AVA Risk Group's performance and strategy in focus

AVA Risk Group Limited (ASX: $AVA) has reported its consolidated interim financial report for the half-year ended 31 December 2023. Under the leadership of Mal Maginnis, the company has continued to pursue its strategy to grow revenue from its market-leading technologies by increasing market share and developing new and adjacent applications. The company achieved a record sales order intake during the first half of the financial year, reaching $19.7 million, reflecting a growth of 37% on the previous year. This growth was underpinned by the investment Ava has made in its technology and commercial capability.

Executive commentary on strategic achievements

Under the leadership of Mal Maginnis, Ava has continued to pursue its strategy to grow revenue from its market leading technologies by increasing market share and developing new and adjacent applications. The company achieved a record sales order intake during the first half of the financial year, reaching $19.7 million, reflecting a growth of 37% on the previous year. This growth was underpinned by the investment Ava has made in its technology and commercial capability. The company signed a supply agreement with Telstra, Australia's largest telecommunication provider and owner of Australia's largest fibre optic network, after successful product trials deploying the company's fibre sensing technology to Telstra's infrastructure. This agreement demonstrates the adaptability of the company's technology to adjacent applications such as telecommunications, opening significant new markets to Ava. The Access segment also experienced growth in sales order intake of 80% on the prior year, driven by the completion of product certifications for the Cobalt series locks, resulting in stocking orders from dormakaba under its global framework agreement. Ongoing development and investment in technology remains at the centre of the company's success, with the latest generation fibre sensing technology, Aura Ai-X, critical to Ava's success in key large-scale contract awards. The company's financial performance for the first half was subdued, primarily driven by lower than expected revenue, particularly in Q1. However, Ava is well placed to pursue revenue and earnings growth in the second half of FY2024, with strong catalysts for growth in each operating segment and strengthened relationships with key partners.

Summary of financial performance and outlook

AVA Risk Group Limited has reported a record sales order intake during the first half of the financial year, reaching $19.7 million, reflecting a growth of 37% on the previous year. The company signed a supply agreement with Telstra, Australia's largest telecommunication provider, and achieved significant growth in the Access segment. However, the financial performance for the first half was subdued, primarily driven by lower than expected revenue, particularly in Q1. The company recorded a net loss for the period of $2.3 million, reflecting lower EBITDA. Despite this, Ava is well placed to pursue revenue and earnings growth in the second half of FY2024, with strong catalysts for growth in each operating segment and strengthened relationships with key partners. The company's ongoing development and investment in technology, along with its strategic achievements, position it for potential growth and success in the future.