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Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) today provides the following market update with respect to the large-scale supply of FFT’s SecureLink technology to protect data communications cables for the Indian Ministry of Defence (IMOD):

• Balance of 200 units from tranche 1 and 200 units from tranche 2, a total of 400 units, have been shipped to the End User
• US$1.9m (A$2.6m) due to be received by Ava Group in November 2020

Ava Group is pleased to advise, that it has received notification that the remaining units from tranche 1 have now been shipped to the End User. This means that all 600 units of Tranche 1 (~25% of the IMOD project) have been manufactured, successfully passed Factory Acceptance Testing, and have been shipped to the End User. Manufacturing has continued in July 2020 and to date we have issued licences for an additional 50 systems generating a further US$0.2m (A$0.3m) in revenue.

Ava Group CEO Rob Broomfield said: “Confirmation that all units from the last batch of Tranche 1 have been shipped along with a further 200 units to the End User is great news. This will provide Ava Group with a circa A$2.6m boost in November to our already strong cash position. Furthermore, the supply chain has been activated and manufacturing activities have commenced for Tranche 2 which we expect will all be fulfilled within FY2021, generating a further US$5.4m (A$7.5m) in revenues.”

For further information, please contact:

Rob Broomfield, Group CEO & Executive Director	Leigh Davis, CFO & Company Secretary
Ava Risk Group Ltd	Ava Risk Group Ltd
rob.broomfield@theavagroup.com	leigh.davis@theavagroup.com
+61 3 9590 3100	+61 3 9590 3103

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

About the Ava Group 

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT), BQT Solutions (BQT), and international secure logistics services division Ava Global, is a market leader in the provision 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 as well as 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. 

Note 1

IMOD Contract Background:
The total contract value to Ava for this project is estimated at US$11.9m (A$16.7m).

All 600 units (~25% of project) have now been built by Ava’s in-country partner SFO: 

• The first 200 units passed FAT and shipped in late Dec 2019. 
• The second 200 units passed FAT in late Jan 2020 and shipped in July 2020.
• The last 200 units of this batch passed FAT in July 2020 and shipped in July 2020.

In H1 FY2020, Ava recognised ~US$1.0m (~A$1.5m) of the order, being ~US$0.9m (~A$1.3m) as top line sales revenue, and ~US$0.1m (~A$0.2m) as an income tax credit.  In H2 FY2020 Ava recognised a further ~US$2.3m (~A$3.4m) as top line sales revenue and ~US$0.2m (~A$0.3m) as an income tax credit. 

SFO’s Bank Guarantee to Ava for ~US$2.1m (~A$2.9m), tocover the 120 days payment terms remains in place.

Further information on the IMOD project is available via previous market announcements (see www.asx.com.au)

Forward Looking Statements
Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) today provides the following market update with respect to its previously announced guidance for its expectations for Q4 and FY2020:

• Q4 revenue now forecast at $12.3m, exceeding previous guidance by +$1.8m
• H2 revenue forecast of approximately $24.6m, more than $2m higher than previous guidance
• FY2020 revenue now forecast to be approximately $45m
• FY2020 EBITDA now forecast be circa $6.8m, and $1.8m higher than previously expected
• Q4 IMOD revenue now forecast at $1.3m, exceeding previous guidance by $0.8m

Services Division
The Services Division has continued to perform strongly during Q4 and has increased its revenue, margin and customer diversification during the quarter. Despite Covid-19 related global challenges within the air freight sector, the Services Division has successfully managed to maintain and increase its full suite of services to its customer base.

Technology Division
During Q4 the Technology Division has been impacted by approximately $2.5m of order delays associated with the global Covid-19 situation. Supply chains have experienced some delays, a majority of employees have been working from home on reduced hours and pay whilst international travel for commissioning systems and attending to maintenance services remains challenging. Some of our major systems integrator customers have been delayed in their own programs to deploy our systems at end user sites. Whilst we have seen some improvement to these challenges in June, we will continue to monitor the situation and adapt our operating strategy appropriately.

As previously announced, manufacturing for our large-scale supply of FFT’s SecureLink technology to protect data communications cables for the Indian Ministry of Defence (IMOD) recommenced during Q4.

Ava Group has recognised revenue for additional licences during Q4 of circa $1.3m, an increase of approximately $0.8m on previously announced guidance.

Senior Management Update
After joining Ava Group in March 2019 Mr. Scott Basham will retire from his position as Group CEO and Executive Director. Mr. Basham joined Ava Group to lead a transformation strategy to right size the cost base, optimise the operating structure of BQT Solutions, and drive top line sales growth and implement process changes within the sales and business development teams across the Group’s Technology Division. Scott also established a new division focussing on recurring service revenues. With the business returning to profits in FY20 and having largely completed its transformation exercise Scott leaves the Company in very good shape and well positioned for further success in FY21 and beyond.

David Cronin, Chairman of Ava Group said “Scott bought the drive and energy that we needed during the execution of our transformation strategy. Under Scott’s leadership, our revenues have grown, and we have returned the business to profits. A lot has been achieved during the past 16 months and we thank Scott for his valuable and important contributions and service to the Company, and wish him well in his future endeavours.”

Mr. Basham said “It has been a pleasure working with the Ava team, driving change and executing strategies to leverage their world class product portfolio. We have had a lot of wins in the past 16 months and I am pleased to move on to other challenges knowing that the Company is now in great shape to leverage off the strategy that has been implemented.”

As we strive to improve and optimise our business units the Board has worked closely with its senior management team to agree a change of management within its Technology Division. The position of CEO of Ava Group will be filled by experienced executive Rob Broomfield (current Technology Division COO), who will also continue to lead the Technology Division. Mr. Broomfield’s terms of employment are attached in Appendix A.

The Company’s realignment of having its Services Division report directly to the main board has worked well. The division is led by three of the most experienced people in the industry, with Mike McGeever as Chairman, Chris Fergus as CEO and Grant Angwin, Director and Senior Precious Metals Advisor.

For further information, please contact:

Rob Broomfield, CEO & Executive Director	Leigh Davis, CFO & Company Secretary
Ava Risk Group Ltd	Ava Risk Group Ltd
rob.broomfield@theavagroup.com	leigh.davis@theavagroup.com
+61 3 9590 3100	+61 3 9590 3103

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

About the Ava Group 
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision 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 as well as the secure international logistics (Ava Global) 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. 

Note 1
All figures for the financial year ended 30 June 2020 (FY2020) are unaudited and are management estimates only.

IMOD Contract Background:
Ava has received and accepted a Purchase Order for US$11.9m (A$17.0m) of licencing income from its in-country manufacturing partner, SFO Technologies Private Limited (SFO).

Financial Year ended 30 June 2020, Ava has recognised $5.0m in revenue against the IMOD contract.

Ava has received a US$2.1m (A$3.0m) Bank Guarantee from SFO as security for SFO payment obligations to Ava under the contract.

Post completion of the deployment of equipment into service with IMOD, Ava anticipates additional revenues will follow from a subsequent 7-year spares and maintenance contract for this project, which has an estimated value of a further US$3.4m (A$4.9m).

Further information on the IMOD project is available via previous market announcements (see www.asx.com.au)

Forward Looking Statements
Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

APPENDIX A

Key Terms Group Chief Executive Officer Employment Contract
Mr. Robert Broomfield is employed via an Employment Agreement with Ava Risk Group Limited on a permanent, full-time basis. Rob commences his position as Group Chief Executive Officer on 10 July 2020. His fixed remuneration is A$282,735 p.a. (inclusive of superannuation). He has a notice period of 4 months.

In addition to his fixed remuneration, Rob is eligible to participate in a performance-based incentive scheme and the Company’s performance share rights plan (PSR). For the 12 month period ending 30 June 2021, Rob will be entitled to a maximum bonus of up to 40% of his fixed remuneration being A$113,094 based on successful achievement of pre-defined KPI’s. The bonus (if any) will be paid 50% in cash (or shares at Rob’s election) and 50% as PSRs vesting equally at 12 and 24 months periods after the end of the FY2021 year.

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) today provides the following market update with respect to the large-scale supply of FFT’s SecureLink technology to protect data communications cables for the Indian Ministry of Defence (IMOD):

• Last 200 units from the first tranche of 600 (25% of total order) now completed
• FAT successfully completed
• Now awaiting shipment to end user

Ava is pleased to advise, that it has received notification that the remaining units from the last batch of 200 units have now been completed, and that the entirety of this batch has passed Factory Acceptance Testing (“FAT”). 

This means that all units of tranche 1 (~25% of the IMOD project) have been manufactured, and that all of these have successfully passed FAT.

Ava now looks forward to receiving notification of the shipment of these 200 units from it’s in-country partner’s warehouse, which will be the trigger to start the 120 days payment terms for the ~$1.5m value of this batch.

Ava Group CEO Scott Basham said: “Confirmation that all 200 units from the last batch of Tranche 1 have successfully passed FAT is great news, and further builds upon the earlier news we have received about the momentum really picking up again on this IMOD project.  With all COVID-19 related manufacturing backlog now cleared,  we’re looking forward to receiving confirmation of the balance of Tranche 1 leaving the warehouse so that we can start the timer on receiving our next ~$1.5m payment.”

For further information, please contact:

Scott Basham, CEO & Executive Director	Leigh Davis, CFO & Company Secretary
Ava Risk Group Ltd	Ava Risk Group Ltd
scott.basham@theavagroup.com	leigh.davis@theavagroup.com
+61 3 9590 3100	+61 3 9590 3103

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

About the Ava Group 
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision 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 as well as the secure international logistics (Ava Global) 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. 

Note 1
IMOD Contract Background:

The total contract value to Ava for this project is estimated at US$11.9m (A$17.1m).

All 600 units (~25% of project) have now been built by Ava’s in-country partner SFO: 

• The first 200 units passed FAT and shipped in late Dec 2019. 
• The second 200 units passed FAT in late Jan 2020 and shipped in May 2020.
• The last 200 units of this batch are now been completed, have passed FAT, and await onward shipping.

In H1 FY2020, Ava recognised ~US$1.0m (~A$1.5m) of the order, being ~US$0.9m (~A$1.3m) as top line sales revenue, and ~US$0.1m (~A$0.2m) as an income tax credit.  In Q3 FY2020 Ava recognised a further ~US$1.4m (~A$2.3m) as top line sales revenue and ~US$0.14m (~A$0.23m) as an income tax credit.  Whilst Ava will generate at least ~A$0.6m in additional revenues from the finalisation of this remaining batch of Tranche 1 in Q4 FY2020, given the COVID-19 disruptions and delays, Ava expects that the balance of this project will be recognised as revenue in FY2021. 

SFO’s Bank Guarantee to Ava for ~US$2.1m (~A$3.0m), tocover the 120 days payment terms remains in place.

Further information on the IMOD project is available via previous market announcements (see www.asx.com.au)

Forward Looking Statements
Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) today provides the following market update with respect to the large-scale supply of FFT’s SecureLink technology to protect data communications cables for the Indian Ministry of Defence (IMOD):

• Manufacturing recommences at SFO
• 196 of the final 200 units from the first tranche of 600 (25% of total) systems now completed
• Q4 FY2020 revenue to date of ~$0.6m

On 11 May 2020, Ava advised that the January 2020 backlog of 200 units had been shipped to the end user, confirming that payment of $1.5m for that batch would occur in early September 2020.

Today, Ava is pleased to advise, that after several weeks of COVID-19 related manufacturing restrictions, our in-country manufacturing partner SFO Technologies (“SFO”), has resumed its manufacturing operations, and has subsequently now completed manufacturing 196 of the final batch of 200 unfinished systems started in February 2020. 

This means that tranche 1 (~25% of the IMOD project) has largely now been manufactured. 

Revenue for the remainder of this batch, finished in May 2020 totals approximately $0.6m, and will be recognised in Q4 FY2020.

Ava now awaits manufacturing completion of the few remaining units in the batch, and confirmation from SFO of the Factory Acceptance Test date for this batch. Shipping of the batch to the end user is expected to occur thereafter.  Ava’s payment terms with SFO are 120 days from the date of shipping, and the value of this batch is ~$1.5m.

Ava Group CEO Scott Basham said: “The news today from our in-country partner SFO, that they have almost completed manufacturing the last remaining units from tranche 1 of the IMOD project, is significant for Ava. Not only does this mean that Ava can recognise a further ~$0.6m on the project now in Q4 FY2020 – which is great – but the fact that the production backlog has now been essentially cleared, also opens up the possibility for more new units to be built sooner than Ava Group originally anticipated. 

Obviously, this project is now clearly ramping back up at some speed, despite the continuing COVID-19 situation. I believe this positive confirmation coming out of India, and elsewhere recently, should be very encouraging for our shareholders, and validate for them that Ava Group is executing its plans, as outlined, and delivering on its commitments, as given. Ava Group has great momentum and a very exciting future ahead of it.”

Review investor presentation here.

For further information, please contact:

Scott Basham, CEO & Executive Director	Leigh Davis, CFO & Company Secretary
Ava Risk Group Ltd	Ava Risk Group Ltd
scott.basham@theavagroup.com	leigh.davis@theavagroup.com
+61 3 9590 3100	+61 3 9590 3103

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

About the Ava Group 
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision 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 as well as the secure international logistics (Ava Global) 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. 

Note 1
IMOD Contract Background:

The total contract value to Ava for this project is estimated at US$11.9m (A$18.5m).

Almost 600 units (~25% of project) have now been built by Ava’s in-country partner SFO: 

• The first 200 units passed FAT and shipped in late Dec 2019. 
• The second 200 units passed FAT in late Jan 2020 and shipped in May 2020.
• The last 200 units of this batch are now been completed, and await FAT, before onward shipping.

In H1 FY2020, Ava recognised ~US$1.0m (~A$1.5m) of the order, being ~US$0.9m (~A$1.3m) as top line sales revenue, and ~US$0.1m (~A$0.2m) as an income tax credit.  In Q3 FY2020 Ava recognised a further ~US$1.4m (~A$2.3m) as top line sales revenue and ~US$0.14m (~A$0.23m) as an income tax credit.  Whilst Ava will generate at least ~A$0.6m in additional revenues from the finalisation of this remaining batch of Tranche 1 in Q4 FY2020, given the COVID-19 disruptions and delays, Ava expects that the balance of this project will be recognised as revenue in FY2021. 

SFO’s Bank Guarantee to Ava for ~US$2.1m (~A$3.3m), tocover the 120 days payment terms remains in place.

Further information on the IMOD project is available via previous market announcements (see www.asx.com.au)

Forward Looking Statements
Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) is pleased to provide the following market update with respect to its Services Division, Ava Global DMCC:

• Ava has been awarded a 12 month contract with a Central Bank for the secure transportation of banknotes which will generate estimated annual revenue of $2.1m
• Additional new service agreements also executed with three (3) Commercial Banks, and one (1) other Central Bank
• These new agreements have helped increase Ava’s total addressable client spend now in Q4 FY2020 to in excess of $145m, an increase of 26% over the prior period.

It is estimated that the major buyers of secure logistics services spend in excess of $1bn per annum. With the recent consolidation of service providers in the secure logistics sector, Ava is expecting to continue to add new customers, and further increase its share of addressable client spend.

Chris Fergus, CEO Services Division, Ava Global, commented “Whilst the last few months have presented significant logistical challenges, Ava has been able to offer its existing clients a range of new and bespoke solutions ensuring their business continuity, whilst also continuing to increase our addressable market through new client agreements. During this period, our reputation as an innovative and leading service provider has continued”.

For further information, please contact:

Scott Basham, CEO & Executive Director	Leigh Davis, CFO & Company Secretary
Ava Risk Group Ltd	Ava Risk Group Ltd
scott.basham@theavagroup.com	leigh.davis@theavagroup.com
+61 3 9590 3100	+61 3 9590 3103

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

About the Ava Group 
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision 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 as well as the secure international logistics (Ava Global) 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. 

                                                                          

Forward Looking Statements
Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) today provides the following market update with respect to the large-scale supply of FFT’s SecureLink technology to protect data communications cables for the Indian Ministry of Defence (IMOD):

• 200 units in backlog since end January 2020 have now shipped to the end user
• 120 day payment terms will result in ~$1.5m cash being received by Ava in early September 2020

As previously advised on 04 May 2020, Ava Group’s major IMOD program had been disrupted by country-wide COVID-19 restrictions being enforced across India.  These restrictions had delayed equipment production and further Factory Acceptance Testing (FAT) by IMOD officials of completed systems.  The restrictions also stalled forward deliveries of finished goods that were awaiting dispatch which were held in the warehouse of Ava’s in-country manufacturing partner, SFO Technologies Pvt. Ltd (SFO).

Due to the critical nature of the project, Ava is pleased to advise that SFO has confirmed that shipments to the end user have now recommenced. The 200 units built in January 2020, and which had already passed FAT prior to COVID-19 restrictions, have now been shipped to the end user.  

Revenue for these units was recognised in Q3, at the time when Ava provided its software licences to SFO as part of the manufacturing process. Now that these units have been shipped, Ava will receive payment of circa $1.5m in early September 2020, in line with the agreed 120 days payment terms of the project.

Ava Group CEO Scott Basham said: “This news on the IMOD project getting back underway is tremendously encouraging and reflects the importance of our systems to the end user.  We know that our in-country partner SFO have been eager to come out of lockdown and get back to work on the project.  So, hearing this confirmation from them, that the ‘January batch’ of systems, that had been delayed in their warehouse during the lockdown, has now been shipped, is fantastic”.

For further information, please contact:

Scott Basham, CEO & Executive Director	Leigh Davis, CFO & Company Secretary
Ava Risk Group Ltd	Ava Risk Group Ltd
scott.basham@theavagroup.com	leigh.davis@theavagroup.com
+61 3 9590 3100	+61 3 9590 3103

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

About the Ava Group 

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision 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 as well as the secure international logistics (Ava Global) 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. 

Note 1

IMOD Contract Background:

The total contract value to Ava for this project is estimated at US$11.9m (A$18.3m).

More than 500 of the first 600 units (~25% of project) have now been built by Ava’s in-country partner SFO: 

• The first 200 units passed FAT and shipped in late Dec 2019. 
• The second 200 units passed FAT in late Jan 2020 and have been shipped to the End User.
• The last 200 units of this batch are under various stages of completion awaiting program progress delayed by COVID-19 restrictions.

In H1 FY2020, Ava recognised ~US$1.0m (~A$1.5m) of the order, being ~US$0.9m (~A$1.3m) as top line sales revenue, and ~US$0.1m (~A$0.2m) as an income tax credit.  In Q3 FY2020 Ava recognised a further  ~US$1.4m (~A$2.3m) as top line sales revenue and ~US$0.14m (~A$0.23m) as an income tax credit.

Whilst Ava does expect to generate at least A$0.5m in additional revenues in Q4 FY2020, given the COVID-19 disruptions and delays, Ava expects that the balance of this project will be recognised as revenue in FY2021.

SFO’s Bank Guarantee to Ava for ~US$2.1m (~A$3.2m), tocover the 120 days payment terms remains in place.

Further information on the IMOD project is available via previous market announcements (see www.asx.com.au)

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) provides the following market update with respect to a material order received today from the Australian Department of Defence (AU DoD):

• $2.4m order value
• Delivery schedule to commence May 2020
• Entire order to be delivered and recognised as revenue prior to 31 December 2020

Ava’s BQT Solutions has today received an order from the AU DoD for its high-security, custom encrypted, access control technology, for deployment across Defence facilities and bases located all around Australia. 

The order has been placed pursuant to a contract entered into with the Australia Governement which contains customary terms and condtions of supply.  Fulfilment of the order will progress rapidly, with the first of many batches of systems expected to be shipped in May 20.  The current expectation is that the entire order will be completed in H1 FY2021.

This order from the AU DoD is yet another affirmation of the suitability of our world-class products for large scale programs that require a close working relationship between the manufactuer, installers and end users.

Ava Group CEO Scott Basham said: “Receiving this order today from the Department of Defence for our BQT Solutions access control technology is excellent news.  BQT Solutions has had an enduring relationship with the our military, and has long been a provider of choice for advanced mission-critical technology solutions to protect vital national infrastructure.  This order also reflects the success of our efforts to focus on wining more strategic program sales with major government agencies and corporate entities all around the world.  When you look at the type and nature of the organisations who choose Ava’s technologies, you can immediately tell that we operate at the serious end of the security spectrum.”    

For further information, please contact:

Scott Basham, CEO & Executive Director	Leigh Davis, CFO & Company Secretary
Ava Risk Group Ltd	Ava Risk Group Ltd
scott.basham@theavagroup.com	leigh.davis@theavagroup.com
+61 3 9590 3100	+61 3 9590 3103

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

About the Ava Group 

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision 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 as well as the secure international logistics (Ava Global) 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. 

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) today provides the following market update with respect to its unaudited results for Q3 FY2020 and provides guidance for its expectations for Q4 and FY2020.

Q3 FY2020 $12.3m Revenue
Q3 FY2020 saw Ava Group’s 3^rd consecutive quarter of revenue growth, with the Company generating $12.3m (+89% over Prior Corresponding Period (PCP)), on an unaudited basis.

• The Services Division contributed $6.2m (+122% over PCP)
• Technology Division contributed $6.1m (+64% over PCP)
• The Group generated $1.1m in Net Operating Cashflows ($1.3m improvement on the previous quarter)
• At 31 March 2020 the Company had $3.7m cash at bank and no debt

Notably cash receipts from customers during Q3 did not include any receipts from the Indian MoD (IMOD) project.  The first payment from this project was received as expected during April 2020, for an amount of USD$0.9m (A$1.5m), in line with the 120 days project payment terms.

Services Division $6.2m Q3 Revenue
The Services Division’s strong revenue growth continued during the period, with revenues for Q3 exceeding A$6m for the first time.

• Addressable client spend increased 26% to circa A$145m
• Gross Margins averaged 19% for the quarter

The Services Division continued to provide a full service to all of its customers, despite the reduction in air freight capacity around the world due to COVID-19.

These restrictions allowed Ava Global the opportunity to innovate and offer a range of bespoke cargo and charter aircraft solutions to ensure that it could continue to deliver currency, precious metals and other valuable goods for its customers. 

Client activity has significantly increased during Q3, with the addition of both new clients, and a wider breadth of services offered as a result.  This has been ably facilitated thanks to the depth of skills and experience within the Services Division.

Technology Division $6.1m Q3 Revenue
The Technology Division also had a record Q3, spurred on by its FFT business unit, including the recognition of licence fees exceeding $2.3m from the IMOD project during the period. 

• Backlog at the end of Q3 exceeds $16m
• Gross margins averaged 79% for the quarter

This result was achieved in a period of increasing global uncertainty, during which time FFT’s major IMOD program was disrupted by country-wide COVID-19 restrictions being enforced in February, halting equipment production and forward deliveries of our systems.  It is presently anticipated that both production and deliveries for the IMOD project will resume within Q4.

While many other businesses and industries have had to close their doors at this time, both of the FFT and BQT manufacturing facilities, in Melbourne and Auckland respectively, have been able to remain open (in a somewhat more limited capacity) throughout the global COVID-19 lockdowns, meaning that production, shipping and delivery of orders has continued to occur. This has been a key factor in enabling such a strong revenue result from the core Technology businesses during Q3.

In addition to the continued manufacturing of our products, early March saw FFT’s new Aftermarket Sales Manager join the business. His immediate focus in Q3 was on the further refinement and deployment of FFT’s online remote technical support platform. This was particularly good timing for the business, given all of the various travel restrictions, quarantine and isolation measures in place around the world.  It consequently meant that FFT has been well positioned during the period to be able to capitalise on delivering online remote installation, commissioning and technical support capabilities to its customers during the lockdown. 

FFT also continued its marketing efforts of the Aura IQ conveyor health monitoring solution, with several “Proof of Value” Trials commencing around the world during the quarter.  The current value of Aura IQ qualified sales opportunities exceeds $49m.

BQT also had an improved quarter. In Q3, a new Master Distribution Agreement for the supply of BQT’s locking products to a leading international locking products wholesaler in Europe was completed, and the first stocking orders from them were received.

Guidance for Q4 and FY2020
While there are still some ongoing uncertainties due to the restrictions and challenges related to COVID-19 in many of the overseas markets that Ava Group operates in, including India and the United States, there are similarly significant opportunities as a result of the recent consolidation in the secure logistics market and the bespoke services currently being offered by the Services Division. The company is well placed for a solid Q4 and expects to achieve at least $10.5m revenue, which includes an estimated contribution of at least $0.5m from the IMOD project.

This should see a record H2 result of at least $22m revenue, leading to the Group achieving a record result of A$43m or more for FY2020.  Whist several variables may affect EBITDA, we are currently expecting EBITDA to exceed $5.0m for FY2020.

Review investor presentation here.

For further information, please contact:

Scott Basham, CEO & Executive Director	Leigh Davis, CFO & Company Secretary
Ava Risk Group Ltd	Ava Risk Group Ltd
scott.basham@theavagroup.com	leigh.davis@theavagroup.com
+61 3 9590 3100	+61 3 9590 3103

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

For further information contact: Leigh Davis leigh.davis@theavagroup.com

About the Ava Group 
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision 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 as well as the secure international logistics (Ava Global) 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. 

Note 1

IMOD Contract Background:

• Ava has received and accepted a Purchase Order for US$11.9m (A$18.3m) of licencing income from its in-country manufacturing partner, SFO Technologies Private Limited (SFO).

• YTD 31 March 2020, Ava has recognised $3.7m in revenue against the IMOD contract.
• Ava has received a US$2.1m (A$3.2m) Bank Guarantee from SFO as security for SFO payment obligations to Ava under the contract.
• Post completion of the deployment of equipment into service with IMOD, Ava anticipates additional revenues will follow from a subsequent 7-year spares and maintenance contract for this project, which has an estimated value of a further US$3.4m (A$5.2m).

Further information on the IMOD project is available via previous market announcements (see www.asx.com.au)

Forward Looking Statements
Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

• Positive operating cash flows of $1.1m for the quarter
• Consolidated net cash position of $3.7m

Ava Risk Group Limited (ASX: AVA), (“Ava Group” or “the Company”), a market leader of risk management services and technologies, today releases its cash flow report (Appendix 4C) and provides an update on the key areas of activity for the quarter ended 31 March 2020.

Click here to read the full announcement.

Principal Activities
Ava Group is a security services and technologies company, that develops and commercialises a range of high security perimeter and access control products to protect military, government, industrial and commercial critical assets and infrastructure. These products are sold through its Future Fibre Technologies (FFT) and BQT Solutions (BQT) brands. In addition, the Company operates Ava Global, its international secure logistics division, delivering clients with reliable secure delivery for bank notes, precious metals, and other valuables.

Key areas of activity during the third quarter of the 2020 financial year related to:

• Across the Ava Group, and outside of usual business activity, preparing for and dealing with the impacts of COVID-19 took significant time and effort during Q3.  The business took sweeping action to educate our employees and implement appropriate health and hygiene measures, including reducing the need for people to come into our offices across the globe, based on local conditions. The health and safety of our staff and customers remains a paramount priority for the business.

• The Services Division continued to provide a full range of services to all of its customers, despite the reduction in air freight capacity around the world due to COVID-19. These restrictions allowed Ava Global the opportunity to innovate and offer a range of bespoke cargo and charter aircraft solutions to ensure that it could continue to deliver currency, precious metals and other valuable goods for its customers.  Client activity has significantly increased during Q3, with the addition of both new clients, and a wider breadth of services offered as a result.  This has been ably facilitated thanks to the depth of skills and experience within the Services Division.

• For the Technology Division, both FFT and BQT implemented additional COVID-19 control measures to enable us to continue production at our factories, ship and deliver orders, and to provide service support to keep products running smoothly.  Early March saw FFT’s new Aftermarket Sales Manager join the business, with his immediate focus on the rollout of FFT’s online remote technical support platform. This was particularly good timing for us, given all of the various travel restrictions, quarantine and isolation measures in place around the world, and meant that FFT was well positioned during the period to be able to capitalise on delivering online remote technical support capabilities to its customers.  FFT also continued its marketing efforts of its Aura IQ conveyor health monitoring solution, with several “Proof of Value” Trials commencing around the world during the quarter.  During the quarter BQT also completed the signing of a new Master Distribution Agreement for the supply of its locking products to a leading international locking products wholesaler in Europe.

Commentary on Appendix 4C Cash Flow Report
Net operating cashflows in the quarter were positive $1.1m an improvement of $1.3m on the previous quarter. This was due to increased cash collections from customers compared the prior quarter, up $0.4m, and lower operating costs, down $0.8m compared to the prior quarter.  The Group also continued development of the Aura Ai and Aura IQ platforms, increasing its R&D spending and intellectual property spending during the quarter, compared to the previous quarter.  

Noticeably cash receipts from customers in Q3 did not yet include any receipts from the Indian MoD project.  The first payment from this project was received as expected during April, being an amount of USD$0.9m (A$1.5m), in line with the 120 days project payment terms.

At 31 March 2019 the Company had $3.7m cash at bank and no debt.

An update on guidance for Ava’s FY2020 forecast will be issued separately to this 4C.

ENDS.

Approved for release by the Board of Directors.

For further information, please contact:

Scott Basham, CEO & Executive Director	Leigh Davis, CFO & Company Secretary
Ava Risk Group Ltd	Ava Risk Group Ltd
scott.basham@theavagroup.com	leigh.davis@theavagroup.com
+61 3 9590 3100	+61 3 9590 3103

AVA Risk Group Limited (ASX: AVA) has been included in the Financial Times Top 500 APAC High Growth Companies 2020.

Making the list at number 313, this new accolade follows Ava’s inclusion in AFR’s Fast 100 announced last month.

Commenting at the time, Ava Group CEO Scott Basham said, “Ava continues to go from strength to strength, and this recognition is a testament to the successful implementation of our growth strategy for the group.”

Read the report here.

Download the report here.