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- Security logistics Ava Risk has weathered a 13.9 per cent hit in the Aussie share market today
- A mixed financial report by the company cited total revenue for the 2019 financial year at $15.5 million – which is $2.5 million below initial guidance
- In a positive light for the company, year-on-year revenue is expected for a massive 160 per cent growth at $31.5 million
- The company cited delayed distribution logistics contributing to the downgraded 2019 revenue, which will be expected in 2020’s financial earnings
Security logistics Ava Risk dropped 13.9 per cent today after the release of its 2020 guidance and 2019 profits.
Positively for the company, year-on-year revenue is expected to reach around 160 per cent growth – for $31.5 million.
However, total revenue for the financial year is lower than previous expectations, due to a number of mismanaged reasons. Ava management cited late orders in June and negative production timing in this morning’s media release.
In effect, the company’s Technology Division earnings are estimated for a total $15.5 million, which is $2.5 million below initial guidance.
The late orders are now expected to contribute for first quarter 2020 financial year earnings instead. A bulk of remaining backlog orders will also be delivered in the 2020 financial year.
These orders were for clients and partners in the US Government, Oil & Gas and two Middle Eastern aviation clients.
Ava’s revenue is chartered through three branches – BQT Solutions, Future Fibre Logistics and Ava Global Logistics.
Ava’s services divisions’ guidance for the just-passed final quarter of 2019 is an expected range of $16 million. This is a positive guidance.
The Ava Group did however report the first orders for the 2020 financial year have been received, for a major unspecified project in India.
Ongoing operation delays are still being experienced by Ava, as contractors complete a review of optic fibre networks.
Ava’s market cap is currently valued at $42.14 million.
