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Ava Risk Group uncovers new opportunities for its fibre optic tech

September 30, 2020
Cat McLean

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Ava Risk Group uncovers new opportunities for its fibre optic tech

A main priority for many boards of large companies in recent years has been risk management, following a few embarrassing breaches and failures that have attracted a lot of media attention

A main priority for many boards of large companies in recent years has been risk management, following a few embarrassing breaches and failures that have attracted a lot of media attention

Ava Risk Group (ASX: AVA) is a risk management company with a large role to play in risk management with major organisations all around the world depending on them for their  technology and services. AVA reported very good revenue growth up nearly 50% over the prior financial year (PCP). The revenue for FY2020 is $46.1 million, with the highest growth area being the services division.

These strong growth results are partially due to AVA’s revenue model which generates revenue from a mix of services, products and licensing. Going forward, the company has a strong position in their customer base with a good product range, but they are also expanding that in terms of getting into further applications where the technology can be applied.

Ava Risk Group (ASX: AVA) is a group of three businesses that provide security services and technology to critical industries:

  • Ava Global is the services arm and manages security risks for currency, bullion and other high value assets in transport. 
  • Future Fibre Technologies specialises in unique fibre optic technology to secure property perimeters, pipelines and data networks from intrusions.
  • BQT Solutions provides technology for building security including biometric access control and smart locking.

 

“We’re achieving consistently high growth in revenues and profits because of product investments, operating cost consolidation, and improvement in our go-to-market,” said CEO Rob Broomfield in an interview with Reach Markets.

 

Aura IQ fibre optic technology, one of Ava Group’s flagship products, is helping to drive that growth and create new opportunities.

Ava Group is also deploying its fibre optic technology to improve the security of the Indian Army’s data network. The scale of the project is a world first in that space.

 

“That’s generating sizable revenues and profits because it’s mostly a technology licence deal. For the Indian Army program we expect about $11 million of revenue this financial year, and close to that in terms of profit,” said Broomfield.

 

Although initially marketed as security technology, Ava Group is now trialing Aura IQ as a conveyor belt condition monitoring system for the mining industry.

 

“Now we’re providing information from our sensor that can be used to better manage, optimise or maintain equipment or operations. That has huge savings in terms of scheduled maintenance, preventing breakdown maintenance and minimising damage to infrastructure associated with a breakdown,” said Broomfield.

 

Ava Group expects to complete the trials and commercialise the new application in the next six months.

“If adopted by one or two major mining companies, it will open up $50 million in opportunities to accelerate revenue,” says Broomfield.

Last week Ava Risk Group from CEO Rob Broomfield joined us for our ‘Meet The CEO’ Live Investor Briefing. You can watch a recording of the session below, or you can click here to book into our next ‘Meet the CEOs ‘ session.

 

Recorded on 23rd September 2020 at 12pm (AEST).


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