AVA Risk Group Ltd (ASX:AVA) develops, manufactures and sells advanced risk management technologies (security and monitoring technology products) for perimeter intrusion detection and access control. Its key clients are high-value asset and critical infrastructure holders (including governments) and its offerings are deployed across ~3,500 sites in over 70 countries. AVA’s solutions encompass three segments/brands: (1) Future Fibre Technologies (FFT), a Melbourne-based manufacturer of advanced fibre optic based sensors (for application to perimeters, pipelines, conveyors, power cables, data networks); (2) GJD Manufacturing (GJD), a recently acquired UK-based designer and manufacturer of optical sensors and illuminators for perimeters; and (3) BQT Solutions (BQT), a New Zealand-based manufacturer of smart locking and access controls including high security cards and biometric readers. AVA underwent a notable strategic transition in FY22 with: (1) The October 2021 disposal of its services division (international logistics and storage for high-value assets) netting $42m proceeds with $39m (16.1 cps) subsequently distributed via special dividend/capital return; and (2) Increased focus on growing its higher-margin security technology product offerings (i.e. FFT and BQT) particularly in the US and Europe via market share gains, acquisitions (e.g. GJD), and entering new or adjacent markets (e.g. FFT’s ‘Aura-IQ’ condition monitoring solution received its first commercial order in July 2022). AVA has a three-year target of increasing revenue to $70m-$100m and a new policy to pay at least 35% of EBITDA in unfranked dividends annually. Meanwhile, CEO/Executive Director Rob Broomfield is retiring and will be replaced by Mal Maginnis (effective early-January 2023).
08 Nov 2022
Streamlined and focused on security tech products
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Streamlined and focused on security tech products
AVA Risk Group Ltd (ASX:AVA) develops, manufactures and sells advanced risk management technologies (security and monitoring technology products) for perimeter intrusion detection and access control. Its key clients are high-value asset and critical infrastructure holders (including governments) and its offerings are deployed across ~3,500 sites in over 70 countries. AVA’s solutions encompass three segments/brands: (1) Future Fibre Technologies (FFT), a Melbourne-based manufacturer of advanced fibre optic based sensors (for application to perimeters, pipelines, conveyors, power cables, data networks); (2) GJD Manufacturing (GJD), a recently acquired UK-based designer and manufacturer of optical sensors and illuminators for perimeters; and (3) BQT Solutions (BQT), a New Zealand-based manufacturer of smart locking and access controls including high security cards and biometric readers. AVA underwent a notable strategic transition in FY22 with: (1) The October 2021 disposal of its services division (international logistics and storage for high-value assets) netting $42m proceeds with $39m (16.1 cps) subsequently distributed via special dividend/capital return; and (2) Increased focus on growing its higher-margin security technology product offerings (i.e. FFT and BQT) particularly in the US and Europe via market share gains, acquisitions (e.g. GJD), and entering new or adjacent markets (e.g. FFT’s ‘Aura-IQ’ condition monitoring solution received its first commercial order in July 2022). AVA has a three-year target of increasing revenue to $70m-$100m and a new policy to pay at least 35% of EBITDA in unfranked dividends annually. Meanwhile, CEO/Executive Director Rob Broomfield is retiring and will be replaced by Mal Maginnis (effective early-January 2023).