Avon Protection Share Discussion Threads

[mike740] 19/11/2014 12:31

AVON RUBBER BROKER VIEWS

Date Broker Recommendation Price Old target price New target price Notes

19 Nov WH Ireland Securities Buy 699.00 800.00 825.00 Retains
19 Nov Investec Buy 699.00 720.00 800.00 Retains
19 Nov N+1 Singer Buy 699.00 750.00 760.00 Reiterates

[mike740] 19/11/2014 09:46

AVON AVON RUBBER chart breakout on excelent results. Trades on a forward P/E of just over 15 to 2015.

[mike740] 19/11/2014 09:23

AVON...........Avon Rubber

On the verge of a breakout.

[mike740] 19/11/2014 09:21

Date Broker Recommendation Price Old target price New target price Notes

19 Nov WH Ireland Securities Buy 681.75 800.00 825.00 Retains
19 Nov Investec Buy 681.75 720.00 800.00 Retains
19 Nov N+1 Singer Buy 681.75 750.00 760.00 Reiterates

[mike740] 19/11/2014 08:47

19 Nov 2014 Avon Rubber PLC AVON WH Ireland Securities Buy 671.25 659.50 800.00 825.00 Retains

[mike740] 19/11/2014 08:45

Avon Rubber operating profits up

19 November 2014 | 07:45am
StockMarketWire.com - Avon Rubber's revenue for the year to the end of September was flat at £124.8m (2013: £124.9m) but increased 5% on a constant currency basis.

Operating profit before depreciation and amortisation (EBITDA) rose 14% to £22.9m (2013: £20.0m) and operating profit rose 20% to £17.0m (2013: £14.2m) (an increase of 26% at constant currency).

The progressive strengthening of sterling during the year gave the group a foreign exchange translation headwind. The US $/£ average rate was $1.65 (2013: $1.56) and this 9 cent headwind was equivalent to £5.7m at a revenue level and £0.8m at an operating profit level.

Chief executive Peter Slabbert said: "2014 has been an excellent year reflecting the strategic decisions made over the last three years to invest in innovative new products and technologies while expanding our international markets. This strategy will continue to drive growth in the years ahead."
- See more at: hxxp://www.stockmarketwire.com/article/4926141/Avon-Rubber-operating-profits-up.html#sthash.d5kADz82.dpuf

[mike740] 19/11/2014 08:27

19 Nov 2014 Avon Rubber PLC AVON Investec Buy 672.50 659.50 720.00 800.00 Retains

[18bt] 19/11/2014 08:25

Cash generation number stuck out for me. And profit would have been £.8m higher at constant currencies. It's had an excellent run, but no reason why it shouldn't continue.

[mike740] 19/11/2014 08:06

19 Nov 2014 Avon Rubber PLC AVON N+1 Singer Buy 0.00 659.50 750.00 760.00 Reiterates

[mike740] 19/11/2014 07:56

AVON

Beats consensus forecasts easily on adjusted pre tax and EPS.

[jakedog2] 19/11/2014 07:32

Excellant results

[cockneyrebel] 05/11/2014 18:40

I'm not talking about ebola - I'm talking about the general way the yanks panic by quarantining people unnecessarily. Will the government stock pile more bio masks in case of an 'event' in the future now? They've proved unprepared for ebola, will they want to be caught out again? What if it had been anthrax or smallpox?

CR

[jeffian] 05/11/2014 18:35

Not sure that's relevant. You can only catch ebola from contact with body fluids; you can't 'breathe it in'.

[cockneyrebel] 05/11/2014 14:53

Results in the next 10 days

Will the ebola crisis mean the US wand to stockpile more bio masks in the event of other diseases?

CR

[18bt] 03/10/2014 14:42

Edison update: Avon Rubber’s pre-close statement suggests our outperformance thesis continues to hold, with the group announcing that it expects results to be comfortably ahead of market forecasts. This has largely been driven by the receipt and delivery of a Middle Eastern Protection & Defence order, benefiting the mix and highlighting the strategic flexibility of the group. In addition, with Dairy ahead of last year driven by Cluster Exchange, the group continues to demonstrate that its multi-pronged strategy is paying off. With strong underlying operating cash conversion supplemented by accelerated payments from a major customer, the group is now in a net cash position, some two years ahead of our forecast.

They upgraded PBT forecasts 2014: £1m to £16.1m 2015 £0.5m to £17.2 and 2016 £0.6m to £18.3. New target 800p, with 945 incl incremental opportunities. 8-9% increase in EPS forecasts roughly = today's share price increase.

IMHO, momentum is with this one.

[jeffian] 03/10/2014 14:22

This used to be a high-dividend stock and that would be my preference. Yes, good update. The only fly in the ointment for me is that I thought it was looking expensive with a very low yield and sold a load in the 400-450 range. Doh! Still got some in my/wife's NISA's though but I try not to look back at what I could have had!

[18bt] 03/10/2014 07:24

What a cracking update - this really is truning into a quality stock. My only concern is whether the cash will burn a hole in their pocket - acquisitions need to be sensibly priced. ALternatively and better might be faster dividend increases.

[18bt] 07/8/2014 11:17

New Edison note fololowing IMS. Summary:
Avon Rubber's IMS has demonstrated that strong progress has continued since the half year, which has been enough to overcome a c £1m currency headwind for the full year, implying a stronger underlying performance than previously forecast.
As highlighted in our July 2014 note, we see significant future upside potential from a range of opportunities and the IMS highlights further progress against a number of these, specifically the Deltair SCBA and emergency escape breathing device (EEBD) programme. In addition, we note that if the strong cash conversion witnessed continues, full year net debt could outperform our current forecasts.

This is new:
The positive IMS leads us to maintain our short-term fair value of 760p/share, while the progress made with new products and services suggests at least a portion of our previously identified opportunities may come to fruition, leading to a potential fair value of 920p/share over the next 12-18 months.

[18bt] 06/8/2014 07:24

Strong IMS - impressive cash conversion. They could easily make acquisitions if they wanted to, but seem to be plenty of organic opportunities. Or go for a more substantial divi increase than the mkt expects.

[18bt] 06/6/2014 07:18

Nice DOD order underpinning market forecast. Plenty to go for for 2015.

[jeffian] 15/5/2014 15:01

Isn't most of the stuff made over there so cost/sale value all in $ and results only impacted by £/$ conversion for the accounts?

[cockneyrebel] 15/5/2014 14:53

A lot of US earnings - the strong £ must be hurting the co imo.

CR

[2breakout] 01/5/2014 16:27

very good that write up in Telegraph

Avon Rubber
627p+16
Questor says BUY
AVON rubber is changing the way it sells its products to customers and that is having a startling impact on profitability. The company reported a sharp increase in both profits and the dividend in its first-half numbers yesterday, making the shares well worth a look.
Avon Rubber manufactures gas masks and rubber items used by dairy farmers in the milking process. Yesterday, the company said it had experienced "strong growth during the first half of its financial year and that it expected further growth in the second half. Adjusted pre-tax profits increased by 45pc to £8.2m, while revenue for the same period only increased by 3pc.
That is because Avon is steadily taking control of its distribution network allowing it to charge retail prices rather than wholesale prices for its goods. The difference between the wholesale and retail price can be as much as 33pc. Analysts are currently expecting a 17pc increase in full-year pre-tax profit to £15.3m, but on these first half numbers that looks conservative.
Although defence budgets are under pressure worldwide, Avon is expecting a strong second half of gas mask sales. Order intake in Protection & Defence was up 15pc to £46m
The majority of the profit, or 83pc, comes from the provision of gas masks to defence clients. Avon is well placed as the sole US defence supplier locked into a 10-year contract, on which it is currently about midway. Avon said orders of its M50 gas mask provide revenue visibility well into the second half of the year.
The reported results for the six months were less impressive with pre-tax profits of £5.7m, only marginally ahead of £5.5m at the same stage last year. Avon took charges of £2.3m during the period, the majority of which relate to closing down old manufacturing facilities in the US. The company expects to make savings of £1m a year from next year following the closure.
Avon generated plenty of cash during the first half and this resulted in net debt falling sharply to £5.5m, from £9.9m a year ago.
The interim dividend was increased by 30pc to 1.87p, with the shares going ex-dividend August 7 and payable September 5. Although the full-year dividend only offers a forecast yield of 0.8pc, it is expected to increase by more than 20pc for each of the next two years.
The company is increasing profits and has a strong balance sheet so Questor upgrades the shares to a buy.