Company Report
Last edited 3 years ago
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ranked
#276
Performance (36m)
-2.0% pa
Followed by
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#Company Overview
stale
Added 3 years ago

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.