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Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise that it has been awarded a contract, in partnership with Siemens Korea, to protect a critical solar infrastructure project in Qatar. The Company will supply its latest fibre optic sensing technology, Aura Ai-X, to support this project.

The total contract value is approximately US$0.7 million (A$1.0 million) for the supply of detection software and equipment as well as future software upgrades and support. Delivery of the detection software and equipment is expected to occur during Q2 FY24.

Securing this contract demonstrates the market opportunity for Aura Ai-X and builds on recent contract wins for this product since its launch in March 2023.  Aura Ai-X features an embedded deep learning engine to enhance system performance by referencing algorithm upgrades backed by the Company’s global data library. It combines a high Probability of Detection (POD) with the lowest Nuisance Alarms Rate (NAR) to deliver market leading performance and exceptional event classification.

Ava Risk Group CEO, Mal Maginnis commented: “Securing this contract reflects the success of our global commercial team in major markets and with large partner firms. It is also another vote of confidence in what we believe to be the most advanced perimeter intrusion detection technology in the market. I am also delighted by our continued commitment in supporting a more sustainable environment through the protection of solar technologies. The contract reinforces our confidence that Aura Ai-X has become the solution of choice for the smart protection of critical infrastructure worldwide.”

Approved for release by the Board of Directors.

For further information, please contact:

Investor Enquiries
Alexandra Abeyratne
Citadel-MAGNUS
aabeyratne@citadelmagnus.com
+61 438 380 057

About Ava Risk Group

Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates three business segments – Detect, Access and Illuminate. The Detect segment manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. Access is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Illumination specialises in the development and manufacture of   illuminators, ANPR cameras and perimeter detectors.  Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise that it’s new Aura Ai-X fibre optic sensing technology has been selected to protect a critical group of European Airports.

With a total value of approximately US$0.5 million (A$0.8 million), the contracts for Satu Mare and Sibiu Airports in Romania and another Western European hub are for the supply of detection software and equipment as well as a five-year contract to provide software upgrades and support. Delivery of the detection software and equipment is expected to occur during Q1 FY24.

These contracts confirm the market opportunity for Aura Ai-X, which features an embedded deep learning engine to enhance system performance by referencing algorithm upgrades backed by the Company’s global data library.

With unrivalled performance and exceptional event classification accuracy, Aura Ai-X delivers a leading Probability of Detection (POD) combined with the lowest Nuisance Alarm Rate (NAR).

Ava Risk Group CEO, Mal Maginnis commented: “Securing these contracts is a vote of confidence in what we believe to be the most advanced perimeter intrusion detection technology on the market. We are confident that Aura Ai-X will fast become the solution of choice for the smart protection of critical infrastructure worldwide.”

Approved for release by the Board of Directors.

For further information, please contact:

Investor Enquiries
Alexandra Abeyratne
Citadel-MAGNUS
aabeyratne@citadelmagnus.com
+61 438 380 057

About Ava Risk Group

Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates three business segments – Detect, Access and Illuminate. The Detect segment manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. Access is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Illumination specialises in the development and manufacture of   illuminators, ANPR cameras and perimeter detectors.  Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) announces its financial results for the year ended 30 June 2023.

Highlights

• Sales order intake grew to $30.9m, up 71% on the previous year.
• Group revenue from continuing operations of $28.6m, up 54% on FY22.
• Gross margins of 64% in line with FY22 (65%).
• Underlying EBITDA of $2.0m, up 150% on FY22 ($0.8m).
• Reported EBITDA of $1.3m, including one off expenses, up 63% on FY2022 ($0.8m).
• Significant focus and investment in customer facing sales and support capability to drive future growth – encouraging initial results with both sales order intake and revenue growing in H2 FY23.
• Successful launch of Aura Ai-X, the latest generation, data driven intrusion detection system.

In line with growth in its sales order intake, Ava Risk Group reported a strong financial performance for the year, with the Company increasing revenue 54% to $28.6 million. The increase is driven by $3.8 million of additional revenue in the Detect segment due to increased sales order intake, and $6.3 million of revenue from the Illuminate segment following the acquisition of GJD.

View Annual Report here.

View Investor Presentation here.

View Appendix 4G and Corporate Governance Statement here.

View Appendix 4E here.

Ava Risk Group CEO Mal Maginnis said: “Since joining Ava at the start of the year I have been focused on better aligning the business segments with customer solutions. This has resulted in a renewed focus on our customer facing sales and support teams and investment in upskilling our capability to deliver future growth. The initial results from these changes are encouraging, with good growth in sales order intake and revenue in the second half.

We were pleased to launch Aura AI-X earlier this year, delivering unrivalled performance using an embedded deep learning engine to improve detection rates and reduce nuisance alarms. We firmly believe Aura AI-X will become the solution of choice for the protection of critical infrastructure worldwide. This product has immediately shown success by winning a significant contract to protect a critical European border. Importantly, it also establishes a long-term support arrangement and recurring revenue stream with customers and gives them access to algorithms based on our global data library.

The addition of the Illuminate segment remains an important accelerator of growth for the Company. We are already seeing synergies with the large-scale solutions in the Detect segment and are confident in the opportunity to expand our market reach for this segment. There are a number of growth catalysts within the business and we have developed the organisational capability to execute on our plans.”

The Detect segment saw continued growth in key geographies and industry verticals with sales order intake in North America 34% of orders received, up 20% on the prior year, and with additional orders received from the energy sector. Orders from Europe grew significantly, including the first deployment of the Aura AI-X system to the protection of a critical European border. Orders for Ava’s conveyor belt solution were also fulfilled, demonstrating the ability of the core technology to be adapted to adjacent applications.

The integration of GJD following its acquisition in August 2022 provides Ava Risk Group with complementary technologies while strengthening the Company’s presence in the UK and western Europe. While the Illuminate segment has experienced challenging economic conditions in the UK during FY23 which has impacted domestic sales, combined customer solutions across the Detect and Illuminate segments have already been achieved.

The Access segment has made good progress towards meeting compliance obligations in order to access key distribution channels, which it anticipates will be obtained during Q1 FY24. While the segment recorded declining sales order intake and revenue during FY23 as a result, this will enable an acceleration of sales in FY24. Ava retains a global framework agreement for the supply of Access products to dormakaba International, a global leader in security access control systems.

The Group’s consolidated gross margin was broadly maintained at 64% (FY22: 65%) notwithstanding the addition of the lower margin Illuminate segment. Gross margin within the Detect and Access segments grew from the prior year reflecting careful supply chain management including the forward buying of inventory to lock in prices and secure supply. Margin in the Illuminate segment at 48% is consistent with expectations within the distribution business but has the effect of slightly diluting consolidated gross margin.

Group EBITDA of $1.3 million represents growth of 63% (FY22: $0.8 million). Excluding one-off costs of $0.7m associated with the reorganisation of the business during H2, underlying EBITDA is $2.0 million, up 150% on FY22. The Company’s net loss from continuing operations of $1.1 million is $0.4 million higher than the previous year (FY22: loss of $0.7 million) due to higher depreciation and interest charges associated with the acquisition of GJD.

The Company had a cash balance of $5.5 million at 30 June 2023 (FY2022: $15.2 million). The movement is driven by the GJD acquisition ($5.5 million, including overdraft acquired) and continued technology investment in the Aura platform ($1.9 million). Cash flow from operations was ($2.2 million) for the year mainly driven by increased inventory during the first half of the year to secure supply chains and lock in costs. Pleasingly, cash flow from operations during the second half of the year was positive, notwithstanding some one-off costs attributable to organisational changes.

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to provide the following update
on its Q4 FY2023 trading performance:

• Expected FY2023 revenue of $28.4 million to $28.7 million, in line with previous guidance range.
• Continued strong momentum in confirmed sales orders received during Q4 of $7.7 million, up 41% on the previous year, up 13% excluding Illuminate segment orders from GJD (acquired in August 2022).
• Full year confirmed sales orders of $30.9 million, up 71% on the previous year, and up 36% excluding Illuminate segment orders.
• Confirmed sales order backlog of $3.5 million relating to equipment orders expected to be fulfilled during Q1 FY2024 and multi-year services contracts.

Ava Group CEO Mal Maginnis commented: “Since joining Ava Risk Group in January, my focus has been on developing our global sales capability to better exploit our existing market leading technologies in each of our business segments. The growth in full year sales order intake is pleasing as it affirms the investment we are making. Of particular note is the sales order intake of $16.5 million in the second half, double that of the prior corresponding period. We expect to see continued sales order and revenue growth as our enhanced sales capability drives new opportunities while we ensure that our products and technologies remain market leading.”

Q4 FY2023 confirmed sales orders

The Company received sales orders of $7.7 million during Q4, an increase of 41% compared to the final quarter of the prior year primarily driven by strong sales order intake in the Detect segment. This resulted in full year sales order intake of $30.9 million, up 71% on the prior year driven by growth in the Detect segment and the addition of the Illuminate segment following the acquisition of GJD in August 2022. Highlights from fourth quarter sales orders include:

• Detect: Total Q4 order intake of $5.1 million, resulting in full year order intake of $20.7 million, up 55% on the previous year. Customer demand for Aura Ai-X fibre sensing technology was strong with additional new orders received during Q4. Aura-AiX was launched during Q3 and is the Company’s latest generation, data driven intrusion detection system.
• Access: Total Q4 order intake of $1.1 million, up 50% on Q3 order intake. Full year order intake of $3.9 million was down 17% on the previous year. Much of the focus during FY2024 has been on attaining product certifications in key distribution channels, which are anticipated to be completed during Q1 FY2024. The strength of its distribution contracts is expected to drive sales order growth in the Access segment in FY2024.
• Illuminate: Total Q4 order intake of $1.5 million, resulting in full year order intake of $6.3 million. The Illuminate segment continues to experience a slowdown in domestic orders in the U.K., reflective of challenging economic conditions. The Company is confident of growing orders during FY2024, particularly via its export channels.

As at the end of FY2023, the Company carried an order backlog of $3.5 million which represents sales orders received that are still to be fulfilled. These orders relate to equipment orders expected to be fulfilled in Q1 FY2024 and multi- year service contracts.

Ava Group’s Global Sales Team continues to expand with the recent appointment of Robert Bohn as Vice President, Americas.

Bob is an experienced VP Sales Business Development executive having worked extensively in the Defence and Space industry. With a track record of building high performance and motivated sales teams that understand the customer’s missions and challenges, Bob joins Ava Group after six years at Rapiscan, most recently as VP Sales and Business Development, North America. Prior to Rapiscan, Bob held positions at Smiths Detection including VP Sales and Business Development, Defence Solutions.

Sketch Mohan and Jon Hernandez have also joined the team, both based in the United States. Sketch joins the company as National Account Channel Manager focused on growing BQT Solutions’ access control footprint in the region, while Jon will support the installation and commissioning of Future Fibre Technologies perimeter intrusion detection solutions as a Technical Service Engineer. Welcome Bob, Sketch and Jon….

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to provide the following update on its Q3 FY2023 trading performance:

• Record quarterly confirmed sales orders of $8.7 million.
• Year to date confirmed sales orders of $23.1 million, up 84% compared to the prior year, and up 46% excluding Illuminate segment orders from GJD (acquired in August 2022).
• Confirmed sales order backlog of $3.8 million expected to be predominantly fulfilled during Q4 FY2023.
• Launch of new Aura Ai-X fibre sensing technology, the Company’s latest generation, data driven intrusion detection system, integral to securing a US$1.5 million contract to protect a critical European border.
• FY2023 revenue guidance of $27.6 million to $29.6 million based on current confirmed orders and expected performance in Q4.

Ava Group CEO Mal Maginnis commented: “It is pleasing to see the momentum that the Company is generating.  Since joining Ava Risk Group in January, I have focussed on strengthening our global sales capability across all business segments. This has resulted in the record sales order intake during Q3 and we are well placed to continue to grow through Q4 and into FY2024. I am also pleased to see the positive market response to the launch of the Aura Ai-X fibre sensing technology. We believe this is the most advanced perimeter intrusion detection system on the market and will become the solution of choice for the protection of critical infrastructure worldwide.”

Q3 FY2023 confirmed sales orders
The Company received record sales order intake of $8.7 million during the quarter, resulting in year to date sales order intake of $23.1 million, up 84% on the prior comparative period.   Significant growth was recorded in the Detect segment highlighting the launch of the Aura Ai-X fibre detection system and continued investment in our global sales capability.  Key highlights from third quarter sales orders include:

• Significant contract win for the deployment of Aura Ai-X to protect a critical European border – total contract value of US$1.5 million including a five year commitment to supply software upgrades and support;
• Total order intake for the Detect segment during Q3 of $6.4 million, up 68% on the orders received during Q2, with growth in the Company’s key geographic markets.
• Consistent performance of the Illuminate segment delivering order intake of $1.7 million, despite a slowdown in domestic orders in the United Kingdom.
• Confirmed orders in the Access segment declined slightly from the previous quarter, reflecting the timing of orders from a major distributor. We remain confident in the strength of the distribution contracts supporting the Access segment and expect to see growth in Q4 and into FY2024.

As at the end of March 2023, Ava carried an order backlog of $3.8 million which represents sales orders received that are still to be fulfilled.  It is anticipated that most of these orders will be fulfilled during Q4 FY2023.

Chart 1 – Sales Order Intake

Outlook
Management provides full year revenue guidance for FY2023 in the range of . The forecast range is based on the existing sales order backlog and expected performance during Q4. Attainment of forecast revenue is contingent on customer timing for both the placement and fulfilment of orders.

ENDS

Approved for release by the Board of Directors.

For further information, please contact:
Investor & Media Enquiries
Alexandra Abeyratne
Citadel-MAGNUS
aabeyratne@citadelmagnus.com
+61 438 380 057

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates three business segments – Future Fibre Technology (FFT), BQT Solutions (BQT) and GJD Manufacturing (GJD). FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. GJD is a specialist in the development and manufacture of perimeter detectors, illuminators, and ANPR cameras. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise that it’s new Aura Ai-X fibre optic sensing technology has been selected to protect a critical European border.

This contract marks the first sale of Aura Ai-X – the Company’s latest generation, data driven intrusion detection system. Aura Ai-X has an embedded deep learning engine that enhances system performance by referencing algorithm upgrades backed by the Group’s global data library.

With unrivalled performance and exceptional event classification accuracy, Aura Ai-X delivers a Probability of Detection (POD) combined with lowest Nuisance Alarms Rate (NAR).

The contract, valued at approximately US$1.5 million (A$2.2 million), is for the installation of detection software and equipment as well as a five-year commitment to provide software upgrades and support. Delivery of the detection software and equipment is expected to occur during Q4 FY23.

Ava Risk Group CEO, Mal Maginnis commented: “Securing this contract is a vote of confidence in what we believe to be the most advanced perimeter intrusion detection technology on the market.”

“We are confident that Aura Ai-X will fast become the solution of choice for the smart protection of critical infrastructure worldwide.”

Approved for release by the Board of Directors.

For further information, please contact:

About Ava Risk Group

Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates three business segments – Detect, Access and Illuminate. The Detect segment manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. Access is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Illumination specialises in the development and manufacture of   illuminators, ANPR cameras and perimeter detectors.  Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) announces its half year results for the six months ended 31 December 2022.

Highlights

• Group revenue grew by 50% to $13.6m ($9.1m for 1H FY2022)
• Gross margins maintained at ~66%, resulting in increased gross profit
• Group EBITDA of $1.2m ($0.2m for 1H FY2022) and margins have expanded to 9% vs 3% in the prior year
• Additional contracts won in the North American energy sector and initial commercial orders for Aura IQ
• Acquired UK-based security technology supplier GJD, providing a complimentary product and technology footprint and go-to-market capability in the UK and western Europe
• Investments made to support growth of market leading position in AI
• Cash balance of $7.1m as at 31 December 2022

In line with a growth in sales order intake, Ava Group reported strong financial performance for the first half, with Group revenue of $13.6 million, up 50%. Significant revenue growth was recorded in both the Detect and Access segments, and further accelerated by the addition of the Illumination segment during the period.

The Group has been organised into the following three operating segments:

Ava Risk Group CEO Mal Maginnis said: “These strong results reflect significant momentum during the first half, with an uplift in sales order intake flowing through to over 50% in revenue growth. We also ramped up investment in our market leading AI capability to drive improved system performance and a compelling customer upgrade path, and ensuring we remain well placed to support our major global distribution partners.

“We continue to build our position as a global leader in risk management technology with our strategy focused on increasing market share and developing new and adjacent verticals. We see catalysts for future growth in each operating segment and we are well placed to grow in the remainder of the second half and beyond.”

In August 2022 Ava Group acquired GJD, a leading UK based security technology supplier specialising in illumination and detection applications and creating Ava’s Illumination segment. GJD provides Ava with a complimentary product and technology footprint as well as an established go-to-market capability in the UK and western Europe.

The Company maintained its gross margin at around 66%, even with the addition of the lower margin Illumination segment. Revenue and gross profit growth has resulted in improved EBITDA of $1.2 million ($0.2 million for 1H FY2022) as the Company has leveraged its cost and technology base. Resultant EBITDA margins have expanded to 9% compared to 3% in the prior year.

During the first half Ava continued investing in its AI technology, building on its Aura IQ and perimeter detection platforms. This investment is critical to growing the Company’s market leading position in AI, driving improved system performance and providing a compelling customer upgrade path.

Net loss from continuing operations was $0.2 million (1H FY2021 was a net loss of $0.9 million) reflecting improved EBITDA, partly offset by higher depreciation charges. The Company has a cash balance at 31 December 2022 of $7.1 million.

Outlook

As stated in the Q2 FY2023 announcement, management reaffirms that it expects revenue to exceed the first half during the second half of the financial year. Further revenue guidance for the second half of the year will be provided in the Q3 FY2023 Trading Update based on Q3 sales order intake.

Investor webinar

Chairman David Cronin, CEO Mal Maginnis and CFO Neville Joyce will host a Zoom webinar to present the results at 9am AEDT today. To register for the webinar, please select the following link:

https://us06web.zoom.us/webinar/register/WN_rR_Iic5kRfKKEb1bKfKYLw

Review 1H FY23 Results Presentation

Review Appendix 4D and Interim Financial Report

ENDS

Approved for release by the Board of Directors.

 For further information, please contact:

 About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates three business segments – Detect, Access and Illumination. The Detect segment manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. Access is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Illumination specialises in the development and manufacture of   illuminators, ANPR cameras and perimeter detectors.  Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com