Here’s why the Ava Risk (ASX:AVA) share price is surging today

The Ava Risk Group Ltd (ASX: AVA) share price is higher today following the announcement of a new contract. Here’s what you need to know.

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The Ava Risk Group Ltd (ASX: AVA) share price is lifting today following the positive announcement of a multi-base air force contract.

During mid-morning trade, the Ava share price shot up to an intraday high of 64 cents. However, shares in the risk management services and technologies company have since retraced to 61 cents, up 3.39%.

What did Ava announce?

The Ava share price is firmly in the green today after the company announced a major new contract award.

In its release today, Ava advised that it has successfully completed a comprehensive site acceptance testing using its Aura Ai sensing product. The evaluation and testing program took place at a major airbase within an undisclosed large Asian country.

In addition to the positive news, Ava revealed that it has further secured another contract with the same client. It noted that it has received instructions to deploy its security systems to 15 sites across selected major air force bases.

Ava highlighted that it has purchase orders of more than $0.7 million for multi-site security upgrades at 4 locations. The company stated that deployment at the initial sites is expected to start during the third quarter of FY21. The orders for the remaining 11 sites are anticipated to be undertaken during Q4 FY21 and into FY22.

CEO commentary

Ava Group CEO Rob Broomfield reaffirmed the company’s strengths:

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.

How has the Ava share price performed?

Over the past 12 months, the Ava share price has performed strongly, gaining close to 350%. The company’s share registered a multi-year low of 8 cents in March, before storming to a peak of 78.5 cents in December.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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