Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) today confirms that it has entered into a Sale and Purchase Agreement (“SPA”) with TTG Bidco Limited (“Buyer”), an entity backed by funds advised by Phoenix Equity Partners Limited (United Kingdom), to divest its non-core Services Division, Ava Global DMCC-LLC (“Ava Global”) (“Transaction“):
Sale price of US$46.4 million (A$63.1 million) with anticipated net cash proceeds of US$31.1 million (A$42.4 million) after closing adjustments, and payment of management incentives and FY2021 accrued bonuses
Net cash investment return to Ava Risk Group of circa 587%
Expected completion by the end of October 2021
Post divestment of Ava Global, Ava Risk Group comprises of leading security technology and sensing solution providers Future Fibre Technologies and BQT Solutions
Ava Risk Group CEO Rob Broomfield said: “We are pleased to crystallise our return on investment from Ava Global by implementing this Transaction. From a peak funding investment of US$5.3 million, Ava Risk Group will have received more than US$36.4 million (A$49.6 million) in cash from our Services Division, a net cash return of some 587% over approximately five years. The sale will allow management to fully focus on the Technology Division, growing recurring revenue and expanding into new markets and applications. An update of our growth strategy and policies around surplus cash will be provided when we report FY2021 results on 30th August.”
On behalf of the Ava Risk Group Board, Chairman David Cronin said, “We congratulate Chris Fergus and his management team at Ava Global for achieving an outstanding result for their stakeholders and wish them the very best in the next phase of their growth journey with the Buyer.”
Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) today advises that Group Chief Financial Officer & Company Secretary Leigh Davis has resigned and will leave the Company on 3 November 2021. Replacing Mr Davis in November will be Neville Joyce.
Ava Risk Group CEO Rob Broomfield said: “We would like to extend our sincere thanks to Leigh for the significant contribution he has made to Ava Risk Group over the past six years, in particular his management and leadership during the Company’s IPO in 2015 and our merger with MaxSec Group Limited during 2017. We wish him well with his decision to pursue a new career opportunity.”
We are pleased to be welcoming Neville Joyce, currently Senior Vice President Group Chief Financial Officer of Redflex Holdings Limited. In addition to his five years with Redflex, Mr Joyce brings extensive experience in leadership, management and strategic financial analysis having held senior finance positions with Origin and Energy Australia. Mr Joyce holds a Bachelor of Business and is CPA (Australia) qualified.”
On behalf of the Board, Chairman David Cronin thanked Mr Davis for his many years of service and for his contribution to the transformation of Ava Risk Group into the global, profitable company it is today. The Board welcomes Mr Joyce and is looking forward to benefiting from his ASX CFO experience as the Company enters its next phase of globalisation and growth.
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 security technologies and services to protect critical assets and infrastructure. Its Technology Division manufactures and markets ‘smart’ fibre optic sensing systems (Future Fibre Technologies) and high security access control and electronic locking products (BQT Solutions). Its Services Division provides secure logistics for high-risk valuables such as banknotes and precious metals (Ava Global Logistics). Its products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world.
Forward Looking Statements Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified.
All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.
All data presented in this document reflects the current views of the Company with respect to future events. Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.
To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward-looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.
Group Revenue forecast of $64.8m, above the guidance of $60-64m provided on 12 May 2021
Group EBITDA forecast of $14.8-15.8m, above the guidance of $13-$15m provided on 12 May 2021
Group Revenue forecast of $64.8m, up 41% on pcp[1] (FY20 $46.1m)
Group EBITDA forecast of $14.8-15.8m, up 100-114% on pcp (FY20 $7.4m)
Group EBITDA margin forecast of 23-24% compared to 16% in pcp
Strong financial position with consolidated net cash forecast of $17.0m and no debt
NB: All figures compare 12 months to 30 June unless otherwise indicated; FY21 forecasts are unaudited and in A$m
Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) today provides a trading update for the year ended 30 June 2021. FY2021 audited results will be reported on 30 August 2021.
Ava Risk Group CEO Rob Broomfield said: “We are pleased to report forecast FY2021 revenue and EBITDA at the top end of our guidance range, showing strong revenue and profit margin growth. Q4 FY2021 saw substantial growth in revenue and orders due to increased demand for remote services and technology to access devices, upgrades and maintenance support. The strong Q4 performance from the Technology Division was due to a pick-up in sales and orders from delayed COVID-19 deals – providing a solid foundation for FY2022. The Services Division continues to outperform as it has adapted to COVID-19 restrictions to ensure delivery of valuable goods for customers.
Group Revenue of $48.5m for the 9 months to 31 March 2021, up 48.2% on pcp[1]
Group Gross Margin of 52% compared to 49% in pcp
Group EBITDA of $13.1m, up 138.3% on pcp
Group EBITDA margin of 27% compared to 17% in pcp
Strong financial position with consolidated net cash of $11.7m cash and no debt
Q3 FY2021 affected by COVID-19 and weaker US dollar, partly offset by provision of innovative customer solutions, highlighting Ava Group’s diverse geographic footprint and product portfolio
FY2021 Guidance: Group Revenue of $60-64m and Group EBITDA of $13-15m[2] (FY2020: Group Revenue of $46.1m and Group EBITDA of $7.4m).
NB: All figures compare 9 months to 31 March unless otherwise indicated; unaudited financial information (A$m)
Ava Risk Group Limited (ASX: AVA) (“Ava Group” or “the Company”) today provides a trading update for the nine months to 31 March 2021 and FY2021 guidance. Ava Group is a global leader in risk management services and technologies through Future Fibre Technologies (FFT) and BQT Solutions (BQT) and a provider of international secure logistics services via Ava Global Logistics.
Ava Group CEO Rob Broomfield said: “Despite the challenges associated with COVID-19, Ava Group has continued to deliver solid financial results for the nine months to 31 March 2021 highlighting the merits of our diversified business model and world-leading product portfolio. This has allowed us to adapt to rapidly changing circumstances to deliver innovative solutions and effectively manage costs. The strong performance of the Services Division illustrates its growing reputation for excellence and the highly scalable nature of its operations.
During the March quarter, the Technology Division was impacted by ongoing international travel restrictions resulting in delays to a number of major security-related contracts. However, we have a strong pipeline of growth opportunities and are well positioned to take advantage of pent-up demand for our products and services, as vaccination programs are rolled out, and travel returns. Building on the significant milestones achieved this year, we are excited about the FY2022 outlook and the opportunities to provide our customers with the most advanced and affordable security and risk management solutions.”
Ava Risk Group Limited (ASX: AVA) (“Ava Group” or “the Company”) today provides its quarterly cash flow and activities summary for the period ended 31 March 2021. Ava Group is a global leader in risk management services and technologies through its Future Fibre Technologies (FFT) and BQT Solutions (BQT) divisions and a provider of international secure logistics services via Ava Global.
Ava Group CEO Rob Broomfield said: “Ava Group’s capital light operating model and strategies for delivering positive operating cashflow and EBITDA have resulted in another period of strong growth. Despite the uncertainty caused by COVID-19 in some markets, we have continued to provide our customers with world-leading technologies that ensure the protection and delivery of critical assets. In India, the rollout of our contract with the Ministry of Defence remains on track generating interest from other government agencies and highlighting the merits of our partner model.
We are also excited by the success of our “Proof of Value” trials for our innovative Aura IQ conveyor health monitoring solution which enhances mining safety and performance and represents an important opportunity for future growth. We continue to focus on developing our new multi-year comprehensive maintenance offering, leveraging cross-business opportunities via our strong customer relationships. The Services division continues to perform well growing its share of customer spend and winning new clients as it demonstrates the adaptability of our customer offering in rapidly changing circumstances.”
FFT Aura Ai-2 has been selected to protect the perimeter of a high security government facility located in North America.
Comprising both anti-ram palisade and high security chain fence, Aura Ai-2 is the perfect solution to protect this mixed medium perimeter and will be configured to provide a high level of discrimination and full cut resilience across the two different fence types.
According to the customer: Future Fibre Technologies brings the best of breed solution to the market and Ai-2 was specifically chosen because FFT has the most experience with perimeter sensing and locating technology. We compared a number of solutions and Aura Ai-2 was the best out of them all.
Congratulations to our US Sales Team on securing this recent contract win.
Ava Risk Group Limited (ASX: AVA) (“Ava Group” or “Company”) is pleased to announce that its world leading Aura Ai sensing solution has been selected to be deployed for a multi-site program to upgrade security at certain major rail facilities in South America:
Security upgrade program with total award value of more than US$1.40 million (A$1.84 million).
Multiple Aura Ai-2 systems will be fully integrated with the customer’s existing video management software and CCTV system.
First purchase order received exceeding US$0.47million (A$0.61 million).
Initial deployment at first sites in early Q4 FY2021 with the balance of sites expected for deployment before the end of Q4 FY2021.
Ava Group CEO, Rob Broomfield said, “FFT Aura Ai-2 was the solution selected, to protect the rail sites, due to our exceptional event classification capability, extended sensing distance, and cut resilience capability. A further key factor in the contract win was FFT’s previous success in protecting railway infrastructure and the company’s strong reputation across the broader transportation sector.”
Approved for release for and on behalf of the Board of Directors by:
Leigh Davis Company Secretary
About Ava Group The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT), and international secure logistics services division Ava Global, is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and 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 the secure international logistics and storage of high value assets. 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.
Our 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.
Note 1 Forward Looking Statements Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified.
All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.
All data presented in this document reflects the current views of the Company with respect to future events. Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.
To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.
The directors present their report together with the condensed financial report of the consolidated entity consisting of Ava Risk Group Limited (the Company) and its controlled entities (the Group) for the half-year ended 31 December 2020 and independent review report thereon. This financial report has been prepared in accordance with AASB 134 Interim Financial Reporting.
The names of the directors in office at any time during or since the end of the half-year are:
Name
Period of Directorship
D Cronin (Chairman)
Appointed 10 April 2018
M Stevens (Non-Executive Director)
Appointed 11 March 2015
M McGeever (Non-Executive Director)
Appointed 8 August 2018
R Broomfield (Executive Director)
Appointed 27 February 2008
S Basham (Executive Director)
Resigned 9 July 2020
The directors have been in office since the start of the financial period to the date of this report unless otherwise stated.
Review of operations
Highlights
Revenue from ordinary activities of $35.159 million for the 6 months to 31 December 2020 (HY2021):
72% increase on HY2020 ($14.713 million) with revenues up by $9.243 million in the Services Division. Perimeter Security and Access Control contributed an additional $5.470m of sales revenue with strong revenues from the Indian Ministry of Defence Contract (MoD) and the Australian Department of Defence, despite Covid-19 delays to underlying sales;
Licence fees from the Indian MOD project, have contributed $7.726 million of revenue and gross margin (HY2020: $1.343 million);
31 December 2020 sales orders backlog of $3.4 million (HY2020: $16.7 million), inclusive of the Indian MOD project.
Gross margin of 57% (HY2020: 49%) as a result of higher revenue margin in the International Valuable Logistics (Services) division and improved margins in the Technology division driven by favourable margin on the Indian MoD licence fee income.
Operating expenses excluding depreciation, amortisation and interest are $8.637 million (HY2020 $7.811 million).
Net profit from ordinary activities up to $11.028 million (HY2020: $0.942 million) driven by:
Increase of $4.020 million profit in Perimeter Security underpinned by the Indian MoD contract;
Strong demand for International Valuable Logistics services in the first six months contributing to an increase of $3.320 million profit in the Services Division; and
Access Control Solutions reporting a profit of $2.135 million as a result of 109% growth in revenue (HY2020: $0.611 million loss);
The Board declared a Special dividend of $0.01 per share, paid on 23 October 2020.
As at 31 December 2020, the balance sheet has net assets of $34.075 million (FY2020 $25.415 million) with no external debts or borrowings.
Events after the Balance sheet date
Dividends
On 29 January 2021, the Group announced a Special dividend of $0.02 per share on ordinary shares. The dividend has a record date of 10 February 2021 and will be paid on 10 March 2021.
Other than the changes noted above there has been no matter or circumstance, which has arisen since 31 December 2020 that has significantly affected or may significantly affect:
the operations subsequent to 31 December 2020, of the consolidated entity, or
the results of those operations, or
the state of affairs, subsequent to 31 December 2020, of the consolidated entity.
Rounding of amounts
In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts in the directors’ report and in the financial report have been rounded to the nearest one thousand dollars, or in certain cases, to the nearest dollar (where indicated).
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 in relation to the review for the half-year is provided with this report.
This report is made in accordance with a resolution of directors.
Ava Risk Group Limited (ASX: AVA) (“Ava Group” or “Company”) is pleased to announce that its world leading Aura Ai sensing product has successfully completed comprehensive Site Acceptance Testing at a major airbase located within a large Asian country and been selected to be deployed for a further 15-site program to upgrade security at certain major air force bases.
Multi-site security upgrade.
Initial purchase orders received exceeding US$0.55m (A$0.7m) for the next 4 sites.
Deployment at these 4 sites is expected during Q3 FY2021 with follow on orders anticipated for the remaining 11 sites during Q4 FY2021 and FY2022.
Ava Group CEO, Rob Broomfield said “Following a comprehensive evaluation and testing program and a competitive tender and trial process, our strong track record of providing world class security and assurance technologies has been reinforced by this large contract award with a highly respected defence end user”.
Approved for release for and on behalf of the Board of Directors by: Leigh Davis Company Secretary
About Ava Group The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT), and international secure logistics services division Ava Global, is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and 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 the secure international logistics and storage of high value assets. 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.
Our 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.
Note 1 Forward Looking Statements Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified.
All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.
All data presented in this document reflects the current views of the Company with respect to future events. Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.
To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.
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