Avon Protection Share Discussion Threads

[chester] 11/1/2011 10:02

Looking good.

[hannabella] 10/1/2011 14:18

Indeed! If we can get through 220

[nurdin] 10/1/2011 13:33

On verge of a major breakout here imo

[hannabella] 06/1/2011 21:08

Took a position here this morning early on the breakout

[bluebelle] 06/1/2011 16:30

I like stocks which glow bright blue on red days !

[chester] 06/1/2011 09:06

I've bought in this morning. Looks a good place to buy on the chart imo.

[jeffian] 15/12/2010 10:20

LOL! Yes, I used to be a commercial property developer and we always prayed our buildings wouldn't win architectural awards. Kiss of Death!

[bluebelle] 15/12/2010 09:47

In general, I don't like to see companies I hold shares in, winning awards : much rather they just got their heads down and got on with the day job. Winning the Queen's Award for Industry was always a screaming sell signal !!!

[cockneyrebel] 14/12/2010 19:13

Doesn't tell you that much in that video does it? I think the old bird just wanted to dress up in that rubber suit to pose in a video - frustrated porn star perhaps?

CR

[cockneyrebel] 11/12/2010 15:45

Tipped in SCSW again - shame they only use Arden's forecasts tho which are not based on the adjusted eps they refer to in the results just released at 21.9p

Edison who quote that 21.9p adjusted eps for the year gone are forecasting 27p eps this year and 31p next year.

That's a PE of 7.7 this year and 6.7 next year.

CR

[cockneyrebel] 11/12/2010 10:45

Avon Rubber wins turnaround award.

Can't get the full story - dunno if anyone else can?

CR

[jeffian] 02/12/2010 20:04

It does seem odd that when a British company spends years developing a world-beating product which is apparently good enough for the mightiest military power in the world, and for which there is clearly a crying demand given the sort of conflicts we face these days, that "the UK MoD appear to remain committed to changing to an alternative product and supplier from 2012". How very British!

[bluebelle] 02/12/2010 19:56

Many thanks.

[penpont] 02/12/2010 19:54

The IC coverage of the results on 24 Nov stated:

'Admittedly, Avon's gas mask contract with the UK's Ministry of Defence will end next year, but that should be offset by significant orders from Italy, Canada and Saudi Arabia.'

[jeffian] 02/12/2010 19:22

From the 2008 accounts:

" The award of the 5 year, $112m US Government production contract for the M50 respirator, together with their exercise of the 'requirements' option under this contract which allows for total quantities of up to 300,000 mask systems per year for a period of up to 10 years, were major achievements for the Group."

"Our Cadillac facility was successful in obtaining a single source $112m full rate production ('FRP') order from the US Department of Defence ('DoD') for the M50 military respirator representing 100,000 mask systems p.a. for a 5 year period. The DoD also exercised its 'requirements' option to extend the order for a further 5 years, allowing it to take up to a further 200,000 mask systems per annum, resulting in total quantities of up to 300,000 mask systems per annum over a period of up to 10 years. "

RNS 1/4/09
"Avon announces the placement of a further contract by the UK MoD for the UK military's in-service respirator, the S10. The Company has now been the sole supplier of the S10 to UK forces for over two decades and the recently awarded contract demonstrates the MoD's continuing trust in Avon's product. The contract is worth £4.49 million but has the potential to exceed £10 million over three years. "

RNS 15/9/09
"NEW CONTRACT SUCCESS FOR AVON

Avon has received a new 5 year contract award from the US Department of Defense (DoD) for the M53 Protective Mask. The M53 system is a new derivative of the M50 respirator and provides capability for use with all recognised forms of Personal Protection Equipment (PPE). The initial order under this contract is for $3.7m with an overall potential of $43.4m. "

Maybe you were thinking of the UK contract following this in IMS 11/5/10

"In the UK, the MoD exercised the second year of its three year contract for S10 masks worth £3.0m. In addition an incremental delivery of £1.3m was made to support operational requirements. We also celebrated the one millionth S10 mask delivery to the MoD with no recorded quality problems and an excellent on time delivery record. Despite this track record and the availability of the world leading replacement product in the 50 series respirator, the UK MoD appear to remain committed to changing to an alternative product and supplier from 2012."

[cockneyrebel] 02/12/2010 18:23

I added a few FENR too, and a few AVON.

CR

[bluebelle] 02/12/2010 18:17

Thanks CR. I went through the annual report earlier but haven't found anything since then so am prepared to take this Chairman & CEO's comments at face value. See that you're in Fenner also : FWIW I added to that (and OXIG) today !

[cockneyrebel] 02/12/2010 17:59

This is what they say in the results Bluebelle:

"SEGMENTAL PERFORMANCE
Protection & Defence The Protection & Defence business has seen revenues grow 18.5% from GBP76.1m to GBP90.2m. Operating profit grew by 46% to GBP6.5m (2009: GBP4.5m) and EBITDAE was GBP10.4m (2009: GBP7.9m), representing a return on sales (as defined above) of 11.5% (2009: 10.4%). Demand has remained stable on our long term sole source respirator contract with the US Department of Defense (DoD) and despite downward pressure on military budgets generally we expect spend on Personal Protective Equipment (PPE) for the warfighter to remain stable. The consumable revenue stream associated with the supply of mask systems is growing as the logistics supply chain is stocked to support the issue of the new mask and we have successfully commissioned new filter manufacturing capacity to meet this. The DoD have indicated that the filter spares business will be opened to competition in future although the likelihood is that a second source of supply is still 1 to 2 years away. Avon will continue to supply the filters that are included with the mask system on a sole source basis. Expansion of our range of filters, including the capacity to manufacture legacy filters previously bought in, to fill any shortfall that this may cause is one of our development priorities in 2011.
UK Ministry of Defence (MoD) demand has held up but with the much delayed replacement GSR mask programme now approved, 2011 will, as expected, be the last year of supply for Avon's S10 mask. Growth in global demand for our new 50 series products is expected to offset this. Growth outside our core DoD and MoD customer base has been strong. Significant order wins from customers in Italy, Canada and Saudi Arabia announced at the half year have been augmented by further orders from Saudi Arabia and our first foreign military sale through the US DoD, both of which are for delivery in 2011 and should lead to an improved sales mix. We have also seen increased momentum in the homeland security market in the USA and have converted several lower value but strategically important new customers in markets around the world to Avon products which will drive further revenue growth. "

I don't know about the US contract ending, only what they say about the filters being open to competition in a couple of years.

CR

[bluebelle] 02/12/2010 17:24

CR
Interested in this but read somewhere that there were doubts about the continuation of the US DoD contract. Do you know anything about that and, if so, is it priced in. Low yield but the other metrics are very attractive IMHO.

[cockneyrebel] 27/11/2010 11:05

Yep - the statement saying they were ahead forced me to buy back really - anyway, glad I did and like you say, it's tough sometimes on a strong rally to think the market has priced everything in.

The Edison note has the eps way over that of the previous forecasts from other brokers - 10p higher @ 27p. I suspect the market hasn't fully picked up on that. Still on a PE of just 7.5 for some rather tasty growth imo.

CR

[jab118] 26/11/2010 20:46

Something I have done more than once myself I would admit that, and one of the hardest of decisions to make in any investment to do, I find..

Well done for your second entry anyway. ;-)

[cockneyrebel] 26/11/2010 12:30

152p I took profits at jab118, bought back @ 163p. Reading the Edison note conviced me they could go a lot higher - still, better to realise your mistake early and correct it ay? :-)

CR