I hate 'em.

[conwyrebel] 24/5/2022 14:50

I got slammed by some on here for criticising the share buy back as a hopelessly wasteful way to allocate the companies resources. No we see why.!

[ch1ck] 24/5/2022 14:34

If and it's a big if, we can land a heavy weight CEO the holes could be plugged and the the ship steered back on courseI'm glad I sold some last week I just wish it was more

[justiceforthemany] 24/5/2022 14:33

Balance sheet metrics have actually improved with debt to equity 0.88 and equity ratio 2.13
Current assets £130M vs current liabilities £48M

[ch1ck] 24/5/2022 14:32

I challenged the board on there decision to implement a share buyback program when they had debt at the last shareholders meeting.Now debt has ballooned, they don't have the cash for inventory and profits tank.The CFO LEFT THE SHIP he help sink and now the CEO has steered it on to the rocksInstitution gave them one last chance and the CEO had no choice, he had to go

[danvandan] 24/5/2022 13:37

I'd been kicking myself for not buying-in here last time it was at £10, but then this terrible set of results comes out and makes me thankful.

What I'm wondering though is when this downward trend ends. Is this the right moment to buy-in? I'm unsure. The fact that the ceo has been given his marching orders without anyone named to takeover shows a business in turmoil.

How have they managed to secure no big new contracts despite all the 'enquiries'? A once profitable business is now reporting losses. Debt is rising, even while the dividend remains the same, further depleting cash - this seems like a mistake. Interest rates are going up. Raw materials are going up. I agree with the posters predicting a 'kitchen-sinking' when a new ceo comes onboard. Ontop of all that, if the war in Ukraine actually ends, this will likely have a strong negative effect on the shareprice.

The wider market appears to be on the cusp of turning downwards due to rising interest rates, energy costs and general inflation and an imminent loss of consumer confidence.

I am tempted to sit on my hands for a few days.

[conwyrebel] 24/5/2022 11:57

Buy pick by peel hunt for Avon. Set a watchlist on stockomendation and you get instant stock pick/tip/recs alerts

[p1nkfish] 24/5/2022 09:54

Tested this level a few times, if it breaks it runs down.

[fuji99] 24/5/2022 08:59

"... we remain confident in a return to growth." - In other words, when there is no war and no demand for their helmets, the only product left on offer ... Any naive investors still left should brace themselves for profit warnings in series.

[fuji99] 24/5/2022 08:38

From bad to worse. Never seen such a disastrous company. Now they are becoming a lossy dog in the middle of a war. What will they be in peace time ? Pleased I was out since I was convinced this is heading to the abyss. Will do the opposite of prosperous companies: To be taken over for peanuts when its share price hits the floor. I won't be surprised to see it priced at £2 - £3 in the next 6 months.

[p1nkfish] 24/5/2022 08:36

Ferrugia, good point.
New CEO will paint a terrible picture on which to improve by hanging out all the dirty laundry of the past.

It's not over yet.

[justiceforthemany] 24/5/2022 08:29

Good riddance! He listened, finally.

[jw330] 24/5/2022 08:28

The only positive note is that the CEO has decided to leave. Maybe they'll find someone who is actually competent?

[farrugia] 24/5/2022 08:07

is this the third profit warning? the new CEO will probably have to do more 'cleaning' on the balance sheet when he comes in so he absolves himself of his predecessor's sins

[p1nkfish] 24/5/2022 08:05

A buyer will have the same problems of untangling this and the more tangled the lower the price. It being private and out of the sunlight might help speed up recovery though. A bit of PE tough love.

[pdwop] 24/5/2022 07:53

No blood. I'm sure he's a lovely bloke. I'll just be happy with accountability and efficient capital allocation. Not wealth destroying acquisitions!

[conwyrebel] 24/5/2022 07:44

The company will be sold soon then

[farrugia] 24/5/2022 07:43

I'm afraid carnage yes

[p1nkfish] 24/5/2022 07:35

Must have been substantial stress.

[pdwop] 24/5/2022 07:26

He has left carnage. Destroyed huge amounts of shareholder value. Shockingly poor performance. BOD equally complicit!Dread to think about size of final severance package... As always, asymmetric risk. Very little accountability. Should have been sacked a lot earlier!

[terminator101] 24/5/2022 07:15

Probably less. 50% down today IMO. Paul has certainly been transformational. Transformational in making loads of investors a lot poorer ;-(

[scepticalinvestor] 24/5/2022 07:13

800p open?

[rolloway] 30/4/2022 02:46

We're only two months into the war, but the UK has depleted its stocks of ant-tank weapons and is coordinating with suppliers for more; that must surely be the same for protective gear. Every country is gearing up for possible military action. Presumably the contract announcements will come soon.