AVA Risk Group ASX:AVA

• Focussing on their Technology division now following AVA Global Logistics divestment. Technology division made up of BQT solutions and Future Fibre Technologies (intrusion detection for high value/critical infrastructure).
• Divested AVA Global Logistics in August 21, process completed October - proceeds largely returned to shareholders at 16c/share, rest of it used for shares buyback.
• High insider ownership - board owns ~ 45m shares.
• No debt, $17m cash.

Q1 FY22 update:

• FFT: Revenue 30% down vs FY21 quarterly average. Order uptake 43% higher vs Q421
• BQT: Affected by lockdowns.
• Expecting H1FY22 rev between $8.7-9.3m. VS H1FY21 $35m - Strawman has already posted on why the big drop.

Watching for any updates closely:

• Strong sales pipeline, growing backlog and increasing customer demand
• Generation of meaningful revenue from the partial conversion of the $50m sales pipeline (3-year value) for the Aura-IQ systems which are being commercialised via the “Proof of Value” program
• Expansion of sales capacity and revenues in the USA commenced with new America’s VP onboard
• Leveraging a go-to-market strategy with Dorma Kaba to deliver material sales in the US
• Increase in post-COVID-19 sales to Assa Abloy in Europe under our existing signed contract
• Further IMOD style licensing transactions • Further sales for powerline monitoring solutions via the Group’s low cost, high profit, industry partner model
• Increase in contracts from the large install base of thousands of systems to expand annual maintenance and remoting servicing solutions and grow annual recurring revenues.

Disclosure: Not a holder at the moment, technically looks like it may struggle to hold the $0.425 support level, so I am watching for an entry closer to $0.365.