Avon Technologies plc (AVON): STAR strategy and margin target

This situation live

£730m · £23.75 · +28% since the first step

12 Nov 2025 · Phase one nearly complete; Irvine closed · −11% until the next step We remain fully committed to our STAR strategy, and it's delivering.

13 May 2026 · Targets met early; shifting to growth · +44% until the next step New mid-term growth targets to be set out with FY26 results

Turnaround plan with targets

STAR strategy and margin target

New phase: Improve. Grow. Compound.

NOV10 Next: FY27 guidance at the full year results in 17 days

Every step · 4

12 Nov 2025 Phase one nearly complete; Irvine closed – We remain fully committed to our STAR strategy, and it's delivering. ↗
30 Jan 2026 Moving to growth stage; Cleveland efficiency still to improve – We remain on track to meet or exceed our FY26 financial targets and look forward to sharing the next phase of our strategic development alongside our... ↗
13 May 2026 Targets met early; shifting to growth – New mid-term growth targets to be set out with FY26 results ↗
7 Oct 2026 New phase: Improve. Grow. Compound. – Today’s presentation will set out the next phase of the Group’s strategy: Improve. Grow. Compound. ↗

What is happening

Avon Technologies plc: STAR strategy and margin target – New phase: Improve. Grow. Compound.. ['New phase: Improve. Grow. Compound.']

In short: The earlier STAR targets were met early and the strategy shifted to growth. On 7 Oct 2026 Avon set out its next phase, Improve. Grow. Compound., with organic targets of over 5% revenue CAGR, 16-18% adjusted operating margins and over 10% annual EPS growth. It also set over $175m of free cash flow over three years and a five-year revenue target of over $600m, with selective acquisitions to add to EPS.
Announced: 12 Nov 2025 · Phase one nearly complete; Irvine closed
Latest: 7 Oct 2026 · New phase: Improve. Grow. Compound.
Organic targets: Revenue CAGR above 5%; adjusted operating margin 16-18%; EPS growth above 10% a year
Free cash flow: Over $175m over the next three years, with inventory turns above 5x
Five-year targets: Revenue over $600m; further EPS accretion through capital deployment; ROIC over 18%
M&A: Selectively acquire, improve and grow protection technology businesses
Next milestone: FY27 guidance with full year results on 10 November

FY27 guidance at the full year results (10 Nov 2026).

Briefing Pro

What it does, how it got here, what management promised and delivered – written from its own announcements.

From the company's own announcements. Not investment advice.

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