$AVA has announced a new contract by its Access segment.

ASX Announcement

Full text

BQT Solutions secures orders with key distribution partner dormakaba for new Cobalt series locks

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise that the Access division has secured the first major order for the supply of its new Cobalt series locks to dormakaba AV under its global framework agreement. The Company will supply over $1.3m of the new Cobalt 2 locks into North America with delivery expected to occur during Q1 and Q2 FY24. These orders demonstrate the market opportunity for the Cobalt series locks and highlight the strength of our key distribution partners. Cobalt locks deliver unmatched performance, outstanding durability and address two of the biggest issues in door locking - the ability to align a misaligned door and to release when requested, even with excessive load on the door.

Ava Risk Group CEO, Mal Maginnis commented: “We are pleased to expand our relationship with dormakaba to the North American market and appreciate their continued confidence in our products and our company. We view these orders as a testament to the quality and superior performance of the Cobalt series locks and are confident of further orders from our global distribution partners.”

My Observations

Another not-strictly-material announcement from $AVA, who are clearly making sure the market is aware of every significant sale.

That said, the Access segment is the smallest of the three segments with FY23 sales orders of A$3.9m, so the announced $1.3m order is a decent piece of business for the year for this segment, and you'd expect a similar quantum of new business each quarter if this segment is going to pull its weight.

Other positives are that the sales order is for the new Cobalt series of locks launched earlier this year, and the sale is via the dormakaba distribution partner into North America, demonstrating that the partner has got into action with the new product line.

So good news; however, as someone else here has commented, with the appearance being that any significant sales order is getting an ASX annoucement, periods of radio silence may generate concern with some holders. So that potentially puts $AVA on an announcement treadmill.

Disc: Held in RL and SM