On 7 May 2019, Ava Risk Group Limited (ASX: AVA) announced that it has received the first purchase order from the Department of Human Services (DHS) for BQT smart readers.
Last year, on 19 July, the company’s technology division was awarded a contract with the Australian Government for supplying BQT smart readers to the Department of Human Services (DHS).
BQT Solutions is one of the Ava Group company’s technology divisions and is also a market leader of the high-security card, as well as biometric readers and locks. Its high-security smart cards and biometric readers, for more than 10 years, have been trusted to protect access to some of the most critical government facilities in Australia. Also, for the various government facilities across the world, BQT has been selected as the provider of choice.
Under the contract, an estimated requirement would be for the provision of approximately 6,500 readers, as well as additional related equipment over a planned implementation period for approximately 2 years. The company expects that the estimated revenue over the period of the contract, at the anticipated volume, will be in the range of A$1.8 million to A$1.9 million.
Also, the Australian Government reserves the right at its absolute discretion to vary the requirements, as well as the implementation period. The terms and condition of the contract also include the high-security smart reader solution proposed by the company and accepted by the end-user, it would also be made available to the Australian government as part of the conditions of the tender and following contract award.
Mr Scott Basham, the CEO of AVA Risk Group, is confident about the comprehensive portfolio of innovative, high-security solutions of BQT smart readers, which has a potential to grow its footprints in government, as well as other key strategic sectors.
Further, the company announced the change of interests of its director Mr Scott Alexander Basham. The director acquired 100,000 fully paid ordinary shares at a value of $0.17 per share on 3 May 2019.
In the investor presentation report, published on 6 May 2019, the company highlighted that in its technology division, the gross margin of 65% in 1HFY2018 had increased to 68% in 1H FY2019.
During the 1H FY2019 period, the revenue from the ordinary activities of the Ava Risk Group was up by 95% to $16,689,000. The company made a significant loss of 1385% to $2,646,000. The total shareholders’ equity was worth A$19.906 million.
The company used A$0.535 million in its operating activities, A$2.091 million in its investing activities and A$0.141 million in its financing activities. As a result, the net decrease in the cash and cash equivalent during the period was $2.767 million. By the end of the 1H FY2019, Ava Risk Group had net cash and cash equivalent worth $3.094 million.
In the last one-year period, the shares of AVA have generated a return of 23.08%. At present, the shares of the company are trading flat at A$0.160 (as on 7 May 2019, AEST: 3:29 PM).
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