Ava Risk Group is a market leader of risk management services and technologies, trusted by some of the most security-conscious commercial, industrial, military & 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, storage of high value assets and risk consultancy services.

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. The 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.

The business is really an amalgamation of 3 different businesses (with different brands) playing in different parts of the market

1. Future Fibre Technologies

2. BQT Solutions

3. AVA Global logistics

Performance:

FY20

  Revenue: $46m (15% growth YoY)

  EBITDA: $7.4m

Q1FY21 

  Revenue: $17m (73% pcp) with

  EBITDA: $7.7m (!)

H1FY21

  Revenue: $35m

  EBITDA: $12m

Valuation

  Market-cap: $143m

  EV: $130m

  No debt, $13m cash

  EV/Rev < 3

  EV/fRev ~ 2 

Good video here with their new CEO:

https://www.youtube.com/watch?v=4Zkp99KH7nk

What I see: a well-run but poorly branded business, with valuable tech, demonstrating solid growth in a growth space (in our new 'geopolitical normal' security is going to be front & centre). I believe the market is mispricing this unloved, unsexy business/

2 obvious red-flags that require attention:

1. Customer concentration "Revenue from one customer in the International Valuable Logistics division amounted to $9.845 million (FY2019: $5.296 million) and revenue from one customer in the Perimeter Security division amounts to $4.962 million (FY2019: no customer greater than 10% of total revenue). " Annual Report 2020

2. Once-off nature of most of their revenue. This is something AVA are working to address it seems

AuraIQ is their newly launched product for 'conveyor belt health monitoring' using fiber-optic cable to sense and pick-up on changes in vibration patterns (predictive maintenance).

Was productized as a SaaS- $ license fee per-meter per-month.