Ava Risk Group Posts Record Q2 After Strong Access & Perimeter Sales.
Ava Risk Group Posts Record Q2 – Ava Risk Group has posted record Q2 sales of $A12.0 million, resulting in H1 sales order intake of $19.7 million, up 37 per cent on the prior year. Confirmed sales order backlog of $8.9 million, reflecting strong Q2 sales order intake. Most of the sales order backlog is expected to convert to revenue through the calendar year 2024 as key projects are delivered.
Strategically important orders received in Q2 relating to major infrastructure projects in Australia and Latin America and strong growth in new verticals in North America. Expected H1 FY2024 revenue of $14.2 million, within the guidance range. Second half revenue is expected to be substantively stronger than the first half.
“Our record sales performance in Q2 gives us great confidence in the outlook for FY2024 and beyond,” said Ava Group CEO, Mal Maginnis. “We are particularly pleased to have secured significant orders during Q2 on major infrastructure projects in Australia and Latin America, demonstrating the versatility of our market-leading fibre sensing technology.”
“Coupled with the strong performance in the access segment during Q1, we are demonstrating the benefit of the changes made to our commercial team and product offering over the past year to drive growth. While there is a lag in the conversion of sales orders to revenue, we are building a very solid confirmed sales order backlog in the Detect business, which will improve the predictability of future revenue. I believe we are well placed to continue our growth trajectory during H2 FY2024.”
Sales performance during Q2 was extremely strong, with confirmed orders of $12.0 million. The resultant sales order intake for the first half of $19.7 million represents a growth of 37 per cent on the prior year. Pleasingly, this includes significant growth in both the detect and access segments of 39 per cent and 80 per cent respectively, highlighting the progress on Ava’s strategy of expanding the sales pipeline in key markets and improving conversion rates.
Ava’s detect business Q2 sales order intake of $9.4 million contributed to a first-half order intake of $12.9 million, up 39 per cent on the previous year. The strong performance was underpinned by significant orders, including a major Australian transport infrastructure project ($2.3 million), and protection of a key pipeline at one of the world’s largest copper mines in Chile ($2.7 million).
Also contributing were orders across multiple market verticals in North America ($1.8 million), including securing correctional facilities and energy infrastructure. All are orders for the deployment of Aura Ai-X perimeter security solution.
In the access control business, a total Q2 order intake of $0.9 million saw a first-half order intake of $3.7 million, up 80 per cent on the same period last year. The significant increase is driven by stocking orders from dormakaba under its global framework agreement following the successful completion of product certifications for the Cobalt series locks in Q1. The fulfilment of existing orders was completed in early January, and Ava is working with dormakaba to ensure that the current orders move efficiently through its distribution network to drive further orders during H2 FY2024.
In the illumination business, Q2 order intake was $1.8 million, resulting in a first-half order intake of $3.1 million, in line with the prior year. Order intake in Q2 was 30 per cent higher than in Q1 and reflects an improvement in domestic orders in the U.K. and the continued focus on new export markets leveraging the company’s sales capability in Australia and North America. The company remains confident of growing orders in this segment during H2 FY2024.
At the end of Q2 FY2024, Ava Risk Group carried an order backlog of $8.9 million, which represents sales orders received that are still to be fulfilled. Of the backlog, $6.8 million relates to project delivery and is expected to convert to revenue during calendar year 2024. The remainder of the backlog relates to the provision of related services and multi-year service contracts.
“Ava Risk Group Posts Record Q2 After Strong Access & Perimeter Sales.”