• Quarter on quarter improvement in revenues and cash flows
• Consolidated cash position of $3.1m, with no debt
• One-off cash flows relating to AVA compulsory acquisition of MSP minority holders of $1.2m
Ava Risk Group Limited (ASX: AVA), a market leader of risk management services and technologies, today released its Appendix 4C for the quarter ended 31 December 2018 and provides an update as to the Indian Military project.
Net operating cash flows were positive $0.7m for the quarter, a $2.0m improvement on the previous quarter. Cash receipts from customers were $9.6m for the quarter, a $2.3m increase on the previous quarter.
At 31 December 2018 the Company had $3.1m cash at bank and no debt.
Gross forecast operating cash outflows of around $8.9m are expected for next quarter, consistent with the quarter just ended. This excludes cash inflows from customer payments and government R&D rebates. Orders in hand (backlog) for 2HFY2019 at 31 December 2018 are in excess of $4.0m.
Whilst the Company is yet to receive the formal purchase order for the Indian Military Data Network project (Letter of Intent announced to ASX 5 September 2018) we are pleased that detailed negotiations continue between the prime contractor and our in country OEM partner. Recent negotiations have included increasing the scope of the contract, which, if
concluded as expected, will increase the amount of revenue that Ava receives under the contract award. Further particulars will be provided when negotiations are concluded and we receive the formal purchase order.
Ava Group Chief Executive, Chris Fergus said: “Ava’s strategic growth plans significantly progressed in the quarter with the completion of the compulsory acquisition of MaxSec Group Limited. Orders received increased over the prior quarter, especially for FFT, and this supports our expectations for revenue growth in the second half year of the year. Ava’s overall second quarter revenue was lower than expected for the Technology Division, primarily due to timing of order receipts and customer delays, but this was partially offset by the revenue growth in the Services Division. Operating cash flow was positive, being broadly in line with expectations.”
About Ava Group
Ava Group is a market leader of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.
The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control, a range of high security locks as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive
portfolio of premium services and technologies for the most complex and demanding markets.
Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.
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