Avon Technologies Share Discussion Threads

[redips2] 09/6/2021 14:00

T’wud be nice.

[fuji99] 09/6/2021 07:41

We should see a bounce from here as we reached resistance levels.

[jeffian] 08/6/2021 18:18

That's exactly what I thought when they reached a PER of 28 and I sold some at 450p!

[mr euro] 08/6/2021 16:29

Been a watcher for a long time, can't bring myself to buy at this valuation. However you slice it, they are VERY VERY expensive (this isn't SAAS). I want to get in and may even buy on TA but I cant see how they are a buy on fundamentals at these levels.

[r2oo] 08/6/2021 15:40

In my opinion this is just another good buying opportunity.Just think where the share price and dividend on cost will be in 10 years time.

[fuji99] 08/6/2021 08:45

Good luck Dare. I think they reached the bottom in term of delivery this year. From here I can only see improvements flagged up which, with time, will propel the share price to previous highs. AVON has a unique niche market in the US and the UK in particular.
I would add something that was maybe missed but could positively affect their numbers is their debt. It was reduced from 91 million to 44 million. This is a positive move proving they will be debt free next year.

[dare2share] 08/6/2021 07:39

I sold out this morning at a small loss. Looking through the numbers whilst there are some impressive elements in there such as revenue and dividend growth, not convinced there is enough profit to justify such a high market cap. Will monitor

[fuji99] 08/6/2021 07:16

The message from their results is of total confidence and I think they will beat expectations this time. Thus why I bought for holding. Getting a dividend is not bad too.
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"We are making good progress to resolve the delays in product approval for our body armor programmes and remain on track to commence shipments in the first half of our 2022 financial year.

Given the $157m order book and strong pipeline of opportunities across our personal protection portfolio, we are confident of delivering full year expectations and remain excited by the medium-term prospects."

[bingaxu] 07/6/2021 23:20

Sharecast News) - Analysts at Berenberg slashed their target price on personal protection systems manufactureer Avon Rubber from 3,335.0p to 2,955.0p on Thursday, stating the group was now entering "a testing period".While Berenberg said it maintains its view that Avon Rubber is "a high-quality business with attractive medium-term opportunities", it also added that the company's interim results provided it with "few reasons" to change its "more cautious stance", with Avon remaining one of its "least preferred names for 2021".The German bank pointed out that a 65% second-half underlying earnings weighting was required to deliver full-year guidance, meaning that any further issues with the group's body armour contract could "meaningfully affect" 2022 estimates."The next major test for Avon will be in the coming months as it embarks on the next testing phase of its body armour contract. We are encouraged by the comments that a thorough review has been conducted following the testing failures announced last December with revised product designs to address the issue now finalised; however, we seek certainty that the upcoming tests are successful," said Berenberg."Any further challenges could result in a 10-15% cut to our 2022 estimates, which would likely also culminate in a derating of the stock."Berenberg also highlighted that a change of chief financial officer and deputy CFO had already disrupted the usual continuity."Shares have fallen 33% from highs to better reflect the near-term risks, but we require greater confidence in earnings before we can turn more positive," said the analysts, who reiterated their 'hold' rating on the stock.

[fuji99] 07/6/2021 11:37

IMO anything below £30 looks an interesting entry point. Then just leave it for a while. This could quickly go back towards £40+ once they flag up positive news (approval) on the delay in the body armour programmes.
"We have seen significant growth in respiratory protection from both Military and First Responder customers, while Team Wendy has performed well following the acquisition in November 2020, and we completed the integration of the ballistic protection business acquired in January 2020 from 3M.

We are making good progress to resolve the delays in product approval for our body armor programmes and remain on track to commence shipments in the first half of our 2022 financial year."

[redips2] 03/6/2021 12:18

In today...

[pride23s] 03/6/2021 12:10

I also added the same day...

[mallorca 9] 29/5/2021 07:22

Director buy.
I added same day.
Watch the sharp rebound !

[jeffian] 27/5/2021 09:32

But he's not leaving that soon (March 2022). We don't know what his "personal reasons" are but if it was anything untoward, he'd have been out on 'gardening leave' instantly. Nearly a year to find a replacement and help to bed him in doesn't sound like a cause for concern to me.

[fuji99] 27/5/2021 09:08

Excellent company but the only cloud to be hanging around for a while will be questions on CFO leaving soon. Regardless of the reasons, this will throw some doubts around. IMO this will depress the share price for a few months. So I will keep out and watching for a while.

[18bt] 27/5/2021 06:45

bathcoup - no that's my back of the envelope calculations or revenue and PBT growth and what they say about Wendy's performance. They said they ere confident of "delivering full year expectations".

I was saying that there's a lot of noise, so you can't read too much into the half year on its own and need to look at what they say is happening when the noise dies down in H2.

[bathcoup] 26/5/2021 09:30

18BT: 25 May '21 - 07:26 - 170 of 183

"It's quite difficult to work out the results because of the restatement and the acquisitions, but it looks at least on track to deliver market forecasts."

18BT, I haven't read the results, and I'll have a look over the weekend.

Do the results contain bits that indicate a possibility of exceeding market forecasts ("at least" on track to deliver ..)? Or you're just saying that things could've been worse but at least it looks on track to deliver market forecasts. Experience taught me slight change in wording could make a huge difference.

[pipeline1] 25/5/2021 15:43

Not surprised he used to work at a cigarette company, he must've been smoking something when he drafted those results!

[fuji99] 25/5/2021 15:29

Two changes: Board and Avon name change.
Regarding the CFO, he is a fairly young guy who used to working as an auditor .... I hope he audited well the results:
"Nick Keveth Chief Financial Officer - - -
Nick was appointed as Chief Financial Officer in June 2017. Prior to joining Avon, Nick was Director of Finance, Planning & Reporting at Imperial Brands, the FTSE 20 tobacco group. He was with Imperial for 12 years and held a variety of senior finance roles during this period. Nick also served as a Non-Executive Director of the Spanish listed group Compania de Distribucion Integral Logista Holdings, S.A., a leading distributor of products and services to convenience retailers in Southern Europe, from 2014 until 2017. Prior to joining Imperial Nick worked for PricewaterhouseCoopers for 14 years in both audit and advisory roles."

[fuji99] 25/5/2021 15:25

Agree that a CFO "retiring" on results day is a bit strange to me."Avon Rubber p.l.c. announces that Nick Keveth, Chief Financial Officer and Executive Director, has informed the Board of his desire and intention to retire for personal reasons before the end of March 2022."

[pipeline1] 25/5/2021 15:11

Seems like they tried to be clever and presented a lot of "adjusted" and "restated" figures that appeared to show strong growth. However, bottom line profit was £3m for 6 months which hardly supports a £1bn market cap (170x P/E)?

Market has seen through the smoke and mirrors it seems. CFO is probably relieved he is going.

[jeffian] 25/5/2021 14:38

"What makes it worse is how the results have been reported as if they are good."

In what way aren't they good?

[pipeline1] 25/5/2021 13:46

Nasty market reaction. What makes it worse is how the results have been reported as if they are good. Would have been better to at least be up front rather than pulling the wool over our eyes.

CFO is way too young to be retiring. I hope there's nothing sinister afoot.

[mallorca 9] 25/5/2021 10:51

Just bought in again.