Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) announces its results for the year ended 30 June 2021. Key highlights include:
- Revenue and other income increased by 41% to $65.0m
- EBITDA improved by 116% to $16.0m
- NPAT improved by 178% to $13.7m
- Net operating cash flow increased by 195% to $17.6m
- Cash as at 30 June 2021 of $17.3m with no debt
- Announced divestment of Ava Global Logistics for net cash proceeds of US$31.1m
(~A$42.4m) with expected completion by the end of October 2021
Note: Growth percentages are based on comparing FY2021 to FY2020 results unless otherwise indicated.
Ava Risk Group CEO, Rob Broomfield, said: “Since acquiring MaxSec Group in December 2017, Ava Risk Group has been delivering consistent growth and moved into profitability over the past two years. We are really pleased with the crystallisation of value achieved from the Services Division, Ava Global, and the strong net cash return from the divestment – 587% over five years. We are also seeing strong returns from the Technology Division, both in top line growth and operational efficiencies, which is providing us with the capability to execute on future growth initiatives.
“Looking ahead, we are optimistic about our technology businesses – FFT and BQT – which together reported FY2021 revenue of $24.7 million and EBITDA of $8.3 million, up 17% and 64%, respectively. The increased momentum noted in the fourth quarter has continued into the current quarter, and new orders are building on the $4.3 million of FY2021 backlog. In addition to these new orders, we have already received over half of the $1.5 million of contracts expected in FY2021 but delayed. Furthermore, we have a very strong pipeline of sales opportunities in our existing markets, and a growing pipeline in new markets, including our mining conveyor solution Aura IQ.
“Extrapolating this increased momentum, and the recent progress on growth initiatives, as well as the recent senior appointment in the world’s largest security market – Jim Viscardi as VP of the Americas – management is confident of further growth in technology through FY2022.
“Importantly, we are looking beyond FY2022 to fulfil our vision of being a global leader in actionable, intelligent data streams that protect and optimise critical assets – by leveraging our partnerships, growing recurring revenue and leveraging our scalable model. We have a great team behind us, a strong network of partners, an exceptional customer base and ended the year in a robust financial position.”