Appendix 4D and 1H25 Financial Report

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Stock AVA Risk Group Ltd (AVA.ASX)
Release Time 25 Feb 2025, 8:14 a.m.
Price Sensitive Yes
 Appendix 4D and 1H25 Financial Report
Key Points
  • Strong sales order intake of $16.3 million driven by Detect segment
  • Confirmed sales order backlog of $7.6 million, including $2.4 million in contracted annual recurring revenue
  • Aura Ai-X technology underpins significant operating improvements in Detect segment
Full Summary

AVA Risk Group Limited reported a strong performance in the first half of the 2025 financial year, with revenue growing 20% to $17.0 million compared to the prior year. This was driven primarily by the Detect segment, which saw a 57% increase in revenue to $12.1 million. The company's Aura Ai-X technology has been a key driver of operating improvements in the Detect segment, enabling the company to fulfill repeat orders for critical infrastructure projects such as European border protection and airport perimeter detection systems. The company also grew its recurring service contract revenue by 20% to $2.4 million during the period. Overall, the improved financial performance was underpinned by growth in sales order intake, a strong order backlog, and the company's focus on increasing recurring revenue and maintaining a scalable cost base. This has resulted in a significant improvement in EBITDA, which grew from a loss of $0.9 million in the prior year to a profit of $1.7 million in the current period. The company remains focused on driving growth in key industry verticals, expanding its technology and commercial capabilities, and delivering improved financial performance.

Guidance

The company reported revenue of $17.0 million and EBITDA of $1.7 million for the half-year ended 31 December 2024.

Outlook

The company is focused on growing its sales order pipeline, increasing recurring revenue, and maintaining a scalable cost base to drive continued improvement in its financial performance.