Xtek Ltd - XTEK Ltd (ASX:XTE) report record half yearly revenue in 1H FY2020 results
Xtek Ltd (ASX:XTE)

XTEK Ltd (ASX:XTE) report record half yearly revenue in 1H FY2020 results

Highlights

What's happened?

Xtek Limited (ASX:XTE, "XTEK") released its financial results for 1H FY2020.

What are the key highlights?

  1. Achieved record half year revenue of ~A$16m in 1H FY20.
  2. Acquired and successfully integrated HighCom Armor Solutions Inc (HighCom) and subsequently launched three new ballistic products in the US at SHOT Show®, in January 2020.
  3. New XTclave™ manufacturing centre officially opened on 18 February 2020, to enable commercial production of XTEK’s advanced ballistic solutions.
  4. Secured long term SUAS support contract to the ADF, solidifying XTEK as a key, full-service SUAS supplier able to provide ongoing training, repair and maintenance services.
  5. Signed a Joint Statement of Strategic Intent with the Australian Space Agency and continued business from other value-added reseller products and services
  6. XTEK expects a stronger second half in line with the typical seasonality of the business, underpinned by a full contribution of HighCom, exports of XTclave™ manufactured products, planned and potential deliveries of further SUAS and increased training, repair and maintenance SUAS services.

What does this announcement mean?

Erik Bergseng CFA® from Mawson Graham provides perspective on this recent announcement.
Erik Bergseng CFA®
Written by Erik Bergseng CFA®
Published Feb 28, 2020

It has been a transformational period for XTEK. XTEK now have a significant U.S. distribution channel after completing the acquisition of HighCom Armour Solutions. They also now have a commercial grade XTclave manufacturing facility which could potentially produce up to US$20m in revenue per machine per annum when at full capacity. Because of this new production capacity and distribution, we think XTEK will be able to generate and fulfill new orders which will lead to an increase in higher margin revenue.

The information within this section has been provided by Mawson Graham Pty Ltd 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 Pty Ltd, its associates, officers, directors, employees and agents. Past performance is not a reliable indicator of future performance. Important Disclosure: Mawson Graham Pty Ltd, 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.
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Mawson Graham

Managing Director's Summary

Philippe Odouard

"The last 6 months has been transformational in building our development capabilities and growing our distribution network. In a period of significant investment, including the HighCom acquisition and investment in the new manufacturing centre, our underlying business continues to perform strongly. We are focused on commercialisation to maximise value of our technologies, with numerous strategic discussions and business development initiatives currently underway with key stakeholders globally. We are well positioned to deliver a strong performance in the second half, underpinned by the full contribution of HighCom, exports of XTclave™ manufactured products in the near term and planned delivery of value-added products and services."

Philippe Odouard
Managing Director, Xtek Ltd

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