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XTEK (ASX:XTE) achieves record half year revenue

Technology
ASX:XTE
28 February 2020 11:30 (AEST)
XTEK (ASX:XTE) – Managing Director, Philippe Odouard

Sourced: Proactive Investors Australia

Defence-centric tech experts XTEK (XTE) has achieved record revenue for the first half of the 2020 Financial Year.

The company revealed the $16 million achievement on Thursday. This performance is a 91 per cent improvement on the year prior’s $8.41 million.

“The last six months has been transformational in building our development capabilities and growing our distribution network,” XTEK Managing Director Philippe Odouard said on Thursday.

Gross profit during the period achieved $2.87 million over 2019’s $1.77 million. Investments for XTEK also showed a positive return, as the company spent roughly $650,000 more on research and development.

Last year, the ballistics company also acquired American defence company HighCom Armor.

“In a period of significant investment, including the HighCom acquisition and investment in the new manufacturing centre, our underlying business continues to perform strongly,” Philippe added.

“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.”

On the backend of acquiring HighCom, XTEK went on to launch a new facility in South Australia earlier this month.

The fabrication facility will be used to manufacture lightweight armour plates and helmets to combat ballistics.

The facility uses XTEK’s flagship proprietary technology, XTclave. The technology uses pressure and temperature settings to manufacture the ballistic-defending amour for humans, robotic systems, and unmanned aircrafts.

“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 concluded.

Shares in XTEK saw growth this week, climbing 0.84 per cent come Thursday close to hit 60 cents each.

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