AVA 0.00% 13.0¢ ava risk group limited

FY results and distribution agreements

  1. 2 Posts.
    The FY is over so here are my thoughts on FFT.

    At the end of FY16, the company did A$16.3M in revenue and a total operating loss of A$5.7M. After 3 quarters of FY17 they have chalked up a grand total of A$9.7M revenue and a net operating loss of A$2.8M. It's a safe bet to say they will pull in less money than the year before.

    Sales staff cost a lot - especially when they don't sell much. FFT's revenue since the float DECREASED at the same time as it DOUBLED its sales headcount. It's worth noting that the revenues reported by FFT are in Australian dollars yet they sell in US dollars. The dollar was at parity with the US when they floated so this company should have averaged a 20% boost to is A$ earnings if their revenues even if their sales were flat. Hoping the aussie dollar hits 50c is not an ideal business strategy. Given the company's first propectus dated 2 April 2015 predicted that revenues for FY16 would be A$32M, no jokes this may have been what they were hoping for. (For those with long memories this prospectus was replaced with another version two weeks later - without the A$32M FY16 number.)

    But the really puzzling thing about FFT are its distribution programs that distribute its Secure Point product. They have announced 3 companies so far: Anixter, WESCO and Minipa. Looking into these deals leaves me even more confused given the following:

    Anixter: Announcement of "global distribution deal" was announced to market in May 2016. However the Anixter website has never listed FFT as a supported manufacturer. Refer to https://www.anixter.com/en_us/manufacturers.html. When you search for "Secure Point" nothing comes up on their website. When I contacted Anixter by email twice claiming to have several sites in the U.S. that needed SecurePoint the response was 1) Anixter supplies SecurePoint in Australia and 2) FFT products are available in Australia only.

    WESCO: Made the announcement to the market in April this year. 3 months later and of the hundreds of manufacturers listed at https://buy.wesco.com/manufacturers, FFT does not appear. Search for Secure Point and nothing comes up.

    Minipa: The site is in Portugese but searching for anything on FFT or its products yields no results. Search for Secure Point and nothing comes up.

    3 different distributors. Same non-result. FFT makes an announcement about the distribution agreemenet yet the distributors make no mention of FFT.

    How on earth do distributors distribute without telling anyone what they sell? I'm just a sample size of one - am I missing something here? Can anyone else on this forum shed some light on these distribution agreements?
 
watchlist Created with Sketch. Add AVA (ASX) to my watchlist
(20min delay)
Last
13.0¢
Change
0.000(0.00%)
Mkt cap ! $37.71M
Open High Low Value Volume
13.8¢ 13.8¢ 13.0¢ $256 1.911K

Buyers (Bids)

No. Vol. Price($)
3 128237 13.0¢
 

Sellers (Offers)

Price($) Vol. No.
14.0¢ 12931 2
View Market Depth
Last trade - 16.10pm 01/11/2024 (20 minute delay) ?
AVA (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.