The Ava Risk Group Ltd (ASX: AVA) share price is 61 cents at the time of writing, up 11.93% so far today. This gain follows the release of Ava's preliminary first-half FY21 results.
What does Ava Risk Group do?
Ava Risk Group (formerly Future Fibre Technologies) is a risk management services and technologies provider. The group features a range of complementary solutions including intrusion detection and location for perimeters, pipelines and data networks, biometrics, card access control and locking as well as secure international logistics, storage of high value assets and risk consultancy services
Ava's clients extend across commercial, industrial, military and government sectors.
Ava Risk Group currently consists of three divisions: Future Fibre Technologies (FFT), BQT Solutions, and AVA Global Logistics.
Ava share price shoots up on strong financial results
Ava reported a FY2020 revenue of $46.1 million, a 46% increase over the previous corresponding period (PCP).
The first-half FY2021 unaudited revenue rocketed up a whopping 70% on PCP coming in at $35 million.
Ava also reported a first-half FY2021 net operating cash flow of $8.2 million. The company has already exceeded its FY2020 total generated cashflow, which was $6 million.
The financial statements further reflect an earnings before interest, tax, depreciation and amortisation (EBITDA) of $12 million. This is a dramatic improvement from the FY2019 EBITDA of negative $4.7 million.
The FFT division's $16.7 million contract with the Indian Ministry of Defence helped boost performance for the period. The contract is for the large scale supply of FFT's SecureLink technology to protect more than 40,000 kms of data communications cables.
Additionally, the Australian Department of Defence ordered $3.4 million worth of encrypted BQT readers during the period. The security devices will be deployed nationally across defence facilities and bases.
FY21 growth strategy and outlook
Ava's growth strategy is to address increasing global security concerns by driving increasing demand and rapid adoption of the company's high security technologies.
The company stated that it plans to invest and continue to grow profitable sales and service channels globally.
Ava's preliminary cash at bank total to help support funding growth activities was $13.4 million dollars as at 31 December 2020.
Ava claims to have a strong pipeline of projects coming up. The company believes that attractive industry fundamentals presently underpin future growth.
The Ava Risk share price has gone up more than 274% over the past 12-month period.
