Xtek Ltd - XTEK Provides FY20 Revenue Guidance Underpinned By Strong Performance

What happened?

What's happened?

XTEK Limited (ASX:XTE "XTEK") has announced that the Company expects to deliver FY20 revenue in excess of A$42m (unaudited). Also, XTEK has provided an update on its ballistics operations including the recent progress of the optimised XTEK manufacturing capability (including XTclave™).

What are the key highlights?

XTEK is pleased to advise it expects FY20 revenue to be greater than A$42m (unaudited). This represents at least 10% growth from FY19 revenue (FY19: A$37.9m). In addition, a shift towards proprietary products in FY20 has also supported improvement in gross margins.
XTEK has progressed the optimisation of the XTEK armour manufacturing capability from its XTclave facility in Adelaide. This production capacity provides the opportunity for XTEK to generate up to ~A$40m per annum in Adelaide, which represents a significant increase from the previous production forecast capacity of ~A$20m per annum revenue.
In addition to the Adelaide XTclave™ facility, XTEK plans to install a second machine in the US in the medium term, which together with other armour manufacturing systems could potentially contribute a further ~A$40m p.a.
Two fully utilised XTclave™ based facilities provide a revenue potential of up to ~A$80m from XTEK’s XTclave™ manufactured products alone and underpins the Company’s medium term objective of becoming a A$100m business.
Further order expectations remain high, with XTEK receiving positive feedback on multiple products to date.

For further information, please refer to the announcement linked below.

Managing Director's summary

Philippe Odouard Managing Director of Xtek Ltd has provided a statement.

Philippe Odouard

Managing Director, Xtek Ltd

“We are delighted with our strong financial performance in FY20, especially given the increased volatility and uncertainty in the recent trading period. In addition, we have also progressed the optimisation of the XTclave™ manufacturing capability, which has efficiently unlocked significant value by increasing our production capacity and revenue generation potential. We have the key pillars in place internally to build towards a A$100m business in the medium term, with a growing pipeline supported by our active and advanced discussions with potential customers, distributors and suppliers. The multiple ballistics opportunities on the horizon in the near to medium term, is further underpinned by the global market trend towards soldier survivability and expected increase in defence spend in key markets.”