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Quickstep (ASX:QHL) experiences 40pc increase in profit on back of sales growth

Industrial
ASX:QHL      MCAP $13.98M
27 February 2020 15:36 (AEST)
Quickstep (ASX:QHL) - Chair, Tony Quick

Source: Daily Telegraph

Quickstep (QHL) has tabled a 40 per cent increase in profits in the first half of the 2020 financial year off the back of an in increase sales.

The company manufactures composite solutions, primarily for the defence and commercial aerospace sector.

During the half, Quickstep pulled in $38.4 million worth of sales, a 14 per cent increase on the previous corresponding period.

This underpinned a net profit of $1.5 million, a $600,000 or 40 per cent increase from the first half of the 2019 financial year.

Quickstep’s EBITDA (earnings before interest, taxes, depreciation and amortisation) for the half was $4.2 million which equates to a $1.3 million year-on-year increase.

“The first half of FY20 has seen continued strong growth in sales, further evidence of sustainable profitability and continued customer confidence resulting in significant growth in our existing order book,” CEO and Managing Director Mark Burgess commented.

“Our bid and proposal pipeline represents a broad range of opportunities to deliver on the strategic objective of doubling defence revenue by 2025,” he added.

The company is confident it will achieve 10 per cent or greater year on year sales growth in the remainder of the 2020 financial year.

Shares in the company are trading steady, they’re currently worth 11.5 cents apiece.

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