Ava Risk Group Limited (ASX: AVA) Q2 FY2025 Trading Update
Strong Revenue Growth
Ava Risk Group Limited (ASX: AVA) announced expected revenue of $17.0 million for H1 FY2025, an increase of 20% compared to the previous year. This performance aligns with the company’s guidance range, and stronger revenue is anticipated in the second half of the fiscal year.
Positive Financial Outlook
The company reports expected positive EBITDA for H1 FY2025, supported by a stable and scalable cost base. Ava Risk Group continues to see strong sales order intake, with $7.4 million confirmed in Q2, resulting in a total of $16.3 million for the first half of the year.
Solid Order Backlog
The sales order backlog stands at $7.6 million, with $2.4 million representing contracted annual recurring revenue. This backlog includes equipment orders and multi-year service contracts, indicating a healthy pipeline for future growth.
CEO Comments on Progress
Mal Maginnis, CEO of Ava Risk Group, expressed satisfaction with the company’s progress in H1 FY2025. He stated, “Revenue has grown significantly, up 20% on the previous year, highlighting the improvement in our commercial team and the importance of our sales order backlog.” He added that the restructuring of the commercial team has stabilised the cost base, which is expected to drive improved EBITDA results.
Strategic Advancements and Sector Expansion
The company has made headway in strategically important industry verticals such as sovereign border protection, airport perimeter detection, and transportation. Recent orders include deployments for airport perimeter protection in Dubai and North America, along with expansion of contracts with UGL for the Sydney Metro project. The growing position in these sectors is expected to facilitate accelerated growth in H2 FY2025.
Upcoming Financial Results
Ava Risk Group will release its financial results for the half year ending 31 December 2024 on 25 February 2025. Further details regarding an investor webcast will be shared with the market soon.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.
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