- Ava Risk Group (AVA) has nearly completed the first tranche of its Indian Ministry of Defence contract, now that its manufacturing partner has recommenced operations
- Through the contract, the company is providing technology that protects the ministry’s data communications cables
- But earlier in the year, the company’s in-country manufacturing partner, SFO Technologies, was hindered by operational restrictions, due to the onset of the COVID-19 pandemic
- However, as SFO recommences its operations, the company has been able to complete 196 of the remaining 200 units under the first 600-unit trance of the contract
- Revenue from the 200 units being finalised amounts to approximately $600,000 while the entire defence contract is worth $18.5 million
- Ava Risk Group is up 3.13 per cent on the market today, trading for 16.5 cents per share
Ava Risk Group (AVA) has nearly completed the first tranche of its Indian Ministry of Defence contract, after its manufacturing partner recommenced operations in India.
Through the contract, the company is providing technology that protects the ministry’s data communications cables.
Ava Risk Group provides security technology solutions through Future Fibre Technologies and BQT Solutions.
However, the company’s in-country manufacturing partner, SFO Technologies, has recently been hindered by manufacturing restrictions, due to the onset of the COVID-19 pandemic.
But, with restrictions easing in the region, SFO has been able to recommence the producing the contract’s first tranche.
SFO began manufacturing the final 200 units of the 600-unit tranche in February and, after recommencing operations, the company has finished 196 units.
The 600-unit tranche amounts to around 25 per cent of the contract’s total work. Revenue from the 200 units being finalised amounts to approximately $600,000, while the entire defence contract is worth $18.5 million.
Ava Group CEO, Scott Basham is pleased SFO is on the way to completing tranche one of the deal.
“This project is now clearly ramping back up at some speed, despite the continuing COVID-19 situation,” Scott explained.
“I believe this positive confirmation coming out of India, and elsewhere recently, should be very encouraging for our shareholders, and validate for them that Ava Group is executing its plans, as outlined, and delivering on its commitments, as given. Ava Group has great momentum and a very exciting future ahead of it,” he said.
Scott went on to say that with the production backlog essentially cleared, the company can now potentially begin building new units sooner than anticipated.
Ava Risk Group is up 3.13 per cent on the market today, trading for 16.5 cents per share at 11:31 am AEST.