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Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) is pleased to advise it has secured an additional contract for the supply and installation of a Fibre Optic Intrusion Detection System at a major North American energy facility. The order is for approximately US$0.4 million (A$0.6 million) and the supply of material is expected to be fulfilled in the first half of the current financial year.

This is the third critical asset at the same energy facility where Ava’s advanced sensing solution is being deployed, replacing a competitor’s technology. It builds on the successful installation of previous systems announced on 6 June 2022 and 16 August 2022, taking the total contract value to US$1.4 million to date. Further systems are also expected to be awarded as part of an ongoing upgrade program at the site.

Commenting on the contract, Ava Risk Group CEO, Rob Broomfield, said “It is pleasing to build momentum in the North American energy sector following our significant business development investment and given that we identified this as a key growth market. The fact that our sensing technology is replacing a competitor’s existing technology as part of an upgrade program demonstrates the strength of our sensing solutions in protecting critical infrastructure assets.”

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 three business segments – Future Fibre Technology (FFT), BQT Solutions (BQT) and GJD Manufacturing (GJD). 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. GJD is a specialist in the development and manufacture of perimeter detectors, illuminators, and ANPR cameras. 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 announce that Pietro Corsaro has been appointed to the newly created position of Vice President of Condition Monitoring Solutions, commencing on 1 November 2022.

The appointment of Pietro to this role will accelerate Ava’s growth in condition monitoring, including conveyor monitoring solutions as well as broader situational awareness applications.  Prior to joining Ava, Pietro was Vice President Sensing and CEO of NKT Photonics GmbH since early 2019, where he was heavily involved with Ava’s sensing technologies including successfully deploying our Aura Ai technology. Pietro held previous roles including Chief Technology Officer of Brugg Cable AG and numerous senior technical and commercial positions with Pirelli Cables (now Prysmian), where much of his work focussed on developing and promoting condition monitoring solutions.

Pietro holds a master’s degree in Nuclear Engineering and a PhD in Energetics both from the Polytechnic of Turin, Italy and is based in Germany.  His role is a key appointment to Ava’s Senior Management Team.

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 three business segments – Future Fibre Technology (FFT), BQT Solutions (BQT) and GJD Manufacturing (GJD).  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. GJD is a specialist in the development and manufacture of perimeter detectors, illuminators, and ANPR cameras.  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 Q1 FY2023 trading performance:

• Record sales order intake during Q1 of $7.8 million, including a two month contribution from GJD. This represents growth of 55% on the prior year, and growth of 28% excluding GJD orders.
• Acquisition of GJD Manufacturing, a leading UK based security technology supplier, on 1 August 2022. GJD provides Ava with a complementary product and technology portfolio with access to an established go-to-market capability in the U.K. and Western Europe.
• Receipt of the first commercial order for the Company’s conveyor monitoring solution during Q1.
• Continued strengthening of Ava’s senior management team with Mal Maginnis appointed to the role of Group CEO and Pietro Corsaro as head of Global Condition Monitoring Solutions.
• Management provides first half revenue guidance of $13.0 million to $15.0 million. Second half year revenue is expected to be stronger than the first half.

Ava Group CEO Rob Broomfield commented: “Ava Group has entered the new financial year with great momentum.  It is pleasing to note record sales order intake in Q1 for the combined FFT and BQT segments.  It is also pleasing to see the immediate impact that the addition of GJD has created, both in terms of sales order intake as well as complementing our product and technology offering. Our first commercial order for our conveyor monitoring solution from a leading conveyor manufacturer was a significant milestone for the Company and I am confident of additional conveyor monitoring orders during the first half of the financial year.

“The appointments of Mal and Pietro are a show of confidence in the strategic direction of the Group and will help accelerate the growth of the business.  This will be driven by the strength of our OEM and distribution channels, our condition monitoring solutions, the continued integration of GJD and growing our recurring revenue base.  Our first quarter performance demonstrates that we are positively progressing against these drivers.  Notwithstanding some potential lumpiness in product orders, I am confident that the business is well placed to continue its growth trajectory over the remainder of FY2023.”

Q1 FY2023 confirmed sales orders
The Company continued its strong upward sales trajectory during Q1 resulting in total orders received of $7.8 million.  Order intake during the quarter included $1.4 million relating to GJD for the two-month period since 1 August 2022.  The Group received orders of $6.4 million relating to the FFT and BQT divisions which is the highest quarterly order intake since the onset of the COVID-19 disruption.

Total order intake of $7.8 million represented 55% growth on the corresponding period in the prior year, and 28% growth when GJD orders are excluded.  Pleasingly, sales orders during the quarter included a number of strategically important milestones:

• The first commercial order for Aura-IQ from a leading global conveyor manufacturer;
• The first order for a combined FFT and GJD product solution for a Singapore based customer;
• Continued growth in the North American energy sector for the Group’s Fibre Optic Intrusion Detection Systems, with an additional two sites contracted during the quarter.

As at the end of September 2022, Ava carried an order backlog of $3.4 million which represents sales orders received that are still to be fulfilled.  It is anticipated that $3.0 million of the backlog will be fulfilled during Q2 FY2023.

Chart 1 – Sales Order Intake

Acquisition of GJD Manufacturing
As advised on 1 August 2022, Ava acquired a leading UK security technology supplier, GJD Manufacturing.  GJD is an award-winning security equipment developer and manufacturer, specialising in optical based intrusion detection systems.  It counts some of the UK and Europe’s most security conscious end users as customers and has a growing OEM channel across multiple sectors.

The transaction is an important driver of future growth and unlocks significant strategic value for both FFT and BQT, by providing a complementary product and technology portfolio while also providing access to an established go-to-market capability in the UK and Western Europe.  Ava received the first order for a combined FFT and GJD solution during the quarter, highlighting the opportunity for GJD to complement Ava’s existing solutions.

Appointment of Group CEO and head of Global Condition Monitoring
On 4 October 2022, Ava announced the retirement of Rob Broomfield and appointment of Mal Maginnis as its new CEO.  Mal will commence in this role in January 2023.  Mal brings extensive experience as a leader of global technology businesses with more than 35 years of experience in the defence, security, safety and technology industries.  He is exceptionally well regarded within the industry and will be valuable in strengthening the Company’s partnerships, developing strategic alliances and expanding Ava’s international sales presence.

After developing Aura-IQ over a number of years and successfully completing Proof of Value trials at multiple mine sites, the Company is well placed to accelerate growth in condition monitoring, including conveyor monitoring solutions as well as broader situational awareness applications. To this end, Ava is pleased to announce the appointment of Pietro Corsaro to the newly created position of head of Global Condition Monitoring Solutions.  Pietro brings more than 25 years of deep global expertise of the high voltage cable industry and condition monitoring technologies.  In addition he has a number of years direct experience of FFT’s Aura platform being applied to condition monitoring applications. Pietro will commence with Ava during November 2022.

The appointments of Mal and Pietro further enhances the Group’s skills and expertise and will help accelerate its growth ambitions.  The ability to attract such high calibre executives provides considerable confidence in the strategic direction of the Group.

Outlook
Based on the existing order intake and expected sales pipeline conversion, management provides revenue guidance for the first half year in the range of $13.0 million – $15.0 million.

Revenue guidance has not been provided for the full year at this time due to the uncertainty on the timing of product orders.  However, management expects that second half revenue will exceed the first half due to:

• Six-month contribution from GJD compared to five months during the first half
• Growth in OEM / distribution channel revenue
• Growth in condition monitoring orders based on successful proof of value trials and sales pipeline.

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 three business segments – Future Fibre Technology (FFT), BQT Solutions (BQT) and GJD Manufacturing (GJD).  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. GJD is a specialist in the development and manufacture of perimeter detectors, illuminators, and ANPR cameras.  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 Mr. Mal Maginnis will join the Company on 9 January 2023 as Chief Executive Officer, replacing Mr. Rob Broomfield, who will retire as CEO and Director. Mr. Maginnis will join the Board of Directors in due course.

Mal Maginnis is a seasoned leader of global technology-enabled businesses with more than 35 years of experience in the defence, security, safety and technology industries. Mal most recently served as President of Rapiscan Systems from July 2017 until September 2022. Rapiscan is a US-headquartered global manufacturer of security equipment and systems designed for checkpoints, cargo, vehicle, baggage, parcel and air cargo security inspection. Its FY22 revenues were US$662 million (circa A$988 million).

Ava Risk Group Chairman, David Cronin, said: “Having first met Mal more than 15 years ago, I am very confident that he is the right leader to drive the growth phase of our business. Exceptionally well-regarded within the industry, Mal’s extensive technology, security and defence experience as well as his business development skills will be most valuable in strengthening our partnerships, developing new strategic alliances and expanding our international sales presence. We believe his strong leadership experience will greatly enhance and accelerate Ava’s growth strategy.”

Prior to joining Rapiscan, Mal Maginnis was the head of Iveagh Technology a technology development company based in Singapore and one of the owners of SX Technologies, a Sydney-based detection company. He was also President of Smiths Detection, based in London, from 2011 to 2014. In his 14 years at Smiths, Mal held several other senior positions including Head of Technology, Programs and Products and also oversaw the global military and emergency responder business unit. He holds a Bachelor of Arts (Hons) degree from the Faculty of Military Studies, University of NSW and is a Graduate of the UK Command Staff College.

“I am proud and pleased to be handing the reins over to Mal, who brings significant industry and commercial experience to Ava,” said Rob Broomfield. “With our strong and scalable global growth platform in place the business will benefit from the direction of a very capable international industry leader. I will continue to support the company as much as is needed during the transition period and remain a committed shareholder of Ava.”

Rob Broomfield will retire when Mal joins as CEO on 9 January 2023, however will remain available to the Company via a consulting arrangement for up to 12 months.

“Over the past 17 years, Rob has made an enormous contribution to Ava in several important roles,” David Cronin added. Most recently, he led a significant reshaping of Ava’s technology related businesses, namely FFT and BQT, and was instrumental in commercialising multiple world leading technology innovations across the Group. He has successfully grown our international footprint, expanded the brand across multiple new platforms and overseen a wide-ranging reset of the core Ava technology business strategy. He was also at the helm of the company when we won the Australian Prime Minister’s Global Exporter of the Year Award. On behalf of the Board and management team, I would like to acknowledge Rob’s dedicated service and thank him for all of his exceptional efforts and achievements during his tenor at the Company.”

Commenting on his appointment, Mal Maginnis said: “I am very excited to be working with the team to execute their mission for growth. Ava is in a strong position with its world leading set of products, some of the very best blue-chip customers, and importantly, a dedicated and talented workforce that uniquely positions it to capitalise on the large and growing markets that its products address.”

A summary of the Key Terms & Conditions of employment are contained in the Appendix to this announcement.

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 three business segments – Future Fibre Technology (FFT), BQT Solutions (BQT) and GJD Manufacturing.  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. GJD is a specialist in the development and manufacturer of perimeter detectors, illuminators and ANPR cameras. 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

Appendix
Summary of Key Terms of Employment Agreement

Ava Risk Group Limited (ASX: AVA) (“Ava” or “the Company”) announces its financial results for the year ended 30 June 2022.

Review Annual Report
Review Appendix 4E
Review Appendix 4G and Corporate Governance Statement
Review Investor Presentation

Highlights

• Successful divestment of the Services Division in October 2021, resulting in net proceeds of $41.9m
• Cash distribution of $38.8m to shareholders during the year, via a capital return and special dividend
• 13% growth in total sales order intake of $18.0m compared to $15.9m in FY21 (excluding IMOD orders)[1]
• Group revenue and other income of $19.0m and Group EBITDA of $1.4m, driven by increased order intake for FFT. Underlying EBITDA of $0.8m when adjusted for the impact of unrealised foreign exchange variations
• Strong sales uplift in the US reflecting investment in business development capabilities
• dormakaba global framework agreement to distribute BQT products internationally
• First commercial Aura IQ order following successful completion of proof of value trials on operating mine sites
• Long-term support agreements for 52 systems, an increase of 48 systems compared to the prior year.
• Further development of Ava’s Machine Learning Capability to improve system performance for detection rates and reduce nuisance alarms
• Strong financial position with consolidated net cash balance of $15.2m (FY21: $17.3m) and no debt
• Post year-end acquisition of GJD manufacturing, with complementary product offering and growing OEM sales channel across multiple sectors

Ava produced a strong operational and financial performance in FY22, notwithstanding the protracted business interruptions related to Covid-19 and critical supply chain and project related delays. Sales order intake for FFT grew by 16% on the previous year, excluding the Indian Ministry of Defence (IMOD) contract, bolstered by significant investment in the Company’s business development capabilities. Ava continues to deploy FFT’s perimeter detection technology to critical infrastructure assets, with contracts secured for a large North American power plant and a European offshore windfarm during FY22.

The cash position of the Company remains strong with a cash balance of $15.2 million at 30 June 2022 (FY21: $17.3 million). Cash flow from operations of $2.3 million were supplemented by the proceeds from the disposal of the International Valuable Logistics business of $36.5 million, net of adjustments and transaction costs. Ava distributed $38.8 million to shareholders via a capital return and special dividend.

Ava Risk Group CEO Rob Broomfield commented: “It has been an important year for Ava with significant investment committed to accelerate growth. Following the divestment of our Services Division we have been developing our world leading fibre sensing and access control technologies to ensure we continue to grow our market share.

“The team has been working on system improvements to our Machine Learning to provide an even more compelling product proposition to our end customers. We have also been building our business development and sales capability, particularly in North America, and are already seeing positive results with our FFT sales order intake up by 16% with multiple new contracts, many in the energy sector.

“Ava Group is well placed to accelerate growth in the year ahead, with market leading technology in both our fibre sensing and access control markets, a strong balance sheet and the organisational capability to execute our plans. We will aggressively pursue opportunities in the perimeter security segment, leveraging our increased business development capability in North America, and we will continue to pursue long term support contracts with our existing customer base to grow recurring revenue. Following the financial year-end, we were excited to announce the acquisition of GJD, an important accelerator of growth for Ava.”

Group revenue and other income was $19.0 million, which was $6.3 million lower than the previous year (FY21: $25.3 million). The financial results in the prior year included licence revenues from IMOD of $7.8 million and government grants associated with COVID-19 support of $0.6 million. When adjusted for IMOD and government grants, revenue in FY22 grew by 12%, driven by increased order intake in FFT. Gross margin grew slightly to 65%, a pleasing outcome against a backdrop of significant supply chain constraints. Underlying EBITDA declined slightly reflecting the investment in sales and business development capability as well as increased marketing related expenditure post COVID-19.

Ava continued to develop its Machine Learning capability, which will improve system performance for detection rates and nuisance alarms. This will become a compelling feature of long-term support contracts to the existing customer base. At 30 June 2022 there were 52 systems signed to support agreements and the Company expects to further develop its support offering to grow this opportunity.

As reported during the year, significant progress was made on the development roadmap for Aura IQ, Ava’s condition monitoring solution. At the request of a leading global mining company, Ava completed integration with a fire detection fibre optic cable, which improves ease of deployment. A number of proof of value trials for Aura IQ were completed at operating mine sites, with the first commercial order for Aura IQ received in July 2022. The Company is well placed to progress the deployment of Aura IQ within the mining industry and will also look to expand the application to opportunities in adjacent markets such as telecommunications.

BQT revenue was impacted in Q1 FY22 by Covid-19 related lockdowns, particularly in the Australian market.  As these restrictions eased, performance of BQT improved substantially and it exited FY22 with significant momentum. The Company continued to develop smart locking solutions and signed a global framework agreement with dormakaba International GmbH, a global leader in security access control systems. BQT’s smart locking solutions are unique in the market and Ava will look to grow sales volume via channel partners. The first order under the agreement was fulfilled during FY22 with further growth expected from FY23.

The Company successfully navigated the challenges posed by the lingering business interruption associated with Covid-19 to ensure timely sales order fulfilment. The beginning of FY22 was impacted by lockdowns in Australia which negatively affected the timing of some orders and also impacted some proof of value trials for Aura IQ. The Company has been successful in securing critical components and managing supplier costs, however management expects this to remain a challenge in FY23.

In August 2022, Ava announced its acquisition of GJD Manufacturing, a leading UK security technology supplier and manufacturer specialising in intrusion detection systems. Its product offering is complimentary to FFT’s fibre-based intrusion detection systems and its channel management and proven go to market capability in the UK and Western Europe is complimentary to BQT’s presence in North America and the Asia-Pacific. The Company will use Ava’s existing capability to grow GJD sales in these regions while using GJD’s capability to increase FFT and BQT’s market share in the UK and Western Europe.

Investor webinar
Chairman David Cronin, CEO Rob Broomfield and CFO Neville Joyce will host a Zoom webinar to present the results at 11am AEST today. To register for the webinar, please select the following link:

https://us06web.zoom.us/webinar/register/WN_GE48bRGeSUKTAD40RJELlg

ENDS

Approved for release by the Board of Directors.

 For further information, please contact:

Investor Enquiries
Matthew Gregorowski
Citadel-MAGNUS
mgregorowski@citadelmagnus.com
+61 422 534 755

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 three business segments – Future Fibre Technology (FFT), BQT Solutions (BQT) and GJD Manufacturing.  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. GJD is a specialist in the development and manufacturer of perimeter detectors, illuminators and ANPR cameras. 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

[1] Excluding orders against the Indian Ministry of Defence (IMoD) contract

Ava Risk Group Limited (ASX: AVA) (“Ava Risk Group” or “the Company”) will release its financial results for the year ended 30 June 2022 on Monday, 29 August 2022.

Following the release of the result, Chairman David Cronin, CEO Rob Broomfield and CFO Neville Joyce will host a Zoom webinar to present the results at 11am AEST.

To register for the webinar, please follow the link below.

Date & Time:            Monday 29 August 2022 at 11am AEST

Registration Link:     https://us06web.zoom.us/webinar/register/WN_GE48bRGeSUKTAD40RJELlg

Approved for release by the Board of Directors.

For further information, please contact:

Investor Enquiries
Matthew Gregoroswki
Citadel-MAGNUS
mgregorowski@citadelmagnus.com
+61 422 534 755

 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 three business segments – Future Fibre Technology (FFT), BQT Solutions (BQT) and GJD Manufacturing.  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. GJD is a specialist in the development and manufacturer of perimeter detectors, illuminators and ANPR cameras. 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 further two contracts for the supply and installation of Fibre Optic Intrusion Detection Systems within the North American energy sector.  The combined order total is for approximately US$0.8 million (A$1.2 million).  The supply of material for both orders is expected to be fulfilled in Q1 FY23.

This builds on the contract announced on 6 June 2022, which was the largest energy sector sales order the Company had won, with an additional US$0.5 million contract secured for the same energy facility. Ava’s advanced sensing  solution is being deployed to a second critical asset within the facility, building on the success of the previous installation.

Ava has also secured an installation order for US$0.3 million at a different energy facility, highlighting the growing recognition of its leading detection systems across the sector.  Both orders provide further validation of Ava’s stated strategy of targeting critical energy assets and focusing on the North American market.

Commenting on the contracts, Ava Risk Group CEO, Rob Broomfield, said “We are extremely pleased to have won two significant orders in the North American energy market, reflecting the proven reliability and flexibility of our fibre detection system.  We have identified other critical assets in the sector which we believe are well suited to our market leading detection solutions and are aggressively pursuing these opportunities. It is also pleasing that we are reaping the benefit of the investment we made during FY22 to grow our presence and capability in North America, the world’s largest security market and our main target market.”  

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 today entered into a Sale and Purchase Agreement to acquire 100% of the shareholding of MTD Holdings Limited, the parent company of GJD Manufacturing Limited (“GJD”).  The Company further advises that completion has subsequently occurred today.

GJD is an award-winning, UK-based security equipment designer and manufacturer, specialising in security space detection and intruder detection systems. Its products include professional grade external detector equipment as well as infrared and white-light LED illuminators and Automatic Number Plate Recognition cameras. GJD counts some of the UK and Europe’s most security conscious end users as customers and has a growing OEM sales channel across multiple sectors, including well-known multinational engineering and technology companies.

Key transaction terms:

• £5.9 (circa A$10.25) million headline enterprise value
• £4.5 (circa A$7.82) million equity value purchase price to be paid 60% in cash and 40% in Ava shares
• Shares issued as consideration will be subject to a staggered escrow period, such that one third of the shares will be released after 12 months, one third after 18 months and the remaining third after 24 months.

The cash consideration will be funded out of Ava’s existing cash resources. Its cash balance at 30 June 2022 was circa A$15.2 million. Approximately 11.8 million consideration shares will be issued within Ava’s securities issuance capacity pursuant to ASX Listing Rule 7.1.

GJD FY2021 (year-end 30 September) highlights include:

• £4.6 (circa A$7.95) million revenue
• £0.92 (circa A$1.6) million EBITDA*
• Gross Profit Margin of 46%
• Domestic UK sales were approximately 50% and mainland Europe sales were approximately 37% (of total revenue). International and other revenue accounting for the balance of 13% of total sales.
• OEM sales, which include Automatic Number Plate Recognition camera technology, grew 50% from FY2020 to £1.9 million (accounting for 41% of total sales).

Commenting on the acquisition, Ava Risk Group Chief Executive Officer, Rob Broomfield, said “We are delighted to welcome the GJD management team, employees and shareholders to the Ava Group. The acquisition is an exciting opportunity to increase our global reach and access to new customers, particularly in the large markets of the UK and Europe. Our combined product portfolio is highly relevant to our respective end customers, and we can turbo charge their distribution by combining GJD’s go-to-market access with Ava’s current growth strategy. Importantly, this transaction represents significant strategic value for both FFT and BQT and is complementary to their existing growth initiatives.”

GJD Chairman, and major shareholder, Mark Tibbenham, said “Our strategic fit with Ava has been obvious for some time and we are very pleased to have found a world class home for GJD’s employees and customers. We will continue to capitalise on the growing global demand for our award-winning products. I am very excited to be a shareholder in Ava and about the value we can create as a combined business.”

GJD Products
GJD’s product offering falls into three categories:

Notice pursuant to Section 708A(5)(e) of the Corporations Act
This notice is provided by AVA Risk Group Limited (AVA) for the purposes of Section 708A(5)(e) of the Corporations Act 2001 (Corporations Act).

AVA today issued 11,807,894  fully paid ordinary shares (Shares) pursuant to the Sale and Purchase Agreement the subject of this announcement.  It is noted that the shares are issued in partial consideration (GBP1,802,000) of completion under the Sale and Purchase Agreement.

For the purposes of Section 708A(5)(e) of the Corporations Act, the Company gives notice of the following in respect of Shares:

1. The Shares were issued without disclosure to investors in accordance with Part 6D of the Corporations Act.
2. The Company, as at the date of this notice, has complied with:
   • the provisions of Chapter 2M of the Corporations Act as they apply to it; and
   • Section 674 of the Corporations Act.
3. There is no excluded information, as defined in sections 708A(7) and 708A(8) of the Corporations Act, as at the date of this notice.

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 three business segments – Future Fibre Technology (FFT), BQT Solutions (BQT) and GJD Manufacturing.  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. GJD is a specialist in the development and manufacturer of perimeter detectors, illuminators and ANPR cameras. 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

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