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Update on Aura IQ
The Company achieved a significant strategic milestone in early July when it received the first commercial order for the FFT Aura IQ solution. The order, for the supply and installation of Aura IQ with a leading global manufacturer of conveyor systems, had been expected during Q4 FY2022 but was delayed pending internal procurement approvals with the end user. Receipt of the order was the culmination of a series of successful proof of value trials on operating mine sites.

Integration of Aura IQ with a fibre-optic fire detection system was completed at the request of a major global mining company during Q3 FY2022 and was successfully tested during Q4. Additional sales orders with the mining company are progressing through purchasing approvals and are expected to be finalised over the remainder of the 2022 calendar year.

FY2022 Financial Performance
Management provides full year revenue guidance for FY2022 in the range of $29.8 million to $30.2 million. Full year revenue from FFT and BQT is expected to be in the range of $18.7 million to $19.1 million.

Full year revenue guidance is slightly lower than the previously advised range of $31.3 million to $33.3 million due to a number of anticipated sales orders being delayed until Q1 FY2023.

Ava Risk Group will release its financial results for the year ending 30 June 2022 on Friday 26 August 2022. Details on an investor webcast will be provided to the market in due course.

ENDS

Approved for release by the Board of Directors.

For further information, please contact:
Investor & Media Enquiries
Alexandra Abeyratne
Citadel-MAGNUS
aabeyratne@citadelmagnus.com
+61 438 380 057

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT). FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise it has secured a contract for the supply and installation of its Aura IQ solution with a leading global manufacturer of conveyor systems.  The order is for approximately €0.2 million (A$0.3 million) and customs approval and delivery is expected to be finalised by the end of July.

Receipt of this order represents a significant strategic milestone in the development roadmap of Aura IQ, the Company’s condition monitoring solution for conveyor applications. It is the first commercial order for the FFT Aura IQ solution following the successful completion of a number of proof of value trials on operating mine sites.

Aura IQ is built on Ava’s Aura fibre optic sensing platform. The solution was initially developed with world leading mining research organisation, Mining3, and uses advanced analytics and acoustic detection via fibre optic cable to improve conveyor efficiency and safety.  It provides instant, real time information on the state of wear on conveyor roller bearings, helping to reduce downtime and the risk of major damage from failed roller bearings.  The solution provides an important alternative to existing conveyor belt fault detection methods, which are often manual and prone to error.

Commenting on the contract, Ava Risk Group Chief Executive Officer, Rob Broomfield, said “We are excited to receive the first commercial order for Aura IQ, our world leading fibre optic technology, which is the culmination of extensive product development efforts over a number of years.  In addition, securing the contract with a global conveyor manufacturer really validates the effectiveness of the solution and we continue to develop Aura IQ to expand its deployment into other applications.  Additional contracts, based on successful proof of value trials within the mining industry, are progressing through procurement processes and are expected over the remainder of calendar year 2022.”   

Approved for release by the Board of Directors.

For further information, please contact:

Investor & Media Enquiries
Alexandra Abeyratne
Citadel-MAGNUS
aabeyratne@citadelmagnus.com
+61 438 380 057

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT).  FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks.  BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group Limited (ASX: AVA) CEO, Rob Broomfield, will provide an introduction to Ava Risk Group as part of a Coffee MicroCaps forum tomorrow, Thursday 23 June at 9.00am AEST.

If you are interested in attending, please register via the Zoom Webinar link below. The presentation and Q&A will run for 30 minutes.

https://us02web.zoom.us/webinar/register/WN_b0L7vPdvRtKD_BHOWa7OlA

Review presentation here.

Investor Enquiries
Alexandra Abeyratne
Citadel-MAGNUS
aabeyratne@citadelmagnus.com
+61 438 380 057

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT). FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to provide the following update on its Q3 FY2022 Trading performance:

• Q3 FY2022 confirmed sales orders of $2.8m, resulting in year to date (“YTD”) sales orders of $13.0m (up 17% on the prior year, excluding prior year orders from the Indian Ministry of Defence (“IMoD”) contract)
• Confirmed sales order backlog of $5.0m of which $2.6m is expected to be fulfilled during Q4 FY2022
• Aura IQ successfully integrated with fire detection solution and purchasing approvals within the global mining company anticipated to be completed within Q4.
• BQT sales orders boosted by post lockdown recovery and anticipated acceleration of new dormakaba Global Framework Agreement
• Approval granted at Extraordinary General Meeting for return of capital of approximately $7.566m or $0.03114 per share
• Management reaffirms FY2022 revenue guidance of $31.3m to $33.3m due to a strong pipeline and expected performance in Q4.

Ava Group CEO Rob Broomfield commented: “Though Q3 was slightly quieter in terms of sales order intake, we remain confident in the quality of our sales opportunity pipeline and expected performance in Q4 and into FY2023.  In the near term, we look forward to receiving our first commercial order for Aura IQ following the successful integration of our conveyor monitoring solution with existing fire detection capability. We also continue to manage supply chain availability, particularly for components sourced from China.

During March, we exhibited at the ISC West Trade Show in the United States, one of the largest security trade shows in the world. After the trade show had been impacted by Covid-19 in the previous two years, this show reaffirmed our belief of significant growth in the sector. It was very successful in terms of reconnecting in person with our customer base for both the FFT and BQT segments as well as showcasing our enhanced solutions to prospective customers. For BQT in particular, the show provided an opportunity to meet with dormakaba’s global leadership team to accelerate implementation of the Global Framework Agreement signed in December 2021”.

Q3 FY2022 confirmed sales orders
During Q3 FY2022 the Technology Division received confirmed sales orders of $2.8 million, resulting in YTD sales orders of $13.0 million.  YTD sales order intake reflects growth of 17% on the prior year (excluding prior year orders from the IMoD contract), driven primarily by increased sales orders from FFT.  Sales orders received during Q3 were not as strong as the previous two quarters attributable in part to a seasonal slowdown in the US security market in January and slight delays in the timing of some expected orders.  Q4 has started strongly and the Company is confident that order intake in Q4 will align with the run rate during the first two quarters.

During Q3 FY2022 we increased the number of FFT systems signed to maintenance contracts.  As at the end of Q3, a total of 49 systems have been signed to maintenance agreements using the existing sales and support team.

The Company carries an order backlog of $5.0 million which represents sales orders received that will be fulfilled in the future.  It is anticipated that $2.6 million of the backlog will be fulfilled during Q4 FY2022.  The backlog does not include any additional sales orders under the IMoD contract, or sales orders expected to be received and fulfilled in Q4. As previously advised, the Company is not expecting any contribution from the IMoD contract in FY2022.

Chart 1 – Technology Division Sales Orders

Chart 2 – Sales Order backlog fulfillment (excluding IMoD)

Update on Aura IQ
As advised in February 2022, FFT has been requested by a global mining company to integrate its advanced conveyor condition monitoring solution with a fibre optic-based fire detection solution. Ava is pleased to advise that the qualification of Aura IQ with the fire detection fibre optic cable was successfully completed by the end of Q3.  Based on the successful integration, purchasing approvals within the global mining company have recommenced and are expected to be completed within Q4.

Testing of the integrated condition monitoring and fire detection solution is scheduled to commence with a second major mining company in May.  The outcome of the testing will result in qualification of the solution on underground conveyors. The integrated condition monitoring and fire detection capability continues to generate significant commercial opportunities for global partnerships to support the mining industry.

Update on Global Framework Agreement with dormakaba
As advised in December 2021, the Company signed a Global Framework Agreement with dormakaba for the supply of BQT products and services. During Q3, BQT received an initial stock order to provide inventory for the launch of BQT products across dormakaba’s global network. Planning is advanced with dormakaba for the global launch including appropriate training and supporting documentation for the product range.  The initial stock order is expected to be fulfilled in Q4, with subsequent orders to generate incremental growth into FY2023.

Return of Capital
Ava Risk Group Limited held an Extraordinary General Meeting (“EGM”) on 22 April 2022 where shareholder approval was sought for a capital return of $7.567 million or $0.03114 per fully paid ordinary share.  Shareholders approved the resolution, and the Company will return capital to its shareholders based on a:

• record date of 28 April 2022; and a
• payment date of 5 May 2022.

The Company also paid a special dividend of $0.13 per eligible share on 10 March 2022 (approximately $31.585 million).

Outlook for FY2022
Management confirms its full year revenue guidance for FY2022 in the range of $31.3 million to $33.3 million. Full year revenue from the Technology Division is expected to be in the range of $20.2 million to $22.2 million.  It is noted that the attainment of forecast revenue is contingent on the fulfilment of orders expected to be received during Q4 and that supply chains remain unimpeded. To date the Company has successfully managed supplier related issues though it is recognised that the environment continually changes particularly in light of recent lockdowns in some provinces in China.

ENDS

Approved for release by the Board of Directors.

For further information, please contact:

 About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT).  FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks.  BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to provide the following update on its 1H and Q2 FY2022 Trading performance:

• Reaffirming 1H FY2022 Guidance: Group Revenue of $20.2 million to $21.2 million and Group EBITDA of $2.2m to $2.5m[1]
• Strong financial position with consolidated net cash of $55.4 million and no debt at 31 December 2021
• COVID-19: Varied operational impact with delays in delivery and decision-making partly offset by the ability to provide innovative customer solutions, highlighting diverse global footprint and product portfolio
• Sustained momentum in sales order activity in the Technology Division through Q2 resulting in total sales orders of $4.9 million (year to date = $10.2 million)
• Completion of a Global Framework Agreement for the supply of BQT products and services with dormakaba International Holding GmbH
• Successful divestment of the Services division in October 2021, delivering cash proceeds of $41.9 million.

[1] 1H FY2022 guidance assumes no change to the exchange rate at 30 September 2021 with A$1 equal to US$0.74. 1H FY2022 guidance only includes an estimated contribution from the Services Division until 18 October 2021, reflecting the divestment date.

Q2 FY2022 confirmed Technology Division sales orders
During Q2 FY2022 the Technology Division received confirmed sales orders of $4.9 million, resulting in YTD sales orders of $10.2 million.  Order intake for Q2 continued Ava Risk Group’s recent market momentum and represents growth of 63% on the comparable period in FY2021 (42% growth on the prior YTD), driven by increased orders in FFT.

Pleasingly there has been significant growth in FFT sales order intake in the United States.  Total sales orders received in the U.S. during the first half of the year grew by more than 150% compared to the prior year, reflecting the additional investment that the Company has made in sales capability in North America.  Growth in order intake is also well balanced across key industry segments, with particular growth in military installations and solar farm applications.

At the completion of Q2, the Company carried a confirmed sales order backlog of $4.2 million (excluding the Indian Ministry of Defence (“IMOD”) contract).  The backlog reflects confirmed sales orders that are pending fulfillment.  The anticipated fulfillment of the sales orders is set out below:

The Company also maintains an order backlog under the IMOD contract for the licencing of further systems and fulfillment of a seven year maintenance program.  As advised via the ASX on 22 December 2021, due to COVID-19 related impacts, affecting the timing of certain government programs as well as extending global procurement times, the Company is not forecasting any material contribution to revenues in FY2022 from IMOD at this stage.

Global Agreement for the supply of BQT products and services to dormakaba International
At the end of December 2021 Ava Risk Group signed a Global Framework Agreement for the supply of products and services with dormakaba International Holding GmbH. Dormakaba is a global leader in the supply of security access control systems, locks and digital locking systems with sales representatives in 130 countries.

The agreement is effective from 1 January 2022 and enables BQT to sell its products in all jurisdictions in which dormakaba operates, including new markets in the United States and Europe.  An initial order for the provision of stock is expected by the end of January 2022.

Successful divestment of the Services division
As confirmed via the ASX on 19 October 2021, Ava Group completed the sale on its non-core Services division, Ava Global, to TTG Bidco Limited, an entity backed by funds advised by Phoenix Equity Partners (United Kingdom).

The Company received net cash proceeds of US$31.1 million (A$41.9 million) after closing adjustments and settlement of management incentives.  Financial results for the Services division prior to the divestment will be consolidated and reported in the Ava Group financial statements for the six months ending 31 December 2021.

Update on Return of Capital
The Company is still awaiting receipt of a draft Class Ruling from the Australian Taxation Office (“ATO”) prior to progressing the Return of Capital announced on 30 August 2021 and pursuant to Resolution 5 approved by the Shareholders at the Annual General Meeting on 28 October 2021. The Company will provide a further update in respect of the Return of Capital and associated timetable upon receipt of the formal response from the ATO.  The Company re-affirms its intention to distribute $39.2 million (circa 16 cents per share) to its shareholders.

Ava Group CEO Rob Broomfield commented: “During Q2, sales order intake remained strong underpinned by demand for FFT products and services.  COVID-19 continues to have some impact on both FFT and BQT, particularly on supply chains and access to international freight.  Nonetheless, the easing of travel restrictions in New South Wales resulted in an uplift in orders for BQT in November and we expect that momentum to continue into the second half of the financial year.

“Following the successful divestment of the Services Division in October 2021, the Group is focused on delivering its growth strategy in the Technology Division.  The sales opportunity pipeline is strong with a focus on recurring revenue, product licencing and Aura-IQ opportunities.  We continue to invest in our sales capability and the Global Framework Agreement with dormakaba opens access to new markets for BQT products.  Coupled with the existing sales order backlog, the Company is well placed to pursue growth in 2H FY2022.”

Ava Risk Group will release its financial results for the half year ending 31 December 2021 and outlook for the remainder of FY2022 on 25 February 2022.

ENDS

Approved for release by the Board of Directors.

For further information, please contact:

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT).  FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks.  BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise that it has signed a Global Framework Agreement for the supply of products and services with dormakaba International Holding GmbH effective 1 January 2022.

The global agreement enables BQT to sell its products in all jurisdictions in which dormakaba operates, including new markets in the United States and Europe.  During FY21, BQT recorded sales of $0.5 million with dormakaba in Australia, New Zealand and Canada.  The Company expects to grow this opportunity significantly commencing 2H FY22.

With representatives in 130 countries, dormakaba is a global leader in providing security access control systems, locks, master key systems and digital locking mechanisms.  The agreement with Ava Risk Group is testament to the high quality products which BQT manufactures with particular emphasis being placed on the patented Cobalt range of locks which resolve sideload and misaligned door issues.

Commenting on the agreement, Ava Risk Group CEO Rob Broomfield said, “Signing the Global Framework Agreement with an international leader such as dormakaba is a significant milestone and supports our strategy of expanding into new markets with our leading risk management technologies.  Planning is well advanced to ‘launch’ BQT products in new markets in which dormakaba operates, as well as to support joint marketing initiatives.  Sales under the agreement are expected to commence from January 2022.”

ENDS

Approved for release by the Board of Directors.

For further information, please contact:

About Ava Risk Group
Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates two business segments – Future Fibre Technology (FFT) and BQT Solutions (BQT).  FFT manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks.  BQT is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com