Avon Protection

Avon Protection Dividend Analysis and Summary

• Interim dividend declared: 8.1c per share (USD cents), up 6.6% year-on-year (HY25: 7.6c).
• Ex-dividend date: 06/08/2026; Record date: 07/08/2026; Payment date: 04/09/2026.
• Currency: Declared in USD cents; paid in GBP at the prevailing exchange rate to be announced prior to payment.
• Cash cost: Expected to utilise ~$2.3m (dividends waived on treasury/LTIP shares reduce cash outflow).
• Dividend cover (HY26): Adjusted EPS 56.4c ? ~7.0x cover; Statutory EPS 35.0c ? ~4.3x cover.
• Recent payment: FY25 final dividend of 17.0c paid on 06/03/2026.

• Coverage is strong on both adjusted and statutory earnings, suggesting the interim dividend is well supported by current profitability.
• H1 performance improved materially: revenue +6.8% (cc), adjusted operating margin 15.2% (within 14–16% target), adjusted EPS +45%. ROIC at 20.8% exceeds the >17% target.
• Cash conversion was 38%, depressed by timing; management notes $18m cash received just after period-end, implying underlying conversion near ~100% absent timing effects.
• Balance sheet headroom: net debt excl. leases $58.0m, leverage comfortably <1x; RCF extended to May 2029 with significant liquidity.
• Guidance points to resilience: FY26 margin expected towards the top of the 14–16% range; strong installed base and aftermarket revenues provide recurring cash flows. Together, this supports a sustainable, modestly growing dividend profile.