PriceSensitive

AVA Risk Group (ASX:AVA) announces $40.2m capital return and posts strong profit

Technology
ASX:AVA      MCAP $36.2M
30 August 2021 11:20 (AEST)

Ava Risk Group team members at Intersec Event. Source: AVA Group/Twitter.

Ava Risk Group (AVA) will return more than $40 million in capital back to shareholders, announcing a capital return and share buy-back.

The security risk management group also released its full year results on Monday, ending the year with an increased net profit after tax of $13.75 million.

AVA’s revenue grew by 41 per cent to $65 million, while earnings before interest, taxes, depreciation and amortisation jumped 116 per cent to $16 million.

The company had $17.3 million worth of cash in the bank at the end of FY21 and was cashflow positive with $17.58 million on its balance sheet.

It deployed its risk management services to customers in more than 100 countries and protected in excess of 3500 sites.

Since the end of FY21, AVA announced it would sell its Services Devision, AVA Global, for $63.1 million – leaving it with net cash proceeds of $42.4 million.

Once the divestment is completed, the business expects to hold $40.2 million in excess capital which it will hand back to shareholders via the $39.2 million capital return and $1 million buy-back.

The capital return will see shares priced at 16 cents each, while the full details of the buy-back will be released once shareholders and ATO approval is met.

AVA shares were trading 10 per cent up following today’s announcements, at 49.5 cents per share at 1:05 pm AEST.

Related News