What has happened?
XTEK (ASX:XTE) announced their latest operation updates in a Finance News Network (FNN) conference presentation released today. The FNN conference provides an opportunity for XTEK to showcase its recent achievements, key investment highlights, strategy and outlook. Notably, XTEK’s commercial-scale XTclave™ at the Adelaide Manufacturing Centre has successfully validated the production of armour plates/helmets and achieved the required level of ballistic performance. Additionally, XTEK has recently commenced a full commercial launch across the US.
What are the key highlights?
- Despite a reduction in revenue for 1H FY21, XTEK’s shift to higher-margin products drove a record gross profit. XTEK hopes that the increased focus on investment and integration will set the Company up for increased future margins.
- The presentation sites the completion of the Adelaide Manufacturing Facility (AMC) and the successful delivery of 3/4 of XTclave™ to the Finnish Defence Forces. The presentation also touched on strong US performance with HighCom fully integrated, illustrating robust demand and expanding sales channels, including new export licenses and a 5-year NASPO manufacturing contract.
- The presentation also highlighted the actionable intelligence software that XTEK seeks to leverage via the C4 EDGE program for the Australian Army, with the first phase completed and a ~$1M contract secured as part of the next phase. Furthermore, the presentation highlighted that a commercial XTatlas order has been received and delivered to the Danish defence forces, paving the way for other NATO countries to start adopting the technology.
- Lastly, XTEK covered their advanced composite space solutions and highlighted how the XTclave technology provides the Company with unique technical advantages that can be leveraged into other applications and applied in new sectors, with space applications presenting an attractive opportunity.