• Group revenue of $17.0 million, up 20% on previous period
• Strong sales order intake of $16.3 million, driven by Detect segment
• Expansion in key industry verticals including border protection, airports, and transportation

Ava Risk Group Limited (ASX: AVA) ('Ava' or 'the Company') has announced its results for the six months ended 31 December 2024. The Group's revenue for the half was $17.0 million, up 20% on the previous corresponding period (PCP). Strong sales order intake of $16.3 million was driven primarily by the Detect segment, with a confirmed sales order backlog of $7.6 million, including $2.4 million in contracted annual recurring revenue, also up 20%. The order backlog consists of equipment orders and multi-year service contracts. The Company is focused on developing its sales opportunity pipeline in key industry verticals and growing its recurring revenue base. During H1 FY2025, repeat orders for Aura Ai-X, the Company's market leading fibre sensing technology, were fulfilled for protection of a critical European border, including the replacement of some competitor technology. Airport perimeter detection is an emerging industry vertical and sales orders were fulfilled for the deployment of systems at Dubai International Airport and a major North American airport. Consolidated gross margin grew to 64%, up 3% on the prior year, driven by an increase in higher margin Detect revenue. Operating costs stabilised following completion of the restructure during FY2024 and were $0.3 million lower than the prior year. The resulting EBITDA of $1.7 million was $2.6 million higher than PCP (1H24: EBITDA loss of $0.9 million). The Company had a cash balance of $4.7 million at 31 December 2024.

Based on expected sales pipeline conversion and the existing sales order backlog, management provides revenue guidance for the full year FY2025 in the range of $37.0 million - $41.7 million.

The Company is focused on improving its performance further through its sales order intake, its sales backlog and by increasing recurring revenue. The Company is also focused on maintaining high gross margins and expects to benefit from strong operating leverage as it scales.