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.
