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|
|+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:
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.
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.