Ava Risk Group (ASX:AVA) Details Describing FY27 as a Year of Focus

Aditi Sarkar

29 October 2026 03:58 PM AEDT

Ava Risk Group (ASX:AVA) Details Describing FY27 as a Year of Focus

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Ava Risk Group (ASX:AVA) Limited , a supplier of security and critical-infrastructure technology including fibre optic sensing, access control and illumination, released the addresses and presentation for its 2026 annual general meeting on 29 October 2026. The documents describe a business the chairman and new chief executive want to reset around discipline and focus, while giving shareholders an early look at trading in the first quarter of FY27.

FY26 result in brief

The company said revenue and other income for FY26 was A$28.8m, with underlying EBITDA of approximately breakeven. Management said about A$6m of expected opportunities slipped into FY27 and that no material contracts were reported lost or cancelled. Within the group, the Detect segment generated A$19.3m of revenue and other income and A$2.43m of segment EBITDA, with an indicative revenue-less-materials ratio of around 73 per cent.

The presentation was frank about the weaker parts of the portfolio. It said earnings from Access and Illuminate were unacceptable in FY26 and must improve, and it flagged working capital and inventory management as areas needing attention. It also noted that a small number of large projects had driven the FY26 result.

Early FY27 trading and pipeline

For the first quarter of FY27 the company reported orders of A$6.7m, a book-to-bill ratio of 1.2 and a backlog of about A$7.2m. The Detect pipeline for FY27 was put at about A$87.9m, including carryover orders from FY26, with a further about A$89m of early-stage opportunities in later years and 13 opportunities above A$1m.

Readers should treat the pipeline with some care. The slide breakdown shows A$11.7m classed as high probability, A$23.1m in progress and A$47.0m at an early stage, which adds to about A$81.8m rather than the A$87.9m headline, and the chairman's speech refers to about A$87m. The pipeline also excludes Access and Illuminate, and the company noted that trials and reference installations do not guarantee orders or national rollouts.

Leadership change and priorities

Governance has shifted this year, and the presentation presents the changes as part of a wider effort to rebuild operating discipline. Rear Admiral Terry McKnight joined the board in July 2026 and Bryant Henson began as group chief executive in August 2026. The chairman described FY27 as a year of focus, with priorities of back-to-basics discipline, transformation, focus and accelerated growth. The chief executive said he would not make financial promises until systems and discipline are in place, and the company provided no numerical revenue or earnings guidance for FY27.

Dated milestones

The presentation lists a series of commercial milestones by quarter. In the first quarter of FY27 it points to an oil and gas pipeline deployment in India. In the second quarter it lists execution of a UniKey agreement and a five-year supply and co-development agreement with BQT. The Sydney Metro go-live and a United States border illuminator opportunity are shown for the second and third quarters, while the fourth quarter includes opening a United States office and an ASSA ABLOY supply arrangement for more than 100,000 container locks. These are targets rather than signed revenue, and several depend on counterparties, regulators or customer budgets, so timing could move.

Risks the company highlights

The company listed order timing as a key risk, noting that government budgets, trade restrictions and shutdowns can delay purchases. It also cited reliance on individual major programmes, long and complex procurement cycles, forecasting accuracy, conversion of delayed opportunities and the execution demands of a chief executive and board transition alongside United States expansion. The FY26 results briefing took place on 28 August 2026, and the AGM materials do not restate full-year accounts, so the figures above should be read alongside the formal results.

For shareholders, the practical test will be whether first-quarter orders and the stated backlog convert into revenue through the remaining FY27 quarters, and whether the dated milestones are met.

FAQs

Q: What did Ava Risk Group report?

A: Ava Risk Group used its 2026 annual general meeting to report first-quarter orders of A$6.7m and outline a transition under a new chief executive, without giving numerical guidance.

Q: What developments are outlined in the update?

A: For shareholders, the practical test will be whether first-quarter orders and the stated backlog convert into revenue through the remaining FY27 quarters, and whether the dated milestones are met.

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