What’s with the Ava Risk (ASX:AVA) share price today?

The Ava Risk (ASX: AVA) share price has flatlined near close of trade today. Let’s look at what the company announced its half-year report.

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The Ava Risk Group Ltd (ASX: AVA) share price has been edging higher for most of the day as the company announced its half-year results for the period ending 31 December.

But after opening at 58 cents this morning, shares in the infotech company are right back where they started at market close yesterday, now trading at 56 cents.

Let’s take a closer look at the company’s results.

How did Ava Risk perform?

In the first half of FY21, Ava Risk saw substantial increases across various key metrics.

The risk management services and technologies provider grew its ordinary activities revenue by 72% to $35.159 million. This was aided by the company’s services division which saw revenue increase by $9.243 million.

Moreover, perimeter security and access control contributed an additional $5.470m of sales revenue. Ava Risk reported substantial revenues from its Indian Defence contract and the Australian Department of Defence, despite COVID-19 delays.

The company’s sales orders backlog has fallen significantly, down from $16.7 million in HY20 to $3.4 million as of December 31, 2020.

Regarding the company’s margin, Ava Risk boasted an improved gross margin of 57%, up from 49% in the prior corresponding quarter (pcp). This was aided by improved margins in the technology division driven by the Indian contract deal.

For the half, operating expenses excluding depreciation, amortisation and interest were $8.637 million. As a result, the company made a net profit of $11.03 million.

As such, Ava Risk holds net assets of $34.075 million with no external debts or borrowings.

About the Ava Risk share price

Ava Risk offers a range of 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. Based in Victoria, the tech company has a market capitalisation of $135 million.

Ava Risk has declared a special dividend of 2 cents per share, to be paid on 10 March.

The Ava Risk Share price has performed well over the last six months, gaining 150%.

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Motley Fool contributor Daniel Ewing 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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