Highlights

  • FY26 Revenue and other income fell to A$28.8 million from A$31.7 million as key orders slipped into FY27.
  • Net loss after tax narrowed to A$3.2 million from A$6.5 million, helped by lower Impairment charges.
  • Hale Capital invested A$7.0 million through convertible notes, with attached warrants potentially adding up to A$5.6 million.
  • Bryant Henson started as Group Chief Executive on 24 August 2026, leading a push into US federal and defence markets.

AVA Risk Group Ltd (ASX:AVA) enters FY27 with a sizeable carry-over of work and a new Leadership team focused on the US. The security and sensing technology group reported revenue and other income of A$28.8 million for FY26, the year to 30 June 2026, down from A$31.7 million, after about A$6.0 million of anticipated orders moved into the new financial year. The company said no material contracts had been lost or cancelled.

Margins Hold While Earnings Dip

Gross Margin held at 63%, unchanged on FY25 and within the company's 60% to 64% target range. Underlying EBITDA fell to A$0.1 million from A$2.1 million, while the net loss narrowed to A$3.2 million, reflecting impairments of A$1.1 million against A$5.6 million a year earlier and a A$1.8 million Fair Value gain on financial liabilities.

Order intake reached A$29.4 million, giving a book-to-bill ratio of 1.02 times, with a sales Backlog of A$6.8 million and contracted annual Recurring Revenue of A$2.6 million. Cash stood at A$6.7 million at 30 June 2026, while borrowings rose to A$6.3 million, including the Hale convertible note and related derivative liabilities.

US Expansion Becomes the Strategic Centrepiece

Hale Capital's A$7.0 million convertible note Investment is earmarked to support growth in the Americas, where FY26 order intake was A$6.2 million, led by corrections and government security. Bryant Henson, based in the US, began as Group Chief Executive on 24 August 2026, and Rear Admiral Terry McKnight joined the board in July 2026.

The company operates three divisions: Detect, built around Aura Ai-X fibre-optic sensing for perimeters, borders, pipelines and subsea assets; Access, covering biometric and access readers and electronic locks; and Illuminate, which supplies perimeter detectors and illuminators through OEM and distribution channels.

Project Pipeline Spans Airports, Rail and Borders

In Australia, perimeter intrusion detection trials were completed at Canberra and Cairns airports and began at Melbourne and Perth, with trials due to conclude in the first quarter of FY27. AVA was appointed to the Department of Home Affairs Border Protection Technologies Panel for five years from 1 July 2026, and completed a A$2.7 million fibre-sensing contract on an Indian energy pipeline. A Middle East border opportunity worth A$2.8 million has been delayed by regional conflict and carried into FY27.

FY27 Outlook Hinges on Converting Delayed Orders

Management expects FY27 performance to be significantly stronger than FY26, without giving numerical revenue or earnings guidance. Gross margin is expected to stay within 60% to 64%, with a broadly stable cost base. Priorities include converting the delayed orders, accelerating US growth, turning trials into multisite deployments and launching a refreshed BQT reader range in the first half of FY27.

The Detect pipeline was estimated at A$102 million of opportunities with expected closing dates before 30 June 2027. Shareholders met at the Annual General Meeting on 29 October 2026. Shares were priced at A$0.042 on 2 November 2026, up 2.44% on the day, valuing the company at A$12.23 million.