All posts in ASX Announcement

FY24 Results and Materials

Ava Risk Group Limited (ASX: AVA) (“Ava” or “the Company”) announces its full year results for the financial year
ended 30 June 2024.

Highlights

  • Sales order intake of $35.3 million, up 14% on PCPGroup revenue and other income of $30.2 million1 up 5.6% on PCP and 2H24 up 13% on 1H24
  • Significant orders in major infrastructure projects in Australia and Latin America secured
  • Major supply agreement with Telstra Group announced in February 2024
  • Group gross margin of 60%, in line with expectations
  • Underlying Group EBITDA of $(0.9) million following investments in technology and commercial capabilities
    supporting a record sale order intake, with EBITDA positive in 2H FY24
  • Sales order backlog of $8.5 million at 30 June 2024, representing orders received yet to be fulfilled
  • Backlog includes $2.0 million of annual recurring revenue under contract driven by strong uptake of
    subscriptions for Aura Ai-X
  • Cash balance of $5.1 million at 30 June 2024

Ava’s strong sales order intake represents continued progress across each operating segment, and in building the Company’s position as a global leader in sensing and risk management technology.

View full results announcement here.

View Investor Presentation here.

View Appendix E and Annual Report here.

View Appendix 4G and Corporate Governance Statement here.

 

 

Notice of FY2024 Result and Webinar

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) will release its full year results for the financial year ended 30 June 2024 on Tuesday 27 August 2024.

Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure.

Chairman David Cronin, CEO Mal Maginnis and CFO Neville Joyce will host a Zoom webinar to present the results at 9:30am AEST on the same day.

To register for the webinar, please follow the link below.

Date & Time: Tuesday 27th August 2024 at 9:30am AEST

Zoom link: https://us06web.zoom.us/webinar/register/WN_PsX4gbqiRNCK11qkTUSFm

 

ENDS

This announcement is authorised for release by the Board of Directors.

For further information, please contact:

Investor Enquiries
Alexandra Abeyratne
Sodali & Co
alexandra.abeyratne@sodali.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 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

Q4 FY2024 Trading Update

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to provide the following update on its Q4 FY2024 trading performance:

  • Continued sales momentum with confirmed Q4 sales order intake of $9.0 million, resulting in full year sales order intake of $35.3 million, up 14% on the prior year.
  • Strong sales order backlog of $8.5 million (including $2.0 million in contracted ARR) to support revenue growth in FY2025 consisting of equipment orders and multi-year service contracts.
  • Significant progress on key projects and initiatives with UGL, Telstra, as well as a European border, and the Australian Oil and Gas and U.S. Energy sectors.
  • Expected FY2024 revenue of around $30.2 million, within the guidance range.
  • Scalable cost base resulting in positive EBITDA in H2 FY2024, a material improvement on H1 FY2024.
  • Successful completion of an oversubscribed Share Purchase Plan in May which raised more than $1.3 million
    following an institutional placement of $3.0 million of new fully paid ordinary shares in March 2024.

Ava Group CEO Mal Maginnis commented: “Activity levels across the Company remain very high. Sales order intake in Q4 was solid and delivered full year sales order growth of 14% on the prior year. It is pleasing to see expansion of our solution offering to customers, particularly across the Detect and Illuminate segments. The sale of Illuminate products to support our fibre offering to U.S. based correctional facilities is a great example of how we can leverage our existing customer base to expand our product footprint. Similarly, the deployment of Aura Ai-X to a variety of different applications ranging from energy infrastructure to a sovereign border in Europe highlights the versatility and effectiveness of our technologies.”

“Execution of key contracts and relationships remains critical to our future success. Achievement of SIL2 certification for Aura Ai-X during Q4 to support the UGL contract is a clear demonstration of our growing capacity to manage more sophisticated relationships. We maintain a high-quality sales opportunity pipeline and have established and maintained relationships with premium partners such as UGL, Telstra, Siemens, dormakaba and Bosch. We are well placed to accelerate growth in FY2025.”

Q4 FY2024 confirmed sales orders

Full year sales order intake of $35.3 million is an increase of 14% on the previous year. All operating segments recorded growth on the previous year.

  • Detect: Total Q4 sales order intake of $6.5 million resulting in full year order intake of $23.3 million, an increase of 12% on the previous year. Sales order growth continues to be supported by strong demand for Aura Ai-X, the Company’s latest generation data driven intrusion detection system.

    The versatility of the market leading Aura Ai-X solution is highlighted by the range of confirmed orders received during Q4. The Company received a follow-on order (A$0.5 million) for deployment of its technology to an Eastern European border. The solution uses buried fibre to protect 47km of a remote border and builds on an earlier order received in March 2023 to protect the same border. The Company also received orders in Q4 to provide protection to three electricity substations on the East Coast of the U.S. (A$0.7 million). The nature of these orders demonstrates the success of Aura Ai-X in providing infrastructure protection to multiple applications in complex environments and across multiple geographies.

  • Access: Total Q4 order intake of $1.0 million, resulting in full year order intake of $5.7 million, growth of 48% on the previous year. The significant growth on the previous year is primarily driven by orders from dormakaba for the Cobalt series locks, particularly in H1 as stocking orders moved through its distribution network. We are confident of further growth in the Access segment in FY2025 as demand grows for the Cobalt locks via dormakaba’s distribution network.
  • Illuminate: Q4 order intake of $1.5 million resulting in full year order intake of $6.4 million, slightly higher than the prior year. Pleasingly, Q4 order intake includes the first orders received from U.S. based correctional facilities for Illuminate products to support the fibre sensing solutions provided by the Detect segment. The complementary nature of Illuminate and Detect product offerings remains a key focus in FY2025.

At the end of FY2024, Ava Risk Group carried an order backlog of $8.5 million which represents sales orders received that are still to be fulfilled. Of the backlog, $4.9 million relates to equipment for project delivery which is anticipated to be fulfilled primarily in H1 FY2025. The balance of the backlog relates to commissioning services and multi-year support contracts including contracted ARR of $2.0 million.

Update on UGL Limited contract for implementation of detection systems of major Sydney transportation project

As announced on 7 December 2023, Ava Risk Group was awarded a contract from UGL Limited to deploy its fibre optic sensing systems on a Sydney transportation project. The contract was estimated to be valued between A$2 and $3 million. Working collaboratively with UGL, Ava Risk Group has received a number of contract variations as the project scope has been finalised. The current value of the contract and related variations is A$3.0 million.

During Q4 the Company accomplished a number of important milestones in fulfilling its obligations under the contract. It successfully completed system trials and has completed the system design in conjunction with UGL. The Company also received Safety Integrity Level 2 (“SIL2”) certification for its Aura Ai-X intrusion detection technology and software. This means that that Aura Ai-X satisfies the requirements of EN50128:2011 – a standard that specifies the process and technical requirements for the development of software for programable electronic systems used in railway control and protection applications. Increasingly valued by customers, SIL2 represents a significant level of safety assurance and ensures that the implemented safety measures and systems meet the required standards. SIL2 certified systems guarantee mitigating risks, potential hazards, and enhancing the overall safety performance in projects.

Ava Risk Group has shipped the contracted systems to UGL during Q4. Installation and commissioning of these systems (approximately 10% of the contract value) is expected to occur during H1 FY2025.

Update on supply agreement with Telstra Group

As announced on 9 February 2024, Ava Risk Group signed a supply agreement with Telstra Group for the provision of goods and services to Telstra from each of its operating segments. Since signing the agreement, the Company has worked collaboratively with Telstra on developing applications for fibre sensing technology and other products. Activity during Q4 was slightly disrupted by some restructuring activity that occurred within Telstra. Nonetheless we have progressed on several opportunities that we expect to deliver during FY2025. Telstra has initiated a trial of our Illuminate and Detect technologies to provide protection for remote mobile network towers and infrastructure. The trial is expected to complete in H1 FY2025. The Company also continues to develop applications with Telstra which use our fibre sensing technologies to transform Telstra’s existing fibre network to sensors.

Strategy & Outlook

We continue to invest in our commercial capability and technology. Whilst this investment did impact EBITDA in FY2024, it has positioned the Company well for future growth. We remain committed and focused on the strategy to grow revenue and profits and have a clear path to continued growth over the next 24 months underpinned by:

  • Growth in sales order intake.
  • Strong sales order backlog.
  • Increasing recurring revenue.
  • High gross margins of 60 – 65%.
  • Scalable cost base generating positive EBITDA.

FY2024 Financial Results

Ava Risk Group will release its financial results for the year ending 30 June 2024 on Tuesday 27 August 2024. Details of an investor webcast will be provided to the market in due course.

ENDS

Approved for release by the Board of Directors.

For further information, please contact:

Investor Enquiries
Alexandra Abeyratne
Sodali & Co
alexandra.abeyratne@sodali.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 Group wins contract to secure multiple US electricity substations

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise that it’s latest generation Aura Ai-X intrusion detection technology has been selected for three electricity substations on the East Coast of the United States. The contract, valued at over A$0.7 million, has been awarded by Johnson Controls Inc who are the system integrator for the substation projects and is for the immediate supply of detection equipment to the sites. There are no other conditions attached to the contract.

The contract demonstrates the ongoing demand for Ava Risk Group’s ‘Detect’ solutions from the US power sector as operators look to combat physical attacks on critical infrastructure and mitigate service disruption. It builds on the success the Company has achieved in recent years in providing intrusion detection technology to critical energy infrastructure in North America.

Ava Risk Group CEO, Mal Maginnis commented: “With increasing attacks on substations across the US, implementing security technology to protect infrastructure from vandalism, suspicious activity and physical attack has become a key priority for power authorities. We’re pleased that our intrusion detection technology has again been selected to protect these substations and are confident that our footprint in this market will continue to grow as new sites are added to the power grid.”

Approved for release by the Board of Directors.

For further information, please contact:
Investor Enquiries
Alexandra Abeyratne
Morrow Sodali
aabeyratne@morrowsodali.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

Investor Presentation

View the latest investor presentation here.

Q3 FY2024 Trading Update

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to provide the following update on its Q3 FY2024 trading performance:

  • Q3 sales order intake of $6.8 million, resulting in year-to-date (YTD) sales order intake of $26.6 million, up 15% on the prior year.
  • Major supply agreement signed with Telstra Group for the supply of products and services from all operating segments – Detect, Access and Illuminate. Execution of this agreement establishes a substantial opportunity in the global telecommunications market.
  • Confirmed sales order backlog of $8.3 million; approximately two thirds is expected to convert to revenue in the current financial year, with the remainder to be delivered predominantly in FY2025.
  • Successful completion of a $3.0 million institutional placement of new fully paid ordinary shares and a share purchase plan for eligible existing shareholders to raise up to an additional $1.0 million. Participation in the share purchase plan expires on 30 April 2024.
  • Second half revenue guidance reaffirmed at $16 million to $20 million (range dependent on project delivery timing).

Ava Group CEO Mal Maginnis commented: “Growth in sales order intake remains strong at 15% on the prior year. Order intake during Q3 in Detect was lower than the previous quarter due to project timing. I remain confident in the quality of the pipeline in the Detect business and we expect to finalise various opportunities in Q4.”

“Execution of the supply agreement with Telstra represents a significant milestone. Following a period of extensive collaboration, the agreement clearly demonstrates the adaptability of our market leading fibre sensing technology to adjacent applications such as telecommunications. Importantly, it also provides an opportunity to supply our Access and Illuminate solutions in the sector.”

“Completion of the institutional placement of $3.0 million in new shares highlights the continued support from existing investors as well as attracting new investors. This strengthens our balance sheet and leaves us well placed to pursue growth and execute on significant major contracts such as UGL and Telstra.”

Q3 FY2024 confirmed sales orders
YTD sales order intake of $26.6 million is an increase of 15% on the previous year. All operating segments recorded growth on the previous year. Q3 sales order intake of $6.8 million is lower than the previous quarter due to the timing of some Detect opportunities which are forecast to close within Q4.

  • Detect: Q3 sales order intake of $3.9 million resulting in YTD order intake of $16.8 million, an increase of 8% on the previous year. The order intake in the quarter was underpinned by a strong performance in Australia ($2.2 million) and U.K. / Europe ($0.8 million). Performance in the Americas and Middle East was slightly subdued with material increases expected in Q4 as a number of opportunities close within the final quarter.
  • Access: Total Q3 order intake of $1.0 million continues to build on the strong first-half, resulting in YTD order intake of $4.8 million, up 73% on the previous year. This includes additional orders from dormakaba for the Cobalt series locks as H1 stocking orders move through its distribution network. This remains a key focus to drive additional orders during Q4 and beyond.
  • Illuminate: The Illuminate segment continues its improved trajectory with Q3 sales order intake of $1.8 million resulting in YTD order intake of $5.0 million, up 5% on the previous year. The Company remains confident of further growth in Illuminate in Q4 and beyond based on improved domestic performance in the U.K. and expansion into new geographies in Asia Pacific and the Americas.

Importantly, at the end of Q3 FY2024, Ava Risk Group carried an order backlog of $8.3 million which represents sales orders received that are still to be fulfilled. Of the backlog, $5.3 million relates to anticipated project delivery in Q4 FY2024 with most of the remainder to be delivered in FY2025.

Chart 1 – Sales Order Intake

Supply Agreement with Telstra Group
On 9 February 2024, the Company announced that it had executed a supply agreement with Telstra Group for the supply of products and services from each of its operating segments. The agreement was the culmination of extensive collaboration with Telstra including product trials with Telstra and its customers. It represents a significant milestone and demonstrates the adaptability of Ava Risk Group’s market leading fibre sensing technology to adjacent applications such as telecommunications.

The agreement opens a substantial new opportunity in the telecommunications sector. The product trials demonstrated the superior ability of the Company’s fibre sensing technology to be deployed to Telstra’s existing fibre network to detect events and provide appropriate classification and reporting. It provides a rich source of data to Telstra and effectively turns the existing fibre network into sensors. Engagement with Telstra is ongoing to develop a program of work for delivery in FY2025 and beyond.

Institutional Placement and Shareholder Purchase Plan
During Q3 the Company completed an institutional placement of $3.0 million of new fully paid ordinary shares. The shares were acquired by existing and new shareholders with demand reflecting continued support for the Company’s growth strategy.

The Company also launched a share purchase plan for eligible existing shareholders which is expected to raise up to an additional $1.0 million. Participation in the share purchase plan expires on 30 April 2024.

Proceeds from both the institutional placement and share purchase plan will go towards supporting the execution of recently announced major contract wins, including working capital and product development requirements for large scale Detect programs.

Outlook
Based on the existing order intake and expected sales pipeline conversion, management provides revenue guidance for the second half year in the range of $16 million – $20 million (range dependent on the timing or project delivery).

ENDS

Approved for release by the Board of Directors.

For further information, please contact:
Investor Enquiries
Alexandra Abeyratne
Morrow Sodali
aabeyratne@morrowsodali.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

Share Purchase Plan

Download the Share Purchase Plan booklet here

Strawman Interview

Watch CEO Mal Maginnis’ chat with Andrew Page from Strawman here.

Ava Risk Group announces successful completion of institutional placement

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to announce the successful completion of its $3.0 million institutional placement of new fully paid ordinary shares (“New Shares”) (the “Placement” or the “Offer”). The Company also intends to launch a share purchase plan (“SPP”) for eligible existing shareholders to raise up to $1.0 million.

Proceeds from the Offer and SPP will go towards supporting the execution of the recently announced contract wins, including working capital to support the sale of units, dedicated support resources and infrastructure to respond in accordance with contract requirements and ongoing product development. Funds will also be applied to fund large scale Detect programs.

Commenting on the equity raising, Chairman David Cronin said, “It’s great to have the continued support from existing investors but also to welcome some new investors to the register. Having secured several major new contracts especially in our Detect segment, including with Telstra and UGL, these funds give us the flexibility to support the growing demand we are seeing for our unique fibre sensing technology across multiple industries. We are also pleased to offer our loyal retail shareholders the opportunity to participate on the same terms via the Share Purchase Plan.”

INSTITUTIONAL PLACEMENT
Ava Risk Group received strong support for the Placement from both existing and new institutional and professional investors, raising a total of approximately $3.0 million.

No shareholder approval is required for the Placement, as Ava Risk Group will utilise available placement capacity under Listing Rule 7.1.

The Placement is expected to settle on Friday, 5 April 2024 and New Shares under the Placement are expected to be allotted on Monday, 8 April 2024.

New Shares under the Offer will be issued at a price of $0.13 per New Share (“Offer Price”), which represents a:

  • 18.8% discount to the Company’s last traded price on Tuesday, 26 March 2024 (A$0.160)
  • 16.4% discount to the 5-day VWAP (A$0.156)
  • 18.0% discount to the 10-day VWAP (A$0.159)

Canaccord Genuity and Petra Capital Pty Ltd are the joint lead managers and joint bookrunners to the Placement (“Joint Lead Managers”).

Ava Risk Group shares are expected to resume trading on ASX from market open today (Thursday, 28 March 2024).

SHARE PURCHASE PLAN
Ava Risk Group will offer eligible Ava Risk Group shareholders in Australia or New Zealand on Ava Risk Group’s register as at the record date, the opportunity to apply for up to A$30,000 of New Shares free of any brokerage, commission and transaction costs in accordance with a share purchase plan (“SPP”). The SPP will be priced at the Offer Price. Full details of the SPP will be set out in the SPP Offer Booklet, which will be released to the ASX and made available to eligible shareholders in Australia and New Zealand in early April 2024.

All the amounts are in Australian dollars unless otherwise indicated.

ENDS

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

Investor Presentation

View the latest investor presentation here.