Avon Protection Share Discussion Threads

[robow] 08/10/2019 15:52

any chance you can post it or summarise?

[9degrees] 08/10/2019 14:23

ggod write up in Times today

[hawaly] 16/9/2019 07:31

Avon Rubber PLC - Pre-close trading update
Announcement: Mon 16th September, 2019 7:00am
RNS Number : 3474M
Avon Rubber PLC
16 September 2019

16 September 2019

Avon Rubber p.l.c.

Pre-close trading update

On track to deliver strong results in a transformational year

Avon Rubber p.l.c. today issues the following trading update ahead of its year end close on 30 September 2019.



The Board is pleased to report that trading in the second half has continued in line with its expectations, as outlined in the Half Year results announcement on 1 May 2019. The Board therefore remains confident of achieving its revenue and adjusted profit before tax expectations for the full year.



As indicated at the half year, revenues are expected to grow by circa 4% on a constant currency basis with the adjusted EBITDA margin modestly ahead of last year. At current exchange rates, revenues will also benefit from a further tailwind of around 4%.



Avon Protection



Avon Protection has enjoyed a strong year, underpinned by the performance of our Military business. As expected, we have completed the planned initial deliveries of the M69 aircrew mask and the M53A1 mask and powered air system to the U.S. Department of Defense. We have also completed the $16.6m Rest of World Military mask system contract announced in April 2019.



Law Enforcement performance has been stronger in the second half of the year. However, as anticipated, the impact of delays resulting from the extended U.S. Government partial shutdown in the first half of the year will result in a year on year revenue decline against a strong prior year comparator.



Fire performance in the second half has been further impacted by continued delays in the NFPA industry-wide approval process for the new safety standard, which has prevented the launch of our upgraded Magnum SCBA. We now expect to launch Magnum in the first half of our 2020 financial year.



milkrite | InterPuls



The improved global dairy market conditions experienced in the second quarter have continued in the second half resulting in improved trading conditions. This has resulted, as expected, in milkrite | InterPuls returning to revenue growth in the second half across all business lines.



Taxation



Following the successful resolution of a number of prior year uncertain tax positions we anticipate the adjusted effective rate of tax for the full year to be around 11%, as a result of a non-cash provision release.



Financial position



The Group's balance sheet remains strong and the business continues to be highly cash generative. Cash conversion for the year and the resulting year end cash position will be impacted by the timing of cash receipts in respect of the $16.6m Rest of World Military mask system contract, which given the timing of shipping goods we now expect to receive in the next financial year, and around £2m of costs incurred relating to the acquisition of 3M's ballistic protection business.



Acquisition of 3M's ballistic protection business



The U.S. regulatory approval process to acquire 3M's ballistic protection business is ongoing, with U.S. anti-trust clearance successfully completed. We continue to expect the acquisition to complete in the first half of our 2020 financial year once all regulatory approvals have been received.



Commenting, Paul McDonald, Chief Executive Officer, said:



"We are on track to deliver a strong set of results in what has been a transformational year for Avon Rubber.



The U.S. DOD contract awards, totalling $340m, for the M53A1 and M69 mask systems and the acquisition of 3M's Ballistic Protection business have significantly strengthened our medium-term outlook.



This leaves us well positioned to deliver further growth, both organic and M&A, in 2020 and beyond."



Notice of results



Full year results for the year ended 30 September 2019 will be announced on 13 November 2019.

[18bt] 23/8/2019 16:00

And it keeps on going .....

[robow] 22/8/2019 15:39

Nice fulk page write up in Shares magaine today.

Body armour deal sparks value creation excitment for Avon Rubber

[jeffian] 20/8/2019 20:17

Crikey! Well that's definitely a 're-rating'!

[18bt] 19/8/2019 19:14

Happy to say that this share is now a 10 bagger for me - on original purchase in Feb 2003! Not quite yet on my further purchase in July 2004. Went through. Some hairy times before success....

[philanderer] 19/8/2019 18:39

Analysts at Berenberg raised their target price on respiratory protection equipment maker Avon Rubber from 1,650p to 1,800p on Monday, stating that its acquisition of 3M's ballistic-protection business and rights to the Ceradyne brand had been the deal it was "waiting for".

full:

[scooper72] 07/8/2019 18:00

The one bit of blue in lots of red this week on my HL accounts- let's hope it holds up well

[18bt] 07/8/2019 17:59

Amazed no comment on here given the rise! I know it's August and everything else apart from gold and bonds are shot to bits .... but

[robow] 07/8/2019 13:08

heading for a breakout now

[robow] 07/8/2019 08:18

thanks 18BT

[18bt] 07/8/2019 08:15

Points from webcast:
58% helmets. 33% body armour, remainder flat armour (i.e. protection for aircarft seating)
One of 3 companies to have body armour contract.
Additional visibility of rvenues for group
Significant opportunity in RoW whch AVON can grow
Enhanced R&D capability to capitalise on market opportunity
Flat armour, potnetial for aircrew respirator synergies
Next gen helmet production expected to ramp up providing revenue growth
They are clearly v excited about the opportunity and it looks like the market is as well.

[18bt] 07/8/2019 07:57

AVON doesn't seem to be buying 3M's safety goggle technology or helmet communications; it will be interesting to see whether there is a long term collaboration agreement with 3M. But 3M is also a competitor in respitatory protection.

[robow] 07/8/2019 07:46

indeed it does but why the drop yesterday

[18bt] 07/8/2019 07:43

This looks like a cracking acquisition. 8.4x EBITDA before synergies (compared to 10.6x for AVON), major brand, decent size and easy to see the fit. Will be listening to the analysts call with interest. They were forecast to have over £60m of cash at the year end, so this shouldn't stretch the balance sheet too much. The only downside is that this might take the business even further from the ESG crowd, but I'm afraid that's just life given all the hotspots of tension in the world.

[18bt] 02/5/2019 12:06

Decent buy on the dip from an NED

[hawaly] 01/5/2019 08:37

It'll be something to do with all those brackets.....

[devonwood] 01/5/2019 08:36

How can a record order book and increased dividend amount to bad news?

[ch1ck] 01/5/2019 08:33

Bad news back to 1200

[mwainw1973] 30/4/2019 15:24

What are we expecting tomorrow?

[18bt] 26/3/2019 10:15

I'd favour a special dividend and consolidation as its in my ISA. They will however be concerned that c£60m of special off a market cap of £386m will reduce liquidity. Cash per share will be about 195p by year end. So the cash adjusted PER is around 14.5x and they should keep churning out cash as most of EPS converts into FCFPS.

[18bt] 26/3/2019 07:30

Another cracking long term contract. My only concern is what they do with the cash pile.

[tim1478] 31/1/2019 18:31

Thank you. I should have checked more carefully