AVA Risk Group has commenced an on market share buy-back.

Buy-back started: 15 Sep 2021

Proposed buy-back end date: 14 Sep 2022

100K of the proposed 23.5m shares have been bought back thus far.

AVA Risk Group reported FY2021 results:

• Revenue increased by 41% to $65.0m
• EBITDA improved by 116% to $16.0m ($8.3 million from FTT and BQT technology)
• 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  and divestment of Ava Global Logistics for ~A$42.4m in Oct 2021

Following up on Ricks post below regarding AVA Risk Group divesting its services division.

The services division is why the company is valued with low multiples in the market.

They seem to be on the right track to creating a more lean and tech-centric business.

Although, the services division generates a huge chunk of revenue for AVA; 18m but this only translates to a 3.8m EBITDA. We expect revenue to decrease in the upcoming year which would make the company look unatractive at first glance.

PE for 1H21 is ~6.8x (includes service division)

Estimated PE for FY21 would be ~12-14x (excluding service division)

Current market cap 104M

For FY2021, 17.2m in cash plus upcoming sale of services division of 42.4m after adjustments.

Disclosure: held