RE: bargain on the year14 Aug 2021 09:58
AJ Bell analysis.
AJ Bell financial analyst Danni Hewson commented: ‘The specialist in body armour, gas masks and other breathing apparatus is being hit by a damaging combination of supply issues and order delays, which it attributes to the impact of Covid-19.
‘While these may be legitimate excuses, this certainly isn’t a case of the dog ate my homework, others in its peer group seem to have been able to mitigate these impacts more effectively and the pandemic isn’t something new, these problems could and probably should have been seen coming earlier.
‘Avon’s failure to do so damages the credibility of the group’s leadership and the knock-on effect from the disruption is significant because it has lots of fixed costs, resulting in a bit of a cash crunch.’