Here’s why the Ava Risk (ASX:AVA) share price shot up 11% today

The Ava Risk Group share price shot up today following release of its half-year FY2021 results. Here’s a bit more about Ava and the update.
The post Here’s why the Ava Risk (ASX:AVA) share price shot up 11% today appeared first on The Motley Fool Australia. –

man jumps up a chart, indicating share price going up on the ASX bank dividend

The Ava Risk Group Ltd (ASX: AVA) share price is 61 cents at the time of writing, up 11.93% so far today. This gain follows the release of Ava’s preliminary first-half FY21 results.

What does Ava Risk Group do?

Ava Risk Group (formerly Future Fibre Technologies) is a risk management services and technologies provider. The group features a range of complementary solutions including intrusion detection and location for perimeters, pipelines and data networks, biometrics, card access control and locking as well as secure international logistics, storage of high value assets and risk consultancy services

Ava’s clients extend across commercial, industrial, military and government sectors.

Ava Risk Group currently consists of three divisions: Future Fibre Technologies (FFT), BQT Solutions, and AVA Global Logistics.

Ava share price shoots up on strong financial results

Ava reported a FY2020 revenue of $46.1 million, a 46% increase over the previous corresponding period (PCP).

The first-half FY2021 unaudited revenue rocketed up a whopping 70% on PCP coming in at $35 million.

Ava also reported a first-half FY2021 net operating cash flow of $8.2 million. The company has already exceeded its FY2020 total generated cashflow, which was $6 million.

The financial statements further reflect an earnings before interest, tax, depreciation and amortisation (EBITDA) of $12 million. This is a dramatic improvement from the FY2019 EBITDA of negative $4.7 million.

The FFT division’s $16.7 million contract with the Indian Ministry of Defence helped boost performance for the period. The contract is for the large scale supply of FFT’s SecureLink technology to protect more than 40,000 kms of data communications cables.

Additionally, the Australian Department of Defence ordered $3.4 million worth of encrypted BQT readers during the period. The security devices will be deployed nationally across defence facilities and bases. 

FY21 growth strategy and outlook

Ava’s growth strategy is to address increasing global security concerns by driving increasing demand and rapid adoption of the company’s high security technologies. 

The company stated that it plans to invest and continue to grow profitable sales and service channels globally.

Ava’s preliminary cash at bank total to help support funding growth activities was $13.4 million dollars as at 31 December 2020.

Ava claims to have a strong pipeline of projects coming up. The company believes that attractive industry fundamentals presently underpin future growth.

The Ava Risk share price has gone up more than 274% over the past 12-month period.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Ava Risk (ASX:AVA) share price shot up 11% today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!