Xtek Ltd Company Profile
ASX:XTE

High growth potential via the commercialisation of revolutionary defence technologies.

Xtek is pursuing the commercialisation of its revolutionary carbon fibre composite technology, XTClave, for the global body armour market.

  • Company
    Xtek Ltd
  • Website
  • Sector
    Aerospace & Defense
  • Industry
    Aerospace & Defense
  • Code
    ASX:XTE
  • Socials

Company Overview

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Xtek Limited is a defence company that provides a variety of products and services including drone re-sales and maintenance, X-ray equipment, forensics, sniper rifles, and other defence products. Xtek are also commercialising two technologies called XTclave and XTAtlas.

XTclave is a carbon fibre composite technology which can produce components that are both light and strong. Potential products include Small Arms Protective Inserts (SAPI’s), or body armour, helmet shells and other components for potential space applications. The first commercial XTclave facility was established in Adelaide on the 18th February 2020.

XTAtlas is a piece of drone software that allows the streaming of geospatially accurate data in real time back to drone operators.

Xtek have also acquired a company called HighCom Armour Solutions (HighCom) in the U.S. The acquisition of HighCom is expected to serve as a launch pad for the commercialisation of XTclave into the lucrative U.S. market.

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Revenue Growth & Margin Growth

XTEK are continuing to pursue revenue accretive opportunities through the continued supply and maintenance of AE Aerovironment Wasps, while also pursuing margin expanding opportunities via the commercialisation of its wholly owned proprietary technologies.
Milestones

XTEK have finalised the construction of their first XTclave machine and have plans to establish an additional machine in the US.

Profitable

XTEK has a profitable underlying defence business that helps to underpin the commercialisation of high margin proprietary products.

Acquisition

Xtek have acquired U.S. based firm HighCom Armour Solutions, which will serve as a launch pad for the commercialisation of its XTclave technology

A Holistic Soldier Solutions Company

Xtek provide a suite of high value and complimentary front line solutions for defence, law enforcement and governments globally. Western defence spending is expected to hit $1.8 trillion.

Revenue Momentum

Xtek have a track record of successfully building revenues year on year, while also consistently producing positive EBITDA and net profit. Unaudited FY20 Revenues are in excess of A$42m and an improvement in gross margins is also expected due to an increase in proprietary products.

Latest Presentation

Click here to read the company's latest presentation

XTclave Commercialisation

The construction of a commercial grade XTclave machine in Adelaide was completed on the 18th February 2020. One XTclave machine at full production could produce up to A$40m in revenue p.a. after recent optimisations were made in July 2020. XTEK expects to open a new XTclave facility in the US in the medium term which supports the company's goal of creating a A$100m turnover business.

XTAtlas Technology

XTAtlas is a new first responder capability that provides the UAV operator with situational awareness by projecting the live video feed from a UAV onto any georeferenced imagery such as satellite maps. XTAtlas also provides the rapid production of fresh georeferenced maps, unlike traditional photogrammertry methods which can take hours to generate. XTAtlas has already received its first international sales.

Video Library

Click here to watch a video of XTAtlas in action

HighCom Acquisition

Xtek acquired U.S. based HighCom Armour Solutions on a 2.6x EV/EBITDA Multiple (excluding a potential earn-out payment). By retaining the key personell within the business, this acquisition will serve as a launchpad for the commercialisation of XTclave into the lucrative U.S. body armour market.

Other Products and Relationships

Clock icon Information current at 06 July 2020
This section contains information provided by Xtek Ltd, with the exception of any sections labeled as "risks". Although all due care has been taken, Mawson Graham ("SmallCapInsider") does not warrant the accuracy of the information provided in this section. It is not intended as an offer, invitation solicitation or recommendation with respect to the purchase or sale of any securities. The above information should not be relied upon as the sole representation of any matter that a potential investor should consider in evaluating Xtek Ltd. Its affiliates or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained above, and they do not accept any liability for any statement made in, or omitted from, the above. Prospective investors should make their own independent evaluation of an investment in Xtek Ltd. This information may contain forward looking statements concerning Xtek Ltd. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by Xtek Ltd, or on behalf of Xtek Ltd. Forward looking statements are based on Xtek Ltd's beliefs, opinions and estimates. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Company Videos

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Analyst Commentary

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XTClave progressing toward commercialisation & complimentary HighCom acquisition

SmallCapInsider
Written by SmallCapInsider
Published Jul 17, 2019

XTClave and XTAtlas both have large global addressable markets which gives the company blue sky potential upon becoming successfully commercialised. Each XTClave machine is expected to cost between US$2-3m and could be producing up to US$20m in revenues per machine per year when at full production. There are already about 15 potential customers that are in the sales pipeline of XTClave that are going through various stages of testing.

XTAtlas is a unique piece of drone software that is made possible by rolling together 3 pieces of technology. It has also already received its first international sales. Like all software, its important to start receiving sales because that proves that there is real market demand for the problem its solving.

XTEK have been generating some significant revenues driven primarily by the supply and maintenance of drones to the ADF. The drones that XTEK supplies are called AE Aerovironment WASPS. XTEK have the only repair facility for AE Aerivornment WASPS outside of the U.S. Because of that they are likely to continue maintaining these drones, which in turn could mean more contracted revenue in the future.

The acquisition of HighCom was highly complimentary and also came at an attractive price of being a 2.6x EV/EBITDA multiple. HighCom can also serve as a launchpad of the commercialisation of XTClave into the lucrative U.S. body armour market.

Key risks include, but are not limited to, the risk that XTClave is not able to be commercialised to its full potential, and the possibility that Xtek are unable to maintain its profitability in future years ahead as it has done for the previous 3 financial years.


The information within this section has been provided by Mawson Graham and is for general information purposes only and is not intended to reflect any recommendations or financial advice. The information in this section has been prepared without taking into account your objectives, financial situation or needs. For this reason, you should consider the appropriateness of the advice or recommendation in light of your own personal circumstances, relevant risk factors, the nature and extent of your risk of loss, as well as the legal and accounting consequences before acting making an investment or trading decision regarding any Financial Product mentioned herein. While it is believed that all information sourced and contained within this section to be accurate at the time of publication, liability for any errors, omissions, accuracy or completeness of the information (except any statutory liability which cannot be excluded) is specifically excluded by Mawson Graham, its associates, officers, directors, employees and agents. Past performance is not a reliable indicator of future performance. Important Disclosure: Mawson Graham, its directors, associates and employees advise that they may hold securities, may have an interest in and/or earn brokerage, investor relations fees, corporate fees, and other benefits or advantages, either directly or indirectly from client transactions arising from any information mentioned within this section and in documents published within this section.
Mawson Graham
Mawson Graham

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