Positive results for AVA as outlined over the past 72hrs on the platform

Revenue lines and EBITDA margin expansion a real highlight as is the consistency of the growth across detect and access segments as well as positive first full half contribution by the illuminate segment.

Business momentum overall feels positive and view my holding in AVA to some degree as a defensive play in the current environment.

Two other areas caught my eye on the call and presentation

1. Focus on increased inventories which are up by 117% to $7,073million in the half compared to last year I see as both a defensive and proactive move to ensure if contracts are landed the ability to move promptly to bank the revenue will not be delayed due to inventory shortages.

• New CEO Mal Maginnes outlined the ability of AVA to not only grow revenues to $100million over the next 3-.5years but in doing drive EBITDA margins to over 25%. At the top end this equates to a lift in revenue of 200% but a operating cost increase of 100%. If executed will not doubt see strong upside to the MC. In the half just declared operating costs overall rose by 38% to $13,613m from $9,845m. The two biggest components of the operating costs in employee and raw materials rose 40% and 50% respectively.

Something to watch especially in driving to meet the aspirational results outlined of 25% plus EBITDA margins.

Disc. Top 5 positions held in RL and SM

Without repeating what other straws have posted I remain bullish with AVA risk.

Key reasons :

• Multiple ways AVA can grow revenue to $100m over next 3-5yrs.
• Ability to grow revenues to $100m over net 3years with little cost increases.

Add the rock solid balance sheet and dividend payout ratio of min 35% of EBITDA remains a top 5 position in my RL and SM portfolio

On the eve of the approval of the 0.03114c capital return and what i assume will be a quarterly business update i continue to top up at prices of 26-27cents.

Looking forward to see business updates and whether long awaited revenues are materialising.

Growth in revenue of 20%+ per annum will no doubt revalue AVA as the year unfolds and the fact its profitable goes well in these turbulent times.

Having endured the pull back in MP1 today the markets across the globe have no tolerance for subpar growth when prices of companies reflect growth targets of 20% plus.

AVA isn't valued in the same way and thus upside on positive news may occur as a result.

Keen to share my thoughts after catching up with the conference call AVA led by Rob Broomfield .

I was impressed at the calm methodical and reasonable method to the opportunities that present themselves for the group.

It's fair to say that a CEO with more of a marketing focus would be pumping up the opportunities that exist through the FFT division in the areas of the application fo sensors to daily life , mining as well moving into geographies such as latin america.

As shareholder on SM and real life it provides great confidence and trust in the future.

Rob approach allows buffer in terms of timing or setbacks as testing and development continues such the current situation with mining industry and integrating Aura IQ.

When you add the opportunities in the BQT division which is licensing based and requires minimal investment and risk but plenty of upside bodes well for the future.

Happy Holder and look forward to coming 1-5yrs....