- Quickstep (QHL) has reported a 44 per cent increase to $3.9 million in statutory net profit after tax (NPAT) for the 2020 financial year
- Quickstep is an Australia-based manufacturer of carbon fibre composite for the aerospace and defence industries
- The company also saw a 12 per cent increase in sales revenue, attributable to its military aerospace program, increased product volumes and a new business in Geelong
- Quickstep spent around $6 million on investment activities which led to increasing its net bank debt by $6.1 million
- On the back of these results, current Chairman, Tony Quick announced he will retire from the board from September 1
- Current Non-Executive Director, Patrick Largier will replace him
- Company shares ended the day with no change, trading flat at 8.6 cents
Quickstep (QHL) has reported a statutory net profit after tax (NPAT) of $3.9 million for the 2020 financial year which represents a 44 per cent increase on the prior year.
Quickstep is an Australia-based manufacturer of carbon fibre composite for the aerospace and defence industries.
The company announced a 12 per cent increase in sales revenue from $73.3 million in FY19 to $82.3 million in FY20.
The sales growth can be attributed to growth from a F-35 program, increased volumes for C-130 wing flaps and a new commercial business for its Geelong site.
The F-35 program is the largest military aerospace program in the world, supplying more than 30 individual components with content on every aircraft produced.
Statutory earnings before interest and taxes (EBIT) also improved by $0.7 million from $3.9 million to $4.6 million after including a $0.5 million one-off restructure charge.
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $8.8 million for FY20 which is a significant increase from the $5.8 million achieved in FY19.
Quickstep reported spending $6 million on investing in the flare house manufacturing facility, increasing capacity and improving operational efficiency. To fund this capital spend, the company’s net bank debt increased by $6.1 million.
Quickstep claims it was resilient during COVID-19 supply chain challenges. The company managed this by keeping up with volume growth and delivering its services and solutions to customers on time.
At the end of the 2020 financial year, Quickstep had roughly $1.69 million in cash compared to the $7.33 million it started with.
Chairman’s retirement
Today, the company also announced its current Chairman, Tony Quick, will retire from the board effective on Tuesday, September 1.
He has been the Chairman of Quickstep since February 14 2013. During this time, he helped the company transition into a profitable aerospace manufacturing and technology business.
“I feel confident that the company is in very good hands with a highly capable Board of Directors with extensive skills and experience and an excellent management team,” Tony said.
Tony will be replaced by Patrick Largier who is currently a Non-Executive Director.
Company shares ended the day with no change, trading flat at 8.6 cents.