Investment summary

Avon’s interims were solid if unspectacular, affected by the timing of certain filter contracts and the non-recurrence of the same level of international non-DoD contracts. The positive developments being made across all parts of the group, through enhanced sales channels and an increasing product range to capture market share and move up the value chain, create an exciting opportunity for growth beyond this year. With investment in the Dairy management team and the opening of a sales and distribution facility in China adding impetus to these, until now, less prominent operations, we feel opportunities are substantial across the whole group.

Last updated on 09/05/2012

Industry outlook

Despite pressured budgets, the protective nature of Avon's products provides resilience and is supported by the long-term US DoD contract giving a base to target other security and safety agencies and international militaries. While timing of such inroads is difficult to predict, the emerging portfolio effect should enable continued growth, while Dairy expansion in the BRICs provides a further long-term opportunity.

Last updated on 23/04/2012