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Ava Risk Group (ASX:AVA) up 29pc on half-year results

Technology
ASX:AVA      MCAP $37.69M
15 January 2021 06:02 (AEST)

Ava Risk Group (AVA) has reported record revenue and profit growth in the first half of the 2021 financial year.

Overall, the company’s sales revenue for the half-year came to over $35 million. This amount was approximately 70 per cent higher than that from the same period last year.

Ava Risk’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also showed significant improvement after exceeding $12 million for the half-year. This represented a growth rate of approximately 450 per cent, compared to the same period last year.

All Ava Risk Group business units were profitable for the half-year, with promising developments in both the services and technology divisions. 

In the services division, the company was awarded a contract in the wholesale banknote sector, worth over $1 million in annual revenue. Ava Risk will commence work on the contract sometime this month.

The company’s technology division continued to operate in spite of delays caused by restrictions related the COVID-19 virus. Ava Risk was still able deliver systems to both current and new customers, including deliveries for major defence programs. 

As of December 31, 2020, the company had approximately $13.4 million cash in the bank.

Ava Risk Group’s CEO, Rob Broomfield, commented on the company’s encouraging performance during a period of economic, social, and political turmoil. 

“Our record H1 FY2021 results have demonstrated that our streamlined and highly scalable cost structure, along with our diverse customer base and revenue streams, are able to show continued growth even in times as disruptive as the current global pandemic period,” he said.

The company’s share price has responded well to news of the half-year results. Ava Risk Group closed 29 per cent higher on Thursday, to trade for $0.64 per share.

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