The AVA Risk Group Ltd (ASX: AVA) share price is climbing today after the company announced an air force contract win. In late morning trade, AVA shares are up nearly 4% to 62 cents. Here are the details.
What is AVA Risk?
AVA Risk Group is a global security and risk management business that uses world-class technology to assist its clients in protecting high-value assets in over 60 countries worldwide.
It specialises in the design, manufacturing, and distribution of fibreoptic intrusion detection systems, network security systems, and biometric access readers.
AVA is also involved in the protection of high-value assets, such as cash and precious metals, while in the transportation and storage process.
Contract details
In a brief announcement to the ASX this morning, AVA revealed its Aura Ai sensing product has successfully completed comprehensive Site Acceptance Testing at a major airbase located within an unnamed, large Asian country. As a result, the product will be deployed for a further 15-site program to upgrade security at certain major air force bases.
While light on details, AVA said the initial purchase orders received exceed US$0.55 million for the next four sites. The company expects the deployment at these sites to take place during the third quarter of FY21, with follow-on orders for the remaining 11 sites anticipated during Q4 FY21 and FY22.
Commenting on the announcement, AVA CEO Rob Broomfield said: “Following a comprehensive evaluation and testing program and a competitive tender and trial process, our strong track record of providing world class security and assurance technologies has been reinforced by this large contract award with a highly respected defence end user”.
This air force contract bolsters what’s been a strong six months for AVA, with a major contract win from the Indian Ministry of Defence providing the catalyst for a 170% share price surge.
For more reading on AVA, check out Patrick’s 3,000-word deep dive: Everything you need to know before investing in AVA Risk Group shares.
