Ann: Appendix 4C - quarterly, page-7

They already issued FY guidance, on 25 June. I hear that Q1 of the new FY with the combined business is going very well so far.

If you put together the revenues from MSP and AVA from both their last quarterly updates, it's more than $10 million per quarter.


25th June 2018
FY18 Guidance & Outlook
Ava Risk Group Limited (ASX: AVA)
(Ava Group or Company) today provides the following market update:

• Ava Group revenue is expected to increase by 62%-77% year on year.
• FY18 Ava Group revenue is expected to be circa $20.9m-$22.8m, which includes a $7.8m contribution from MaxSec Group Limited (ASX: MSP) (7 months of consolidation).
• Adjusting for one-off exceptional costs related to the takeover of MaxSec Group Limited, the Technology Division is expected to be Operating Cash Flow positive in FY18 and EBITDA positive from the mid-point of the forecast revenue range within this document.
• Adjusting for one-off exceptional costs related to the takeover of MaxSec Group Limited, the Ava Group is expected to make an EBITDA loss of between $0.1m and $1.3m. This represents a substantial improvement on the $7.5m loss incurred in FY17, whilst also incorporating the loss-making MaxSec Group Limited.
• The Services division remains on target for profitability during Q1 FY19.
• H2 group revenue was below internal expectations due to Q4 shipment timing delays that will push revenue recognition into 1H FY19. This will provide a strong foundation for growth within the 1H FY19, with H1 backlog expected to be circa $1.6m-$3.5m at 30 June 2018.
• Given the significant progress in FY18, the backlog of orders to be executed in Q1 FY19 and the significant short-term pipeline (decisions anticipated before the end of FY19) of +$280m, the outlook for substantial growth in FY19 is very positive.
• Q1 FY2019 is expected to deliver $9.8m-$11.7m revenue, comprising $1.3m-$3.2m of Q1 backlog and $6.5m of new technology division orders under late stage contract negotiations