Proactiveinvestors Australia XTEK Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia XTEK Ltd RSS feed en Thu, 20 Jun 2019 01:00:34 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - XTEK partners with Skykraft to develop small spacecraft and launcher systems ]]> https://www.proactiveinvestors.com.au/companies/news/221931/xtek-partners-with-skykraft-to-develop-small-spacecraft-and-launcher-systems-221931.html XTEK Ltd (ASX:XTE) has entered into a Memorandum of Understanding (MoU) with Skykraft Pty Limited for the development and potential manufacture of small spacecraft and launcher systems.

Under the MoU, XTEK and Skykraft will work together to co-engineer spacecraft and launcher structures and identify opportunities for the supply of these structures out of XTEK’s patented XTclave™ production facility.

XTEK’s role is the development of advanced composite fibre-reinforced-plastic (FRP) material selection, component designs and processing technologies of components.

The company has begun working on a lightweight carbon fibre satellite structure design for Skykraft to be produced using its proprietary XTclave technology.

READ: XTEK receives $2.1 million order for x-ray equipment and training

XTEK managing director Philippe Odouard said: “This MoU with Skykraft represents a significant commercialisation milestone for XTEK’s composite capabilities.

“This provides external validation of the XTclave technology and provides us a valuable opportunity to expand our capabilities and presence in the growing Australian space composites sector and beyond the defence sector.

“We are looking forward to working closely with Skykraft to develop exciting space solutions, while also accelerating the commercialisation of our proprietary XTclave technology.”

XTclave technology used to supply composite parts for space applications

While XTEK remains primarily focused on the defence sector, there has been an increasing interest in the XTclave technology in other applications.

This has been driven by the potential enhanced performance characteristics offered in by XTclave produced advanced composites.

As such, the space market represents a new target sector which broadens XTEK’s XTclave commercialisation plans.

XTclave technology advantages include potential plastic outgassing reduction, which represents a serious concern for all plastics used in space, and achieving higher specific strength-to-weight ratios due to the ultrahigh processing pressure.

Next steps

Following the MoU, XTEK and Skykraft will work towards a supply agreement between the parties for composite spacecraft and launcher systems.

Given the attractiveness of the space sector and complimentary nature to the target defence sector, XTEK intends to build a space composites design and production capability underpinned by the XTclave technology and a new factory in Australia.

Separately, XTEK is completing additional work on launcher systems and satellite deployment composite parts for space applications.

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Wed, 12 Jun 2019 12:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221931/xtek-partners-with-skykraft-to-develop-small-spacecraft-and-launcher-systems-221931.html
<![CDATA[News - XTEK to outline domestic and international growth opportunities at Proactive’s CEO Sessions ]]> https://www.proactiveinvestors.com.au/companies/news/220897/xtek-to-outline-domestic-and-international-growth-opportunities-at-proactives-ceo-sessions-220897.html XTEK Ltd (ASX:XTE) will outline the growth opportunities for its XTclave protection products and XTatlas real time video solutions for western military forces at Proactive's CEO Sessions next month.

XTEK managing director Philippe Odouard will be presenting at both the Sydney and Melbourne investor sessions.

READ: XTEK receives $2.1 million order for x-ray equipment and training

The company recently obtained an order from the Australian Defence Force (ADF) valued at $2.1 million for x-ray equipment and training.

The equipment consists of advanced, portable, lightweight x-ray image capture units used to receive near real-time imaging in a variety of applications.

This follows on from an international order earlier this month for XTEK’s proprietary XTatlas software technology.

READ: XTEK wins first international order for XTatlas software technology

XTatlas’ ability to provide digital real time intelligence from UAS (Unmanned Aerial System) video, including mapping, 3D modelling and image comparisons to accurately pinpoint geo-referenced features, were instrumental in securing the order.

This international order follows the domestic sales of XTatlas to the ADF last year and expands XTEK’s global market share.

Meanwhile, construction of XTEK’s XTclave facility is progressing well to produce lighter and stronger ballistic plates and helmets.

The company is on track for commercial scale production capacity for XTclave products in 2019.

Register for the CEO Sessions today

Sydney details, Monday, June 3, 2019

Melbourne details, Tuesday, June 4, 2019

Also featuring will be West Wits Mining Ltd (ASX:WWI), Emmerson Resources Ltd (ASX:ERM) and Global Energy Ventures Ltd (ASX:GEV).

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Fri, 24 May 2019 14:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220897/xtek-to-outline-domestic-and-international-growth-opportunities-at-proactives-ceo-sessions-220897.html
<![CDATA[News - XTEK receives $2.1 million order for x-ray equipment and training ]]> https://www.proactiveinvestors.com.au/companies/news/220547/xtek-receives-21-million-order-for-x-ray-equipment-and-training-220547.html XTEK Ltd (ASX:XTE) has received an order from the Australian Defence Force (ADF) valued at $2.1 million for x-ray equipment and training.

The equipment consists of advanced, portable, lightweight x-ray image capture units used to obtain near real-time imaging in a variety of applications.

This follows on from an international order earlier this month for XTEK’s proprietary XTatlas software technology

READ: XTEK wins first international order for XTatlas software technology

XTEK’s managing director Philippe Odouard said: “XTEK has been supplying X-Ray equipment to law enforcement agencies and Defence for many years, primarily in support of homeland security - explosive ordnance disposal (EOD) and improvised explosive device disposal (IEDD).

“Having built strong relationships with various original equipment manufacturers, XTEK continues to provide state of the art equipment in this space.

“These recent orders for X-Ray equipment are testament to the world class products and solutions that XTEK provides.”

READ: XTEK expects at least $11.6 million of revenues this half-year

In February the company reaffirmed its 2018-19 financial year guidance of $20 million to $30 million, after record December 2018 half-year revenues of $8.4 million.

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Mon, 20 May 2019 10:38:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220547/xtek-receives-21-million-order-for-x-ray-equipment-and-training-220547.html
<![CDATA[News - XTEK wins first international order for XTatlas software technology ]]> https://www.proactiveinvestors.com.au/companies/news/219930/xtek-wins-first-international-order-for-xtatlas-software-technology-219930.html XTEK Ltd (ASX:XTE) has received the first international purchase order for its proprietary XTatlas software technology.

The purchase order follows extensive assessment in challenging conditions.

XTEK managing director Philippe Odouard said: “The first international order for XTatlas represents a significant milestone for XTEK and validates the growing interest for our market leading software technology.

READ: XTEK expects at least $11.6 million of revenues this half-year

“We remain focused on commercialising XTatlas and will continue to progress discussions with key parties both domestically and globally, as the operational capability and functionalities of XTatlas gain more interest within the industry.”

XTatlas’ ability to provide digital real time intelligence from UAS (Unmanned Aerial System) video, including mapping, 3D modelling and image comparisons to accurately pinpoint geo-referenced features, were instrumental in the purchase decision.

This international order follows the recent domestic sales of XTatlas to the Australian Defence Force last year and expands XTEK’s global market share.

READ: XTEK selected as exclusive reseller for Heckler & Koch weapon systems in Australia

In May 2019, XTEK plans to complete a demonstration of XTatlas at the Special Operations Forces Industry Conference (SOFIC) in Florida, US.

This provides an opportunity for the software functionalities to be showcased to various UAS manufacturers, including AeroVironment.

It also underpins XTEK’s strategy to focus on commercialising the technology in valuable global markets.

In addition, XTEK has received expression of interest from potential clients who are considering the broader use of XTatlas in other areas, such as firefighting.

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Thu, 09 May 2019 12:56:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219930/xtek-wins-first-international-order-for-xtatlas-software-technology-219930.html
<![CDATA[News - XTEK selected as exclusive reseller for Heckler & Koch weapon systems in Australia ]]> https://www.proactiveinvestors.com.au/companies/news/219428/xtek-selected-as-exclusive-reseller-for-heckler--koch-weapon-systems-in-australia-219428.html XTEK Ltd (ASX:XTE) has been appointed by Heckler & Koch GmbH (H&K) to be their exclusive representative for the marketing and sale of their products to the law enforcement and military authorities of Australia.

H&K is a world-leading manufacturer of high quality and innovative weapon systems to security forces, the police and special forces of NATO and NATO associated states.

READ: XTEK delivers record revenue in the first half of FY2019; reaffirms revenue guidance

The new agreement allows XTEK to exclusively market and distribute H&K small arms weapon systems to Australian law enforcement authorities and the Australian Defence Force (ADF).

As the exclusive value-added reseller, XTEK can introduce Australian industry content such as making carbon fibre parts using its XTclave to the weapon systems to best suit customer capability requirements in Australia and overseas.

XTEK will also perform higher margin services such as training, repair and maintenance services on the H&K weapon systems for its life cycle.

READ: XTEK expects at least $11.6 million of revenues this half-year

XTEK managing director Philippe Odouard said: “We are very proud to have been selected as Heckler & Koch’s exclusive value-added reseller in Australia.

“They are a prestigious and world leading manufacturer of high-quality weapon systems to global customers.

“In addition, this agreement enables a pathway to higher margin revenue streams of Australian industry content, training, repair and maintenance services.

“This is aligned with our existing strategy and ensures XTEK is a defence supplier of choice in Australia.”

Multiple tenders for H&K weapon systems

XTEK has recently submitted responses to separate ADF and Victoria Police tenders for the supply of the H&K weapon systems.

The ADF tender covers the long-term supply and maintenance of small arms weapons systems while the Victorian Police tender is associated with the supply of rifles in the short term.

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Wed, 01 May 2019 14:26:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219428/xtek-selected-as-exclusive-reseller-for-heckler--koch-weapon-systems-in-australia-219428.html
<![CDATA[News - XTEK expects at least $11.6 million of revenues this half-year ]]> https://www.proactiveinvestors.com.au/companies/news/219147/xtek-expects-at-least-116-million-of-revenues-this-half-year-219147.html XTEK Ltd (ASX:XTE) is a high-quality security products provider in the heart of the nation, the Australian Capital Territory. The capital goods company is employing a strategy to transform its business from being primarily a value-added reseller into a creator and commercialiser of its own original design products.

Its multi-disciplinary team delivers a range of solutions to support, protect and sustain people and assets for defence forces and government agencies.

The Canberra-based company is led by managing director Philippe Odouard and executive director Robert Quodling.

Managing director Odouard is a defence-industries commercialisation specialist with 26 years of experience leading defence-related companies in Australia. Among Odouard’s achievements are developing Quickstep Holdings Limited (ASX:QHL) (OTCMKTS:QCKSF) from a start-up to a composite manufacturing and technology leader with annual revenues of $50 million.

Director and former Australian Army officer Quodling has extensive experience leading high-performance teams. He spent more than 19 years with the Army, holding a range of command and operational appointments and receiving a Conspicuous Service Medal (CSM) for service in Special Air Service Regiment.

How does XTEK draw in its revenues?

Capital goods company XTEK’s key assets include a range of security products and the technologies that helped create those products.

In February the company reaffirmed its 2018-19 financial year guidance of $20 million to $30 million, after record December 2018 half-year revenues of $8.4 million.

XTEK expects to achieve a net profit in the June half of 2019, as it banks another $11.6 million to $21.6 million in revenues this financial year.

The company is on an upward pattern of revenue growth, achieving an 59% increase in the December half when compared to the June half-year of 2018.

Gross profit increased by about 3% to $1.8 million in the December half.

Revenue growth had been underpinned by initial delivery of the WASP AE SUAS (small unmanned aircraft system), which had a lower value gross margin than other revenue sources.

The SUAS sales came in at higher levels than contracted figures, shifting the sales mix as they pushed pushed down overall gross margins to 21% as the company focused on developing higher value products based on its XTclave technology.

Composite products based on XTclave technology in the company’s product range include ballistic armour solutions (body armour and helmets), lightweight components, auxillary systems and carbon fibre composites.

Produced at development facilities in Canberra and the South Australian city of Adelaide, they draw upon the composite curing and consolidation technology first developed as a Small Arms Protective Inserts (SAPI) manufacturing process.

XTclave cures composites and consolidates them in resin systems during up to 180-degree cycles of ultra-high isostatic pressures of up to 300 bar.

The United States Department of Defense Foreign Comparative Testing Program-backed technology uses its isostatic pressure effect and high efficiency heat exchange to produce lighter, stronger and stiffer composite articles.

Fibre content of up to 75%, as measured by volume, has been achieved using XTclave without surface dryness or void content through thickness.

XTclave’s development history has included a 2013 US DoD FCTP contract for developing lightweight hard armour-plate solutions using XTclave.

Outputs of the project included significant increases in ballistic performance when compared to autoclave and axial-pressed articles.

A subsequent contract started in 2017 was for ballistic helmets.

XTEK is improving its XTclave income-generating capacity with the construction of an XTclave facility.

The facility is expected to improve production capacity for XTEK’s product lines such as armour plates and ballistic helmets.

Inflection points

XTclave facility construction and production milestones, especially for armour plates and ballistic helmets

Continued revenue growth, including from WASP AE SUAS sources and reselling contracts

June half-year increases in revenues to a forecasted range between $11.6 million and $22.6 million

Net profit expected in the June half-year of 2019

Future higher-margin returns sourced from original products and technologies that enhance revenue-generating capacity

Continued product innovations and contract milestones drawn from leveraging of networks

Tender awards and contract executions, including contract milestones documented at Australian Government procurement website AusTender

Significant contracts, transactions, capital raisings and investment decisions

Managing director Philippe Odouard affirms positive outlook

“Strong top-line growth reflects the implementation of the company’s strategy, with focus now on leveraging existing strategic networks and relationships to deliver shareholder value,” XTEK managing director Philippe Odouard said last month as he affirmed a positive outlook for the company.

“The [December] half results are in line with our expectations and reflect the well-established seasonal trends in procurement and shift in sales mix.

“The construction of the XTclave facility is progressing well to produce ballistic plates and helmets and XTEK continues to invest in development of proprietary products.

“The company is now on the cusp of achieving higher margin sales through repair and maintenance services.

“XTEK is looking forward to exciting times ahead and will continue to pursue higher margin revenue opportunities and grow our presence in key markets.”

 

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Sun, 28 Apr 2019 18:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219147/xtek-expects-at-least-116-million-of-revenues-this-half-year-219147.html
<![CDATA[News - XTEK delivers record revenue in the first half of FY2019; reaffirms revenue guidance ]]> https://www.proactiveinvestors.com.au/companies/news/215477/xtek-delivers-record-revenue-in-the-first-half-of-fy2019-reaffirms-revenue-guidance-215477.html XTEK Ltd (ASX:XTE) has delivered record revenue in the first half of FY2019, with revenue reaching $8.4 million, representing a growth of 59% from the previous half year.

The revenue growth was underpinned by the initial delivery of the WASP AE SUAS (small unmanned aircraft system) to the Australian Army during the period.

During the half year, XTEK generated a positive operating cash inflow of $0.9 million, representing a significant turnaround from an operating cash outflow in the previous period.

As at December 31 2018, XTEK remained free of borrowings and held $6.6 million cash, up $3.8 million from the previous half year.

READ: XTEK maintains revenue guidance of $20-$30 million for 2019 financial year

The company has also reaffirmed its recently improved revenue guidance of $20 million to $30 million for the full year and expects to achieve a net profit for the operation of the second half of the financial year.

XTEK’s confidence is underpinned by a current contracted revenue pipeline of about $43 million, with many existing orders expected to be renewed in the future, consistent with previous years.

XTclave facility construction progressing well

Managing director Philippe Odouard said: “Strong top-line growth reflects the implementation of the company’s strategy, with focus now on leveraging existing strategic networks and relationships to deliver shareholder value.

“The half results are in line with our expectations and reflect the well-established seasonal trends in procurement and shift in sales mix.

“The construction of the XTclave facility is progressing well to produce ballistic plates and helmets and XTEK continues to invest in development of proprietary products.”

Higher margin opportunities

Odouard added: “The company is now on the cusp of achieving higher margin sales through repair and maintenance services.

“XTEK is looking forward to exciting times ahead and will continue to pursue higher margin revenue opportunities and grow our presence in key markets.

“We remain positive on the company’s outlook and reaffirm the improved full year revenue guidance of between $20 million to $30 million.”

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Thu, 28 Feb 2019 16:29:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215477/xtek-delivers-record-revenue-in-the-first-half-of-fy2019-reaffirms-revenue-guidance-215477.html
<![CDATA[News - XTEK maintains revenue guidance of $20-$30 million for 2019 financial year ]]> https://www.proactiveinvestors.com.au/companies/news/215007/xtek-maintains-revenue-guidance-of-20-30-million-for-2019-financial-year-215007.html XTEK Ltd (ASX:XTE) has maintained its revenue guidance of $20-$30 million for the 2019 financial year with the completion of its first order for XTatlas technology under its belt.

In the six months to December 31, 2018, the company ticked off a number of milestones including having completed the first delivery of WASP AE systems and receiving a $6.3 million order for space pare SUAS parts while the XTclave production plant remained on track.

The installation of the SUAS maintenance facility in Canberra was also completed and is well placed to capture ongoing repair and maintenance streams.

Well-positioned across global markets

XTEK managing director Phillippe Odouard said: “Our team is pleased with our progress for the first half of the financial year.

“We have made significant progress towards commercialising our in-house products including receiving the first order for our XTatlas technology as well as with our armour plates and helmet shells including the engineering design of our production facilities.

“Strong performance in recent evaluation assessments positions us well across key global markets with orders from law enforcement agencies and defence clients in sight.”

READ: XTEK director acquires shares in $36,000 on-market trade

In October 2018 the company received the first order for its proprietary technology, XTatlas from the Australian Defence Force (ADF), which allows the ADF to complete a full evaluation of the technology capabilities.,

The latest version of the software, which offers new functionalities, will be provided to the ADF this month allowing the ADF to access real-time, geo-referenced mapping from full motion video streamed from a small unmanned aerial system.

 READ: XTEK confirms FY1 revenue guidance at AGM today

In November XTEK received an order from the ADF for SUAS spare parts following the initial delivery of WASP AE systems to the Army.

In addition, the company received orders for the supply of specialist weapon parts for XTEKS’s Tactical 2 Sniper Rifle and held $6.6 million in cash by December 30, 2018.

 

 

The company is actively engaged in discussions with distributors and partners in Europe and the US in order to offer XTclave produced armour products in these markets.

With a contracted future revenue pipeline of around $43 million, which includes SUAS parts and numerous orders for additional SUAS XTek confirms revenue guidance at $20 - $30 million. 

- Jessica Cummins

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Wed, 20 Feb 2019 22:33:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215007/xtek-maintains-revenue-guidance-of-20-30-million-for-2019-financial-year-215007.html
<![CDATA[News - XTEK director acquires shares in $36,000 on-market trade ]]> https://www.proactiveinvestors.com.au/companies/news/211366/xtek-director-acquires-shares-in-36000-on-market-trade-211366.html XTEK Ltd (ASX:XTE) director Uwe Boettcher has demonstrated his confidence in the company’s strategy of commercialising its proprietary products by increasing his shareholding.

The company supplies a range of products and support services to the defence, law enforcement and government sectors globally.

Boettcher acquired 100,000 XTEK shares in an on-market on December 14 with a value of $36,000.

He now holds more than 5.26 million shares in the company.

READ: XTEK receives $6.3 million purchase orders from Australian Defence Force

Last month XTEK received purchase orders totalling $6.3 million from the Australian Defence Force (ADF) for drone spare parts.

These parts will support the ADF’s small unmanned aerial systems (SUAS) fleet under the Land 129 Phase 4a contract.

Repair facility established

Additionally, XTEK has completed installation of a sophisticated repair facility in Canberra.

The Canberra facility incorporates key maintenance equipment from AeroVironment, Inc. (NASDAQ:AVAV) which enables electronic repairs.

A composite repair facility has also been installed in parallel.

The facilities ensure XTEK is well placed to capture future potential revenue streams from ongoing repair and maintenance of the ADF’s growing SUAS fleet.

READ: XTEK confirms FY19 revenue guidance at AGM today

XTEK confirmed at its recent annual general meeting that it still expects significant revenue growth in the 2019 financial year.

The company achieved revenue of $17.2 million in FY18, up 91% on the prior year and at the time of the AGM had already contracted revenue for FY19 of $20 million.

XTEK reiterated at its AGM that it can earn up to $26 million in revenue in FY2019, which would represent a high-end range of 51% growth on FY18.

READ: XTEK to continue growth through commercialising proprietary products

The main contributor to the company’s core business revenue is supplying SUAS hand-launched drones to the Australian and New Zealand defence forces.

While the core business continues to grow, commercialisation of its in-house XTclave™ and XTatlas™ products present a blue sky opportunity.

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Tue, 18 Dec 2018 16:13:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211366/xtek-director-acquires-shares-in-36000-on-market-trade-211366.html
<![CDATA[News - XTEK confirms FY19 revenue guidance at AGM today ]]> https://www.proactiveinvestors.com.au/companies/news/209797/xtek-confirms-fy19-revenue-guidance-at-agm-today-209797.html XTEK Ltd (ASX:XTE) has taken the opportunity at its annual general meeting (AGM) today to confirm it is still expecting significant revenue growth in FY2019.

The company achieved revenue of $17.2 million in FY18, up 91% on the prior year and already has contracted revenue for FY19 of $20 million.

XTEK reiterated at its AGM today that it can earn up to $26 million in revenue in FY2019, which would represent a high-end range of 51% growth on FY18.

READ: XTEK to continue growth through commercialising proprietary products

XTEK is focused on commercialising proprietary products globally and becoming an integral part of the global supply chain within the Australian defence industry.

The company supplies a range of products and support services to the defence, law enforcement and government sectors globally.

The main contributor to its core business revenue is supplying small unmanned aerial systems (hand-launched drones) to the Australian and New Zealand defence forces.

While the core business continues to grow, the commercialisation of its in-house XTclave™ and XTatlas™ products present a blue sky opportunity.

READ: XTEK receives $6.3 million purchase orders from Australian Defence Force

Earlier this week, XTEK received purchase orders totalling $6.3 million from the Australian Defence Force (ADF) for drone spare parts.

The spare parts will support the small unmanned aerial systems (SUAS) fleet under the Land 129 Phase 4a contract.

Additionally, XTEK has completed installation of a sophisticated repair facility in Canberra and is working with AeroVironment (NASDAQ:AVAV).

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Fri, 23 Nov 2018 13:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209797/xtek-confirms-fy19-revenue-guidance-at-agm-today-209797.html
<![CDATA[News - XTEK receives $6.3 million purchase orders from Australian Defence Force ]]> https://www.proactiveinvestors.com.au/companies/news/209716/xtek-receives-63-million-purchase-orders-from-australian-defence-force-209716.html XTEK Ltd (ASX:XTE) has received purchase orders totalling $6.3 million from the Australian Defence Force (ADF) for drone spare parts.

The spare parts will support the small unmanned aerial systems (SUAS) fleet under the Land 129 Phase 4a contract.

Additionally, XTEK has completed installation of a sophisticated repair facility in Canberra.

READ: XTEK to continue growth through commercialising proprietary products

XTEK’s managing director Philippe Odouard said: “These purchase orders, coupled with the repair facilities in Canberra, represent another significant milestone in XTEK’s strategy to increase the amount of work done by the company in adding value for original equipment manufacturer (OEM) products sold in Australia.

“We are excited to be providing this unique Australian Industry Capability to the ADF.”

Working with NASDAQ company for the Canberra repair facility

The Canberra repair facility incorporates key maintenance equipment from AeroVironment, Inc. (NASDAQ:AVAV) which enables electronic repairs.

A composite repair facility as also been installed in parallel.

The facilities ensure XTEK is well placed to capture future potential revenue streams from ongoing repair and maintenance of the ADF’s growing SUAS fleet.

AeroVironment general manager for drones Kirk Flittie said: "We are proud to team with CTEK in support of the Australian Defence Force.

"We look forward to secure the actional intelligence they need to proceed with certainty."

Drones a big driver of company revenue

XTEK supplies a range of products and support services to the defence, law enforcement and government sectors globally.

The main contributor to its core business revenue is supplying SUAS (hand-launched drones) to the Australian and New Zealand defence forces.

XTEK has provided FY2019 revenue guidance of $17 million to $26 million signalling another financial year of growth.

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Thu, 22 Nov 2018 11:27:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209716/xtek-receives-63-million-purchase-orders-from-australian-defence-force-209716.html
<![CDATA[News - XTEK to continue growth through commercialising proprietary products ]]> https://www.proactiveinvestors.com.au/companies/news/207832/xtek-to-continue-growth-through-commercialising-proprietary-products-207832.html XTEK Ltd (ASX:XTE) is focused on commercialising proprietary products globally and becoming an integral part of the global supply chain within the Australian defence industry.

The company supplies a range of products and support services to the defence, law enforcement and government sectors globally.

The main contributor to its core business revenue is supplying small unmanned aerial systems (hand-launched drones) to the Australian and New Zealand defence forces.

While the core business continues to grow, the commercialisation of its in-house XTclave™ and XTatlas™ products present a blue sky opportunity.

XTEK’s managing director Philippe Odouard said: “We have built a profitable and sustainable core business with multiple growth opportunities in the pipeline.

“In addition, our two proprietary products, XTclave™ and XTatlas™, represent significant upside potential in the near term with the commercialisation of these products underway and gaining momentum.”

XTclave™ is a unique body armour

XTclave™ is a patented manufacturing technology that can produce the world’s lightest and strongest body armour.

XTEK is commercialising its XTclave™ technology through the production of armour products including ballistic plates and helmets that incorporate the technology.

READ: XTEK makes progress with potential customers for XTclave™ technology

In late October 2018, XTEK revealed it was making significant progress with various potential customers in the US, Europe and Australia for its XTclave™ armour technology.

XTEK has made a proposal to the US Department of Defence (DOD) through a request for information (RFI) process to develop new ballistic plates for the US Marine Corps.

It is also moving closer towards securing production orders in Australia and Europe with testing and assessment on ballistic plates taking place.

XTatlas™ is video software used by drones

XTatlas™ is an application that allows for real-time, accurate geo-referenced mapping from a full motion video taken from small drones.

The application provides real-time intelligence to a warfighter at a fraction of the cost provided by similar data from large UAVs.

XTatlas outperforms its competitor’s products which cannot provide geo-referenced mapping in real-time, with data outputs often taking several hours to compute and analyse.

READ: XTEK wins first purchase order for its drone-based technology from Australian Defence Force

XTEK recently received its first purchase order from the Australian defence force for its XTatlas™ proprietary technology.

XTEK grew revenue by 91% in FY2018

XTEK achieved revenue of $17.2 million in FY18, up 91% on the prior year and notably in the upper end of its guided range of $11 to $18 million.

READ: XTEK confirms strong growth outlook for FY2019 following another profitable year

The operational progress achieved in FY2018 has placed the company in a strong position to build on its momentum in FY2019, with $38 million of contracted revenue already in place.

XTEK has provided FY2019 revenue guidance of $17 million to $26 million signalling another financial year of growth.

Price target implies substantial upside

Patersons analyst Jon Scholtz has a Speculative Buy recommendation and price target of 95 cents per share.

He noted the FY18 results delivered revenue at the upper end of guidance, a cash flow positive financial period and a reiteration of FY19 guidance.

Scholtz also believes XTEK has significant upside from in-house products and thus maintained his Spec Buy rating.

Strong relationship with Australian Defence Force

XTEK has made significant ground in terms of forging relationships with high profile clients such as the ADF, as well as State police.

There is also  demand for the company’s products from overseas.

While the end markets are often confidential, the sale of equipment to FY Composites is important as it is known to supply the Finnish Defence Force, as well as other European clients.

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Fri, 26 Oct 2018 07:49:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207832/xtek-to-continue-growth-through-commercialising-proprietary-products-207832.html
<![CDATA[News - XTEK makes progress with potential customers for XTclave™ technology ]]> https://www.proactiveinvestors.com.au/companies/news/207797/xtek-makes-progress-with-potential-customers-for-xtclave-technology-207797.html XTEK Ltd (ASX:XTE) has made significant progress with various potential customers in the US, Europe and Australia for its proprietary XTclave™ armour technology.

The company is on track in executing its strategy to commercialise XTclave™ technology in the production of XTEK armour products including ballistic plates and helmets.

In the US, XTEK aims to both sell directly to key customers and partner with leading US-based defence manufacturers and distributors.

READ: XTEK wins first purchase order for its drone-based technology from Australian Defence Force

XTEK’s managing director Philippe Odouard said: “XTEK is pleased to be executing on its market entry plans to commercialise XTclave™.

“Following years of research and development, the company’s XTclave™ technology has multiple exciting near-term milestones with significant customers interested across key target markets including the US, Europe and Australia.

Dealing with US Government’s Combating Terrorism Technical Support Office (CTTSO)

“Further, the XTclave™ manufactured helmet shells represents promising and significant upside potential, as we look to develop the existing evaluation agreement with the US CTTSO into a significant commercial agreement.

“XTEK remains confident on the results of CTTSO’s evaluation given the similarities to the internal test and is looking forward to providing further updates to the market.

“Lastly, XTEK continues to progress commercialisation of XTclave™ technology in the European and Australian markets.”

Proposal made to US Department of Defence

XTEK has also made a proposal to the US Department of Defence (DOD) through a request for information (RFI) process to develop new ballistic plates for the US Marine Corps.

XTEK completed the RFI with Diamond Age, a leading US-based material science and engineering firm, focused on the development of leading anti-ballistic armour systems.

Moving towards production orders in Australia and Europe

Following XTEK’s initial orders from Finland-based FY Composites in December 2017 and the Australian Defence Force (ADF) in April 2018, testing and assessment on ballistic plates has been progressed.

XTEK expects to receive the outcome of the initial evaluation and assessment from FY Composites in the December quarter and the ADF in the March quarter.

Pending positive outcomes, the next step would be to complete a comprehensive evaluation process, potentially leading to larger production orders.

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Thu, 25 Oct 2018 12:09:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207797/xtek-makes-progress-with-potential-customers-for-xtclave-technology-207797.html
<![CDATA[News - XTEK wins first purchase order for its drone-based technology from Australian Defence Force ]]> https://www.proactiveinvestors.com.au/companies/news/206851/xtek-wins-first-purchase-order-for-its-drone-based-technology-from-australian-defence-force-206851.html XTEK Ltd (ASX:XTE) has received the first purchase order from the Australian Defence Force (ADF) for its proprietary XTatlas Small Unmanned Aerial Systems (SUAS) technology.

XTatlas is an application that allows for real-time, accurate geo-referenced mapping from a full motion video taken from a SUAS (small drone).

The application provides real-time intelligence to a warfighter at a fraction of the cost provided by similar data from large UAVs.

This purchase order worth $70,000 is scheduled to be delivered very quickly and will allow full evaluation of the capability of the application within the ADF.

XTEK’s recent product launch attracted interest from SUAS manufacturers, suppliers and end users worldwide.

The technology is expected to revolutionise the use of small drones in the military and commercial environment.

Real-time actionable intelligence

XTatlas outperforms incumbent competitor products which cannot provide geo-referenced mapping in real-time, with data outputs often taking several hours to compute and analyse.

XTEK’s technology compares real-time video from past pictures/video of the same area to detect and analyse modifications and provide real-time actionable intelligence to the warfighter on the ground.

The use of XTatlas is not limited to the defence and law enforcement sectors, with the technology providing a rapid, accurate mapping advantage in search and rescue, firefighting and disaster response situations.

READ: XTEK confirms strong growth outlook for FY2019 following another profitable year

XTEK managing director Philippe Odouard said: “This purchase order represents another significant milestone in XTEK’s strategy to commercialise its proprietary product portfolio.

“XTatlas represents a significant growth opportunity for XTEK, and we are excited to be supplying our world-leading XTatlas technology to the ADF.

“We also intend to continue progressing discussions with a number of interested parties worldwide”.

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Thu, 11 Oct 2018 16:33:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206851/xtek-wins-first-purchase-order-for-its-drone-based-technology-from-australian-defence-force-206851.html
<![CDATA[Media files - XTEK commercialising two new product lines in a favourable market environment ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10649/xtek-commercialising-two-new-product-lines-in-a-favourable-market-environment-10649.html Tue, 02 Oct 2018 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10649/xtek-commercialising-two-new-product-lines-in-a-favourable-market-environment-10649.html <![CDATA[News - XTEK confirms strong growth outlook for FY2019 following another profitable year ]]> https://www.proactiveinvestors.com.au/companies/news/203939/xtek-confirms-strong-growth-outlook-for-fy2019-following-another-profitable-year-203939.html XTEK Ltd (ASX:XTE) has achieved an (unaudited) revenue of about $17.3 million for the year ending 30 June 2018, which is at the upper end of its guidance range and represents a significant increase from FY2017 revenue ($9 million).

The Australian homeland security specialist supplies products and solutions to defence, law enforcement agencies and other government departments.

 

Notably, XTEK was profitable again in FY2018, achieving an unaudited net profit of about $139,000 in FY2018 against a net profit of $61,000 in FY2017.

This result was achieved despite an investment in R&D of $1.2 million, expensed during the year to prepare the future of XTEK new products.

At the end of the financial year, XTEK held a cash balance of $5.9 million and no debt.

READ: XTEK grows revenue by 91% in FY18, guides to more growth in FY19

XTEK managing director Philippe Odouard said: “Progress during FY2018 has been pleasing, culminating in the recent receival of our first domestic purchase order for XTclave™ products.

“Further, with an encouraging product launch of our XTatlas™ technology in June, the company continues to execute on its proprietary product commercialisation strategy.

“Our proven track record in winning contracts, combined with strong domestic and international customer relationships, resulted in FY18 revenue of approximately $17.3 million.

“XTEK is profitable despite heavy investment in the future. Available cash and significant contracted revenue places XTEK in an exciting position for FY2019.”

Outlook

The operational progress achieved in FY2018 has placed the company in a strong position to build on its momentum in FY2019, with $38 million of contracted revenue already in place.

XTEK has re-confirmed its FY2019 revenue guidance of $17 million to $26 million.

Given XTEK’s status as an ADF (Australian Defence Force) recognised supplier and a member of the Defence Industry Security Program, further defence contract wins are expected

The company remains focused on the production and commercialisation of its ballistic products, expanding the applications of its range of SUAS (small unmanned aerial vehicle) and proprietary XTclave™ technology.

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Fri, 31 Aug 2018 15:09:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203939/xtek-confirms-strong-growth-outlook-for-fy2019-following-another-profitable-year-203939.html
<![CDATA[News - XTEK grows revenue by 91% in FY18, guides to more growth in FY19 ]]> https://www.proactiveinvestors.com.au/companies/news/203262/xtek-grows-revenue-by-91-in-fy18-guides-to-more-growth-in-fy19-203262.html XTEK Ltd (ASX:XTE) achieved revenue of $17.2 million in FY18, up 91% on the prior year and notably in the upper end of the previously guided range of $11 to $18 million.

The company has reconfirmed FY19 revenue guidance of between $17 and $26 million noting it has contracted revenue of $38 million in place at the end of June 2018.

XTEK’s cash position remains solid with $5.9 million at the end of June, which is nearly double the amount held in the previous year.

READ: XTEK takes important step to commercialising product portfolio

XTEK’s managing director Philippe Odouard said: “We are proud to update shareholders on the company’s achievement of approximately A$17 million in preliminary FY18 revenue.

“Achieving the upper end of revenue guidance is a testament to the significant operational progress made by XTEK during the last 12 months.

“Our focused strategy is delivering results and combined with a healthy contract revenue pipeline, we expect to generate improved revenue and earnings in FY19.”

All outstanding options exercised

Notably, all outstanding XTEK options have been exercised prior to their expiry date of 15 July 2018 by small-cap investment management firm Kentgrove Capital.

Kentgrove Capital is a long-term supporter of XTEK and sees large global commercial potential in XTEK’s unique manufacturing technology XTclave™.

XTclave™ technology produces strong, lightweight materials for personal body armour and is responsible for recent XTEK contract wins.

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Tue, 21 Aug 2018 12:48:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203262/xtek-grows-revenue-by-91-in-fy18-guides-to-more-growth-in-fy19-203262.html
<![CDATA[News - XTEK takes important step to commercialising product portfolio ]]> https://www.proactiveinvestors.com.au/companies/news/197965/xtek-takes-important-step-to-commercialising-product-portfolio-197965.html XTEK Ltd (ASX:XTE) has received the first domestic purchase order from the Australian Defence Force (ADF) for its proprietary small arms protective insert (SAPI) plates.

The SAPI plates have been manufactured with XTEK’s proprietary patented XTclave™ process.

The XTclave technology makes it possible to manufacture lighter, stronger and stiffer composite articles more efficiently such as the SAPI plates which are 30% lighter.

Validates XTEK’s in-house developed technology

XTEK’s managing director Philippe Odouard said: “This purchase order represents a significant milestone in XTEK’s strategy to commercialise its proprietary product portfolio.

“We now have received purchase orders from key customers in Europe and Australia for our XTclave made SAPI plates, which provides strong validation of the advantages of our in-house developed technology.

“XTEK remains focused on the commercialisation and production of its ballistic products.”

Lightweight high-end ballistic armour

This is first order from the ADF for XTEK’s latest high-end ballistic armour which has been produced in-house using the company’s XTclave technology.

A key reason for ADF’s purchase was the significant reduction in weight compared to other products that offered similar protection levels.

Milestone for XTEK’s commercialisation strategy

The purchase order represents a significant milestone for XTEK’s commercialisation strategy for the XTclave technology.

Discussions and product testing continues with several potential clients globally who have expressed interest in the XTclave technology.

Furthermore, XTEK continues to make progress with the development of its commercial-scale manufacturing and production capabilities.

READ: XTEK reaffirms fiscal 2018 revenue guidance while broker forecasts new products to drive strong growth

XTEK recently reaffirmed its revenue guidance for fiscal 2018.

The developer and manufacturer of protection, military and surveillance products continues to win new contracts in realising mid-range revenue guidance of about $14 million.

Management is forecasting revenues to be in a range between $11 million and $18 million.

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Thu, 31 May 2018 11:02:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197965/xtek-takes-important-step-to-commercialising-product-portfolio-197965.html
<![CDATA[News - XTEK reaffirms fiscal 2018 revenue guidance while broker forecasts new products to drive strong growth ]]> https://www.proactiveinvestors.com.au/companies/news/196395/xtek-reaffirms-fiscal-2018-revenue-guidance-while-broker-forecasts-new-products-to-drive-strong-growth-196395.html XTEK Ltd (ASX:XTE) recently reaffirmed its revenue guidance for fiscal 2018.

The developer and manufacturer of protection, military and surveillance products continues to win new contracts in realising mid-range revenue guidance of about $14 million.

Management is forecasting revenues to be in a range between $11 million and $18 million.

Managing director Philippe Odouard said: “We are excited with our continued progress, accelerating the commercialisation of our world-class product suite.

"Strong growth is forecast across all our capabilities as we further develop our product pipeline and endeavour to leverage increased defence spending both in Australia and internationally.

"Our standing with the Australian Defence Force (ADF) and a number of key international customers positions us well for rapid near-term revenue growth.”

Price target implies substantial upside

Patersons analyst Jon Scholtz is slightly above the mid-point of XTEK's revenue guidance with his base case forecast of $15.5 million.

The broker initiated coverage of the stock in February with a speculative buy recommendation and a price target of $1.15.

At that stage, XTEK was trading just shy of 70 cents with Scholtz’s price target implying upside of about 70%.

However, the company’s shares have retraced over the last six weeks to trade in the vicinity of 50 cents.

This could represent a buying opportunity given that there have been important positive developments occur which may have been missed.

The price target now implies upside of 130%.

New products to drive revenue growth

Another factor to take into consideration is the recent release of new proprietary products XTclave™ and XTatlas™ which Scholtz hasn’t factored into his projections.

That said, revenues from these products are more likely to impact fiscal 2019/2020 revenues.

Ongoing revenues will be generated by some of the established market leading weapons such as the XTEX TAC2 sniper rifle shown below.

Scholtz is forecasting base case revenues of $22 million in fiscal 2019, which according to his margins should deliver a net profit of $1.2 million.

This represents earnings per share of 3.1 cents indicating the company is trading on a PE multiple of about 16.

While this could be seen as a fairly appropriate multiple for a small emerging company, it arguably doesn’t take into account the group’s medium to long-term growth profile.

It is also worth noting that it is a steep discount to the industry average PE multiple of 27.

Strong relationship with Australian Defence Force

XTEK has already made significant ground in terms of forging relationships with high profile clients such as the ADF, as well as State police.

There is also demand for the company’s products from overseas.

While the end markets are often confidential, the recent sale of certain equipment to FY Composites is important as it is known to supply the Finnish Defence Force, as well as other European clients.

While further expansion into overseas markets would be welcomed, it is worth noting that there is already strong ongoing support from the ADF.

Recurring revenue to increase

Supply contracts traditionally extend over a period of at least three years with revenues also generated from maintenance and support activities over a five to seven-year period.

As the company’s sales build over time, there will be a marked increase in the level of recurring revenue that is generated from maintenance, repair and the provision of parts.

This will assist in providing a level of earnings predictability which can offset the sometimes lumpy sales revenue patterns that can be a function of contract timing.

Reaching a point where there is consistency of revenues is often the line in the sand where companies are valued in line with their growth potential.

Five-fold increase in net profit in 2020

With XTEK for example, Scholtz is forecasting a substantial uptick in earnings in fiscal 2020 with base case net profit increasing from $1.2 million in 2019 to $6.4 million in 2020.

This represents earnings per share of 16 cents, implying a heavily discounted PE multiple of about three relative to the company’s current trading range.

XTEK shapes up as one of those companies that could appeal to forward-looking investors targeting stocks that have niche market positions early in their growth cycle.

Parallels with Electro Optic Systems

On this note, it is worth comparing another player, Electro Optic Systems Hldg Ltd (ASX:EOS) that has been operating in this space for more than a decade.

Similar to XTEK, the company has had well-credentialled proprietary technology with broad applications including military.

There are even some similarities in the type of products they offer with a focus on remotely controlled/robotic technology used in military engagement and surveillance.

This appears to be a step-change in the industry, one which has been driven by the need for stealth and the desire to limit casualties.

This has been accommodated by innovation in mobility and the use of more resilient materials by companies like XTEK and EOS.

EOS’s journey

Step back to 2004/2005 and you can see from the share price chart below that investors recognised EOS's potential.

Its share price more than doubled between mid-2004 and early 2005.

However, it slumped and remained suppressed for a long period of time despite the fact that the company was making positive ground in terms of developing new technologies in collaboration with a high-profile client in the US Army.

The other aspect to note in the historical financials table below is that over the last 10 years the company has generated nominal revenues.

Technology eventually drives top line

But EOS was always about its proprietary technology and there was strong evidence that a sizeable payday would come.

Unfortunately, some investors became impatient, and the troughs in the chart indicate that selling created some outstanding buying opportunities for patient investors.

The case study below is a snippet, but it highlights the fact that the award of a $410 million contract by the US Army had been a development in the making for more than a decade.

While taking in how things unfolded for EOS, keep in mind the fact that XTEK is already at a stage where it will be generating revenues similar to EOS’s fiscal 2017 top line.

If Patersons’ base case projections of revenues nearly doubling from $22 million in fiscal 2019 to $41.5 million in fiscal 2020 are realised, one would expect a rerating.

XTEK’s market capitalisation is $20 million compared with EOS’s market capitalisation of $285 million

Electro Optic Systems Case Study

Excerpt from ASX announcement dated January 30, 2018

‘Electro Optic Systems has been awarded an AU$410 million contract to supply significant quantities of its new R-400S-Mk2 remote weapons systems to an overseas customer.

This contract brings sales of this new EOS product to AU$600 million in the first 12 months of product release.

In opening remarks, Dr Greene (CEO) said: “This new weapon system was initiated in 2005 under a US Army contract to develop next-generation weapon systems. After 7 years of development and 4 years of testing around the world in many harsh environments, the new system entered production in 2017.”

“All $600 million of new contracts are deliverable in monthly shipments from 2018-2022 and follow-on awards for additional equipment, spare parts, servicing and support are expected.’

Continued government support

EOS’s significant share price rally in 2016/2017 was triggered by the award of a contract for 45 units of EOS remote weapons systems to those with new performance levels developed by the group.

This stemmed from the company’s established relationship with the ADF, similar to that forged by XTEK.

XTEK’s sales to the broader Homeland Security instrumentalities in Australia could increase substantially in the coming years.

While XTEK’s shares have retraced recently it is worth noting it’s trading patterns over the last two years. 

There is much less volatility than was the case with EOS over the course of a decade, suggesting this may be a temporary retracement.

ADF recognised supplier

An ADF recognised supplier, XTEK is listed on the ADF register as an approved maintenance facility and is a member of the Defence Industry Security Panel.

Additionally, management and staff have distinguished military and police backgrounds and extensive experience in the Homeland Security sector.

The Australian Government has stated the agenda to provide key military hardware to the global defence market.

It has also provisioned funds to help local defence companies in their manufacturing and export efforts.

Patersons noted that the Turnbull government is said to be spending $200 billion over 10 years on defence industries.

Record December half revenues

XTEK achieved record revenue for the half-year ended December 31, 2017.

In addition, XTEK finished the 2017 calendar year with record orders in hand of $42 million, the highest in the history of the company.

It was also debt free with $4.5 million in cash as at February 21, 2018, which management said was a well-funded position to be in for the remainder of fiscal 2018.

With new products such as the XTclave™ and XTatlas™ already gaining attention/orders from the US military, the ADF and other global enterprises, the group’s order pipeline could increase exponentially.

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Fri, 04 May 2018 13:23:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196395/xtek-reaffirms-fiscal-2018-revenue-guidance-while-broker-forecasts-new-products-to-drive-strong-growth-196395.html
<![CDATA[News - XTEK confirms FY2018 revenue guidance, company well-funded ]]> https://www.proactiveinvestors.com.au/companies/news/195806/xtek-confirms-fy2018-revenue-guidance-company-well-funded-195806.html XTEK Ltd (ASX:XTE) has achieved year to date revenue of $8.3 million and maintains its FY2018 guidance of between $11 million and $18 million.

Furthermore, the company held cash of $3.6 million and no debt at the end of the March quarter.

During the March quarter, XTEK finalised multiple purchase orders from the Australian Defence Force (ADF).

This included a range of explosive ordnance disposal equipment, new high-performance x-ray equipment and helmets for various police forces.

READ: XTEK wins another million dollar contract with Australia Defence Force

XTEK’s managing director Philippe Odouard said: “We are excited with our continued progress, accelerating the commercialisation of our world-class product suite.

“Strong growth is forecast across all our capabilities as we further develop our product pipeline and endeavor to leverage increased defence spending both in Australia and internationally.

“Our standing with the ADF, and a number of key international customers, positions us well for rapid near-term revenue growth.”

Healthy contract revenue pipeline of $41 million

At the end of the March quarter, XTEK retained a healthy contract revenue pipeline of $41 million.

This underpins the company’s revenue growth expectations as illustrated by its FY2018 guidance.

Given the seasonality of the business, there remains a number of key contracts on track for delivery before the end of the current financial year.

Positive outlook backed by rising expenditure on defence

XTEK expects its strong performance to continue in the near term, given its status as an ADF Recognised Supplier and a member of the Defence Industry Security Program.

Further defence contract wins are expected.

Worldwide military interest in drone investment is forecast to increase exponentially in the coming years.

This expectation is underpinned by the US Department of Defense’s request for triple the number of drones for 2019 compared to 2018.

It has proposed to spend US$9.4 billion on unmanned systems defense in its FY2019 defence budget.

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Thu, 26 Apr 2018 11:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195806/xtek-confirms-fy2018-revenue-guidance-company-well-funded-195806.html
<![CDATA[News - XTEK appoints experienced investment executive to its board ]]> https://www.proactiveinvestors.com.au/companies/news/195623/xtek-appoints-experienced-investment-executive-to-its-board-195623.html XTEK Ltd (ASX:XTE) has boosted its board with the appointment of experienced investment executive Chris Fullerton as a non-executive director.

The new director has extensive experience in investment, management and investment banking and is a qualified chartered accountant.

He worked in Hong Kong and Singapore for 15 years before returning to Australia in 1992.

READ: XTEK wins another million dollar contract with Australia Defence Force

Chairman Uwe Boettcher said: “I welcome Chris to the XTEK board and look forward to working with him.

“His experience and contacts will be a great asset to the company."

Fullerton is an investor in listed equities and private equity, and has been a non-executive director of a number of ASX-listed companies.

He is a non-executive director of Paradigm Biopharmaceuticals Ltd (ASX:PAR) and his unlisted company directorships cover companies in the property investment and agriculture sectors.

READ: XTEK poised for rapid near-term growth following major contract wins

XTEK is a leading company in the Australian homeland security market.

Its knowledge and expertise is focused on the delivery of protection and sustainment solutions for the government, law enforcement, military and commercial sectors.

The supply and maintenance of Small Unmanned Aerial Systems (SUAS) is a major focus.

XTEK has developed a range of new technologies which it is commercialising for the international market.

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Tue, 24 Apr 2018 16:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195623/xtek-appoints-experienced-investment-executive-to-its-board-195623.html
<![CDATA[News - XTEK wins another million dollar contract with Australia Defence Force ]]> https://www.proactiveinvestors.com.au/companies/news/194568/xtek-wins-another-million-dollar-contract-with-australia-defence-force-194568.html XTEK Ltd (ASX:XTE) has received a purchase order from the Australian Defence Force (ADF) worth A$1.4 million.

The purchase order is for additional WASP AE small unmanned aerial systems (SUAS), also known as a type of drone.

The order includes associated after-market services including technical support, training and spare equipment.

Well-positioned to continue building contract pipeline

XTEK’s managing director Philippe Odouard said: “This win represents another positive addition to our growing contract pipeline.

“We are well positioned to continue building our contract pipeline over the next 12 months, driven by further purchase orders in Australia, underpinned by increasing defence spending by the Australian Government, and in key international markets.”

This purchase order is scheduled to be delivered before the end of June 2018.

READ: Xtek poised for rapid near-term growth following major contract wins

In July 2017, the ADF revealed a $101 million investment in a new SUAS capability through XTEK.

For XTEK, this represented initial sales revenue of over $40 million and potential maintenance revenue of up to $9 million per annum for 5 to 7 years following delivery.

The company remains on track to deliver the initial range of SUAS to the ADF by July 2018.

Notably, this latest purchase order is in addition to this contract.

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Tue, 10 Apr 2018 10:54:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194568/xtek-wins-another-million-dollar-contract-with-australia-defence-force-194568.html
<![CDATA[News - XTEK director increases stake through on-market purchase ]]> https://www.proactiveinvestors.com.au/companies/news/194108/xtek-director-increases-stake-through-on-market-purchase-194108.html XTEK Ltd (ASX:XTE) director Uwe Boettcher has demonstrated his confidence in the company’s strategy by increasing his shareholding.

READ: Xtek poised for rapid near-term growth following major contract wins

Boettcher has made an on-market purchase of 16,151 shares for a total consideration of about $9,368.

He now holds more than 5.26 million shares in XTEK.

XTEK had achieved record revenue for the half-year ended 31 December 2017, partly driven by the supply of Explosive Ordinance Disposal (EOD) robots.

READ: Xtek on track to meet guidance with record first half revenues and $42 million order book

The order book underpins management’s robust growth expectations with the company on track to achieve revenue guidance of between $11 million and $18 million for FY2018.

XTEK is well placed to secure further contract wins for the remainder of FY2018, supplying defence equipment and tactical weapons for the Australian Defence Force and other law enforcement agencies.

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Tue, 03 Apr 2018 15:42:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194108/xtek-director-increases-stake-through-on-market-purchase-194108.html
<![CDATA[News - Xtek on track to meet guidance with record first half revenues and $42 million order book ]]> https://www.proactiveinvestors.com.au/companies/news/192302/xtek-on-track-to-meet-guidance-with-record-first-half-revenues-and-42-million-order-book-192302.html Xtek Ltd (ASX:XTE) achieved record revenue for the half-year ended 31 December 2017, partly driven by the supply of Explosive Ordinance Disposal (EOD) robots.

In addition, XTEK finished the 2017 calendar year with record orders in hand of $42 million, the highest in the history of the company.

READ: XTEK continues strong performance as order book grows

This strong order book underpins management’s robust growth expectations with the company on track to achieve revenue guidance of between $11 million and $18 million.

XTEK operates in $3.8 billion export industry

Management sees the company as well-placed to capitalise on opportunities in the $3.8 billion Australian government defence export industry.

Phillipe Odouard, managing director, said: “Our prospects are looking increasingly strong both here in Australia as well as on the international market.

“Our business continues to benefit from increased defence spending across the globe.

“We expect further purchase orders under projects with the Australian Defence Force (ADF) as well as strong progress in commercialising our XTclave and XTatlas technology.”

Focus on Homeland Security

XTEK has achieved contract success in the Australian and overseas homeland security markets with its proprietary defence equipment being well sought after.

The company’s knowledge and expertise is focused on providing protection and sustainment solutions for the government, law enforcement, military and commercial sectors.

During the December quarter, the company made strong progress towards the commercialisation of its in-house XTclave technology.

This was highlighted by the first European purchase order for its personal Small Arms Protective Insert (SAPI) plates in December 2017.

Orders received from Australian Defence Force

During the same period, XTEK received a circa $2.4 million purchase order from the ADF.

This was for the supply of a variety of x-ray equipment for Army Explosive Ordnance Disposal (EOD) purposes.

The contract was awarded under a project for XTEK to supply x-ray and forensics equipment and consumables to the ADF.

The supply and maintenance of Small Unmanned Aerial Systems (SUAS) is also becoming a major focus for XTEK.

On track to meet revenue guidance

On the earnings front, the first half net loss of $666,000 represents a significant improvement from the previous corresponding period’s net loss of circa $1.3 million.

XTEK’s balance sheet remains strong with the company debt free and holding circa $4.5 million in cash as at February 21, 2018.

Management is of the view that the company is well funded to pursue its strategy for the remainder of FY2018.

A share purchase plan completed in mid-2017 raised an additional A$1.5 million, following the A$3.0 million placement to sophisticated investors in June 2017.

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Wed, 28 Feb 2018 08:39:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192302/xtek-on-track-to-meet-guidance-with-record-first-half-revenues-and-42-million-order-book-192302.html
<![CDATA[News - XTEK continues strong performance as order book grows ]]> https://www.proactiveinvestors.com.au/companies/news/190955/xtek-continues-strong-performance-as-order-book-grows-190955.html XTEK Ltd (ASX:XTE) has finished the 2017 calendar year with a record contract revenue pipeline of $42 million, the highest in the history of the company.

In December, XTEK achieved a significant milestone towards the commercialisation of its in-house composite technology, with the first European purchase order for its personal Small Arms Protective Insert (SAPI) plates.

READ: XTEK wins first European order for its high-end ballistic armour

The order was with Finnish group, FY Composites, a major supplier for the Finnish Defence Force and other European defence customers.

The company also received a $2.4 million purchase order from the Australian Defence Force (ADF) for the supply of a variety of x-ray equipment for Army Explosive Ordnance Disposal (EOD) purposes.

READ: XTEK awarded multi-million dollar purchase order

The contract was awarded under a project for XTEK to supply x-ray, forensics equipment and consumables to the ADF.

Philippe Odouard, managing director, said: “Our prospects are looking increasingly strong both here in Australia as well as on the international market with our business continuing to benefit from increased defence spending across the globe.

“We expect further purchase orders under projects with the Australian Defence Force as well as strong progress with commercialising our XTclave and XTatlas technology”

Strong performance to continue for the remainder of FY2018

XTEK expects its strong performance to continue for the remainder of FY2018 with further defence contract wins with the Australian government and other contract wins globally.

Significantly, the Australian government’s new $3.8 billion defence export strategy plans to make Australia one of the top 10 defence exporters in the world.

This, coupled with increasing global defence expenditure, positions XTEK favourably with international suppliers for major projects.

XTEK remains on track to achieve its FY2018 revenue guidance of $11 million to $18 million.

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Thu, 01 Feb 2018 12:52:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190955/xtek-continues-strong-performance-as-order-book-grows-190955.html
<![CDATA[News - XTEK wins first European order for its high-end ballistic armour ]]> https://www.proactiveinvestors.com.au/companies/news/188984/xtek-wins-first-european-order-for-its-high-end-ballistic-armour-188984.html XTEK Ltd (ASX:XTE) has received a purchase order from FY Composites for its in-house produced personal Small Arms Protective Insert (SAPI) plates.

WATCH: XTEK's management team featuring at the company's AGM

FY Composites is a supplier for the Finnish Defence Forces and other European defence customers.

It is worth noting that this is the first order that XTEK has received in Europe for its latest rigid SAPI plate, produced using the company’s XTclave technology.

Philippe Odouard, managing director, said: “This purchase order win is a significant step for our business in the commercialisation of our in-house XTclave technology and is evidence of the quality of the composites that the XTclave can produce and also the demand for new types of lighter and more agile armour solutions for domestic and international defence forces”

For use in a variety of combat situations

The new order is for two types of plates both made of polyethylene that will protect against two types of threats.

Both are significantly lighter than existing SAPI plates, but offer the same level of protection.

The plates are also buoyant in water which means they can be used in a variety of demanding combat situations.

Commercial scale XTclave plant to be completed in FY18

The company’s XTclave technology makes it possible to manufacture lighter, stronger and stiffer composite articles.

The new purchase order is for a small batch of armour plates for qualification purposes which is the first step towards larger orders.

Importantly, this is a significant step for XTEK ahead of the construction of the latest iteration of its commercial scale XTclave plant which will be completed in FY18.

The plant will provide XTEK with the ability to meet large scale orders for its personal ballistic armour plates and will also allow it to make a wide variety of products for the global composites market.

READ: XTEK awarded multi-million dollar purchase order

Meanwhile, the company continues to work with a number of potential customers who have expressed interest in the XTclave technology.

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Tue, 19 Dec 2017 14:32:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188984/xtek-wins-first-european-order-for-its-high-end-ballistic-armour-188984.html
<![CDATA[Media files - XTEK's management team featuring at the company's AGM ]]> https://www.proactiveinvestors.com.au/companies/stocktube/8440/xtek-s-management-team-featuring-at-the-company-s-agm-8440.html Wed, 29 Nov 2017 21:28:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/8440/xtek-s-management-team-featuring-at-the-company-s-agm-8440.html <![CDATA[News - XTEK starts financial year with strong September quarter ]]> https://www.proactiveinvestors.com.au/companies/news/186155/xtek-starts-financial-year-with-strong-september-quarter-186155.html XTEK (ASX:XTE) entered the FY18 financial year off the back of a strong year in FY17 with the company returning to profitability and a number of significant contracts secured.

During the past quarter, XTEK signed the $42 million three year contract to provide small unmanned aerial systems (SUAS) for the Australian Defence Force (ADF).

Furthermore, maintenance of this capability may represent an additional up to $50 million over the next 5 to 7 years.

This contract represented a major step-change for XTEK in regard to sales and has the company strongly placed for future contract wins.

XTEK also continues to generate revenues across a range of other sources.

READ NOW: XTEK awarded multi-million dollar purchase order

Philippe Odouard, managing director, commented

“The current financial year is about ensuring our company can further capitalise on the continued expansion of defence and security budgets in Australia and the emphasis that governments both state and federal are placing on local design expertise.

“We are also rapidly progressing the development and commercialisation of our in-house technologies, with the highlight being the development of our new commercial scale XTclave plant which is expected to be commissioned in the current financial year.”

Commercialisation of in-house products

XTEK continues to receive significant interest for its ballistic products and is building a strong pipeline of potential new clients as it works towards the commissioning of its new generation XTclave manufacturing plant.

The plant will be used for the commercial scale production of composite body armour plates and shells for helmets.

It is expected to be commissioned before the end of the current financial year.

Strong interest is also being generated in XTEK’s XTatlas digital imagery technology with a number of commercial pathways identified across unmanned aerial vehicle operators and defence and homeland security agencies. 

Outlook

XTEK has a strong sales pipeline that is expected to drive further revenue growth in FY18 – guidance for FY18 is current $11 to $18 million.

The revenue contribution for FY18 should include contributions from across the company’s three key revenue sources: sales, services and in-house development and manufacture.

Sales will be built on the growing spending by Australian State and Federal Governments on defence and tactical capabilities as well as the focus on commercial opportunities for the in-house XTatlas and XTclave technologies.

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Wed, 25 Oct 2017 15:39:00 +1100 https://www.proactiveinvestors.com.au/companies/news/186155/xtek-starts-financial-year-with-strong-september-quarter-186155.html
<![CDATA[News - XTEK awarded multi-million dollar purchase order ]]> https://www.proactiveinvestors.com.au/companies/news/185686/xtek-awarded-multi-million-dollar-purchase-order-185686.html XTEK (ASX:XTE) has received a purchase order from the Australian Defence Force (ADF) for the supply of x-ray equipment worth A$2.4 million.

The purchase order was awarded under a project for XTEK to supply x-ray and forensics equipment and consumables to the ADF.

Philippe Odouard, managing director, commented: “This purchase order win is evidence of our strong contract pipeline given the increased spending by the Australian Government on its defence needs.

“We expect further purchase orders under such projects over the next year or two and look forward to updating investors as we achieve these milestones.

“The increased demand from the Australian Government underlines our robust revenue growth outlook for the 2018 financial year.”

A profitable growing small cap

XTEK is a leading company in the Australian homeland security market focused on the delivery of protection and sustainment solutions for the government, law enforcement, military and commercial sectors.

A strong sales pipeline delivered profitability in FY17 and FY18 revenue guidance has been recently upgraded to between A$11 and A$18 million.

The supply and maintenance of small unmanned aerial systems (SUAS), also known as drones, is becoming a major focus for XTEK.

READ: XTEK signs formal contract with Australian Defence

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market.

XTclave composite protection products and XTatlas real-time contextual video provide novel solutions for western military forces.

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Tue, 17 Oct 2017 15:44:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185686/xtek-awarded-multi-million-dollar-purchase-order-185686.html
<![CDATA[Media files - XTEK's Philippe Odouard reveals strong sales pipeline and growing revenue ]]> https://www.proactiveinvestors.com.au/companies/stocktube/8085/xtek-s-philippe-odouard-reveals-strong-sales-pipeline-and-growing-revenue-8085.html Fri, 15 Sep 2017 16:39:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/8085/xtek-s-philippe-odouard-reveals-strong-sales-pipeline-and-growing-revenue-8085.html <![CDATA[News - XTEK's share purchase plan exceeds target raising ]]> https://www.proactiveinvestors.com.au/companies/news/181522/xtek-s-share-purchase-plan-exceeds-target-raising-181522.html XTEK Ltd (ASX:XTE) has had to scale back its share purchase plan due to an oversubscription of applications.

The plan is in the money, offering shares at $0.46, compared to the last traded price of $0.50.

As a result, XTEK has elected to accept all applications for parcels of securities of up to $5,000 in full.

Applications above $5,000 will be scaled back by 11%, similar to the scale back that was applied to investors who participated in the recent Placement.

In total the offer raised close to $1.5 million.

Revenue climbing

XTEK recorded unaudited income of A$8.93 million at the end of June, up from A$4.1 million at the end of March.

Not only does the company continue to exhibit strong signs of growth, but a strong sales pipeline suggests that this growth is going to continue.

XTEK believes it could double its revenue again in FY2018.

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Thu, 27 Jul 2017 10:48:00 +1000 https://www.proactiveinvestors.com.au/companies/news/181522/xtek-s-share-purchase-plan-exceeds-target-raising-181522.html
<![CDATA[News - XTEK signs formal contract with Australian Defence ]]> https://www.proactiveinvestors.com.au/companies/news/181383/xtek-signs-formal-contract-with-australian-defence-181383.html XTEK (ASX:XTE) has today formally signed the previously detailed contract to supply small unmanned aerial systems (SUAS) to the Australian Defence Force (ADF).

Under the agreement, XTEK is the prime contractor and will deliver a range of products worth circa A$42 million to the ADF over three years, commencing 1 July 2018.

XTEK will act as the supplier of the WASP AE for US-based firm AeroVironment, the largest supplier of small military unmanned aerial vehicles to the U.S. military.

A formal sub-contract has also been signed with AeroVironment today.

Philippe Odouard, managing director, commented

“This is a very important day for the Australian Defence as XTEK and AeroVironment will deliver the WASP AE SUAS capability to all the relevant units in the Army.

“It also offers a number of Australian designed and supplied items bringing a higher level of information gathering to the warfighter.”

Maintenance contract expected

The A$42 million estimated contract value excludes maintenance costs.

An SUAS maintenance contract will be signed later to provide a local Australian maintenance and support capability to the ADF.

Going into FY2018 after a strong June quarter

XTEK recorded unaudited FY17 income of A$8.93 million at the end of June, up from A$4.1 million at the nine months through to the end of March.

Not only does the company continue to exhibit strong signs of growth, but a strong sales pipeline suggests that this growth is going to continue.

After more than doubling its revenue in FY2017 to an estimated $8.9 million, XTEK is confident it can double its revenue again in the current financial year.

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Tue, 25 Jul 2017 15:05:00 +1000 https://www.proactiveinvestors.com.au/companies/news/181383/xtek-signs-formal-contract-with-australian-defence-181383.html
<![CDATA[News - XTEK finishes the June quarter in a strong position ]]> https://www.proactiveinvestors.com.au/companies/news/181179/xtek-finishes-the-june-quarter-in-a-strong-position-181179.html XTEK (ASX:XTE) has recorded unaudited income of A$8.93 million at the end of June, up from A$4.1 million at the end of March.

Not only does the company continue to exhibit strong signs of growth, but a strong sales pipeline suggests that this growth is going to continue.

During the June quarter, XTEK was selected to supply small unmanned aerial systems (SUAS) to the Australian Defence Force under an A$101 million investment by the Australian Government.

Orders in hand at the end of June totalled A$2.95 million excluding the SUAS contract, with significant new orders expected in the September quarter.

XTEK is well capitalised to support its growth after recently completing a successful oversubscribed $3.1 million placement and a share purchase plan currently underway.

The potential of the SUAS contract

Following execution of the SUAS contract, XTEK could generate revenues of up to A$40 million in the acquisition of the systems over the next three years.

Furthermore, it could generate up to A$9 million per annum through the provision of maintenance and support activities over the next five to seven years for the SUAS capability.

This is in addition to the supply of 14 systems, spare parts and maintenance worth A$10 million over the past two years.

Positioned well for additional contracts

XTEK is well placed for further defence contract wins with the Australian Government which also recently announced it will commit A$200 billion towards growing Australia’s defence capability over the next decade.

Furthermore, XTEK remains well placed to secure additional sales contracts as robots used by Australian law enforcement agencies are approaching the end of their useful lifecycle and will need to be either upgraded or replaced.

READ: XTEK has already had success to date in the September quarter

Confident in FY2018 outlook

After more than doubling its revenue in FY2017 to an estimated $8.9 million, XTEK is confident it can double its revenue again in the current financial year.

VIDEO: Philippe Odouard talks growth

Philippe Odouard, managing director, commented: “The SUAS agreement represents a milestone for XTEK in terms of contracts with the Australian Government and we are well placed to secure additional government contracts over the near-to-medium term.

“This is augmented by the continued opportunities presented by the increase in Australian Government spending on defence in the face of global uncertainty which should give XTEK a strong contract pipeline and continued robust revenue growth.

“At the same time, we expect to continue to achieve a number of key milestones on the path to commercialising our XTclave™ and XTatlas™ technologies on the world market over the next twelve months.”

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Thu, 20 Jul 2017 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/181179/xtek-finishes-the-june-quarter-in-a-strong-position-181179.html
<![CDATA[News - XTEK Ltd supplies Australian Defence Force with equipment order ]]> https://www.proactiveinvestors.com.au/companies/news/180263/xtek-ltd-supplies-australian-defence-force-with-equipment-order-180263.html XTEK Ltd (ASX:XTE) has supplied the Australian Defence Force (ADF) with portable explosive ordnance disposal (EOD) radiographic inspection systems for use by the Australian Army.

The order for the procurement of specialist EOD equipment is valued at A$1.1 million

This order follows XTEK’s recent tender win to provide up to A$100 million in small unmanned aerial systems for the ADF.

XTEK shares continue their strong 2017 performance, up over 50% year to date, currently priced at $0.51.

XTEK has forecast A$9.0 million in revenue in FY17 and will achieve profitability during 2H FY17.

Philippe Odouard, managing director, commented: “The supply of this EOD equipment to the ADF demonstrates XTEK’s capability to provide the ADF with ongoing support in the provision of specialist equipment and the necessary sustainment services as required by the Commonwealth.”


SPP underway

XTEK yesterday opened its share purchase plan (SPP) seeking to raise up to $0.5 million in addition to the recently completed $3 million share placement.

Shareholders will be able to apply for up to $15,000 worth of shares priced at $0.46.

XTEK is a leader in homeland security equipment for the military and police sectors.

The supply and maintenance of small unmanned aerial systems (SUAS) is becoming a major focus for XTEK.

The SPP closes on 24 July 2017.

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Tue, 04 Jul 2017 12:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/180263/xtek-ltd-supplies-australian-defence-force-with-equipment-order-180263.html
<![CDATA[News - XTEK Ltd opens share purchase plan ]]> https://www.proactiveinvestors.com.au/companies/news/180174/xtek-ltd-opens-share-purchase-plan-180174.html XTEK Ltd (ASX:XTE) has today opened its share purchase plan (SPP) seeking to raise up to $0.5 million in addition to the recently completed $3 million share placement.

Shareholders will be able to apply for up to $15,000 worth of shares priced at $0.46.

XTEK is a leader in homeland security equipment for the military and police sectors.

The supply and maintenance of small unmanned aerial systems (SUAS) is becoming a major focus for XTEK.

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market.

XTclave™ composite protection products and XTatlas™ real-time geospatial video provide novel solutions for western military forces.


Use of funds

The funds raised from the placement and SPP will be applied towards:

- XTclave commercialisation: A$1.0 million to construct XTEK’s own commercial scale XTclave production plant and ancillary equipment to allow XTEK to continue the promotion of its technology on the world market and produce commercial quantities of its advanced XTclave personal hard armour ballistic protection plates;
- XTatlas technology development: A$0.5 million towards research and development activity related to the proprietary XTatlas software technology;
- Expansion capital: A$1.8 million in additional working capital primarily to allow the company to pursue more and larger contracts in the future; and
- Offer costs: A$0.2 million.


SPP timetable

The timetable for the SPP is as follows:

- 27 June: Record date for SPP;
- 3 July: SPP opens and documents despatched;
- 24 July: SPP closes;
- 31 July: Allotment of new shares; and
- 1 August: Trading of new shares.


Looking forward

XTEK has forecast A$9.0 million in revenue in FY17 and will achieve profitability during 2H FY17.

The company has also announced strong forecast revenue growth from FY18 out to FY20, based on contract wins and its strong sales pipeline.

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Mon, 03 Jul 2017 11:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/180174/xtek-ltd-opens-share-purchase-plan-180174.html
<![CDATA[Media files - XTEK's Philippe Odouard presents growing revenue and new contracts ]]> https://www.proactiveinvestors.com.au/companies/stocktube/7684/xtek-s-philippe-odouard-presents-growing-revenue-and-new-contracts-7684.html Mon, 03 Jul 2017 08:00:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/7684/xtek-s-philippe-odouard-presents-growing-revenue-and-new-contracts-7684.html <![CDATA[News - XTEK secures cash in oversubscribed capital raising ]]> https://www.proactiveinvestors.com.au/companies/news/179930/ XTEK (ASX:XTE) has completed a $3.0 million oversubscribed placement to sophisticated and institutional investors priced at $0.46 per share.

Eligible shareholders will also have the opportunity to participate in a share purchase plan (SPP) at the same issue price to raise an additional $0.5 million taking the total raising to $3.5 million.

Funds raised will be used to accelerate the development and commercialisation of XTEK’s XTclave™ and XTatlas™ technologies, and to provide working capital for growth from major contract wins.

Philippe Odouard, managing director, commented: “We are pleased by the considerable support shown during this equity raising.

“It reflects a strong endorsement from the investment community and XTEK’s shareholders and places the company in a very strong position to accelerate the growth of the business and to benefit from the global trend of increased government spending on security equipment and technology in the face of growing global uncertainty.”


Background

XTEK is a leader in homeland security equipment for the military and police sectors.

The supply and maintenance of small unmanned aerial systems (SUAS) is becoming a major focus for XTEK.

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market.

XTclave™ composite protection products and XTatlas™ real-time geospatial video provide novel solutions for western military forces.


Use of funds

Funds raised from the placement and SPP will be primarily used for:

- XTclave commercialisation: including the construction of XTEK’s own commercial scale XTclave production plant and ancillary equipment, allowing XTEK to continue the promotion of its technology on the world market. This will allow XTEK to produce commercial quantities of its advanced XTclave personal hard armour ballistic protection plates;
- XTatlas technology development: the commercialisation of XTatlas through its existing and future unmanned aircraft system contracts is a key focus for the company;
- Expansion capital: to allow the achievement of revenue guidance and pursue more and larger contracts in the future; and
- Costs of the placement and SPP.


SPP timetable

The proposed timetable for the placement and SPP is as follows:

- 27 June: Record date for SPP;
- 30 June: Settlement of placement;
- 3 July: SPP booklet despatched to shareholders; and
- 24 July: SPP closes.


Analysis

The capital raising provides XTEK with the necessary funding to continue its strong momentum in 2017, which has seen the share price rise over 65% to $0.55.

XTEK is well positioned with Australian federal and state governments increasing their spending on security equipment during these uncertain times.

This is highlighted by the company’s recent $1.7 million contract for the supply of two explosive ordnance disposal (EOD) robots to a state police force.

Furthermore, XTEK is well placed to secure additional sales contracts as robots used by Australian law enforcement agencies are approaching the end of their useful lifecycle and will need to be either upgraded or replaced.

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Wed, 28 Jun 2017 09:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179930/
<![CDATA[News - XTEK Limited to reveal raising details ]]> https://www.proactiveinvestors.com.au/companies/news/179774/xtek-limited-to-reveal-raising-details-179774.html XTEK Limited (ASX:XTE) has been granted a trading halt by the ASX, pending details of a capital raising.

XTEK is a leading company in the Australian Homeland Security Market.

The halt will remain in place until the opening of trade on Wednesday 28th June 2017, or earlier if an announcement is made to the market.

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Mon, 26 Jun 2017 10:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179774/xtek-limited-to-reveal-raising-details-179774.html
<![CDATA[News - XTEK secures robot contract with police ]]> https://www.proactiveinvestors.com.au/companies/news/179422/xtek-secures-robot-contract-with-police-179422.html XTEK (ASX:XTE) has been awarded a $1.7 million contract for the supply of two explosive ordnance disposal (EOD) robots to a state police force.

The contract is for the supply of one Telerob Telemax robot and one Telerob tEODor robot which will primarily be used for bomb disposal operations.

As with most equipment sales by XTEK, the contract includes the option of including a maintenance component.

The contract with the state police force is the second EOD contract that XTEK has secured this calendar year.

XTEK is well placed to secure additional sales contracts as robots used by Australian law enforcement agencies are approaching the end of their useful lifecycle and will need to be either upgraded or replaced.


Philippe Odouard, managing director, commented

“XTEK doesn’t only supply world-leading equipment, we also have the ability to offer value-added solutions, such as upgrading of the tEODor robot or customising a range of equipment to meet local requirements.

“This value-add is an important differentiator for our business as it allows us to further cement our position as the leading provider of EOD and other tactical and security equipment products for defence and law enforcement agencies in Australia.

“Our company has won a number of significant tenders in recent time and we are well placed to win additional contracts off the back of the increase in spending by agencies in the area of homeland security.”


Background

XTEK is a leader in homeland security equipment for the military and police sectors.

The supply and maintenance of small unmanned aerial systems (SUAS) is becoming a major focus for XTEK.

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market.

XTclave™ composite protection products and XTatlas™ real-time geospatial video provide novel solutions for western military forces.


Analysis

XTEK continues to build momentum through new contracts with this being the second EOD contract secured this calendar year following the agreement to supply one ICOR Caliber T5 robot to another Australian police force in January.

Furthermore, last week XTEK signed a US$644,000 agreement with the U.S. Government’s Combating Terrorism Technical Support Office (CTTSO) to fabricate and test combat helmets and flat panels produced using XTEK’s XTclave™ technology.

Under the agreement, the U.S. Government CTTSO will cover the costs related to this 18-month project, which aims to create advanced, lightweight combat helmets.

The company is well positioned with Australian federal and state governments increasing their spending on security equipment during these uncertain times.

XTEK shares continue to perform strongly in 2017, up over 60% year to date, currently priced at $0.53.

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Mon, 19 Jun 2017 12:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179422/xtek-secures-robot-contract-with-police-179422.html
<![CDATA[News - XTEK: Access latest PPT from Proactive's CEO Sessions ]]> https://www.proactiveinvestors.com.au/companies/news/179169/xtek-access-latest-ppt-from-proactive-s-ceo-sessions-179169.html Xtek's (ASX:XTE) managing director, Philippe Odouard, joined Proactive's CEO Sessions in Sydney on Wednesday 14th June and Melbourne on Thursday 15th June.

Xtek is a leader in homeland security equipment for the military and police sectors, and continues to grow its revenue streams.

The company has forecast A$9 million in revenue for FY17, and a near-term shift to profitability.


ACCESS THE FULL PRESENTATION HERE

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Mon, 19 Jun 2017 08:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179169/xtek-access-latest-ppt-from-proactive-s-ceo-sessions-179169.html
<![CDATA[News - XTEK signs second agreement with U.S. military ]]> https://www.proactiveinvestors.com.au/companies/news/179188/xtek-signs-second-agreement-with-us-military-179188.html XTEK (ASX:XTE) has signed an agreement with the U.S. Government’s Combating Terrorism Technical Support Office (CTTSO) to fabricate and test combat helmets and flat panels produced using XTEK’s XTclave™ technology.

Under the agreement, the U.S. Government CTTSO will cover the costs related to this 18-month project, which aims to create advanced, lightweight combat helmets.

The value of this agreement is US$644,000.

Philippe Odouard, managing director, commented: “The U.S. Government is the world leader in military technology, and for the second time they have committed funds to XTEK for research and testing, which demonstrates their interest in our XTclave and associated technology.

“We are confident that we will achieve a good result from the latest research initiative as we have proven on a number of occasions that XTclave is capable of producing composites with complex shapes and structures that are lighter and that can offer a higher level of protection.”


XTclave™ technology

XTclave™ is a trademarked technology that makes it possible to manufacture lighter, stronger and stiffer composite articles more efficiently.

This is the second time that the U.S. Government has provided funding for research on the company’s XTclave technology.

The first test program, which was announced in 2013, was undertaken under the U.S. Foreign Comparative Testing (FCT) program with the U.S. Army.

The FCT program was to test XTclave manufactured rigid armour inserts used in body armour.

This latest agreement confirms the U.S. military’s interest in XTEK’s patent protected technology, which can not only produce stronger and lighter ballistic-resistant composites but is also ideally suited to complex shaped geometries like helmets.


Background

XTEK is a leader in homeland security equipment for the military and police sectors.

The supply and maintenance of small unmanned aerial systems (SUAS) is becoming a major focus for XTEK.

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market.

XTclave™ composite protection products and XTatlas™ real-time geospatial video provide novel solutions for western military forces.


Proactive's CEO Sessions

Philippe Odouard, managing director for XTEK, is presenting at the Proactive's CEO Sessions.

Click on one of the cities below to attend and hear more on XTEK:

- Sydney: Wednesday, 14th June
- Melbourne: Thursday, 15th June

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Wed, 14 Jun 2017 11:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179188/xtek-signs-second-agreement-with-us-military-179188.html
<![CDATA[News - XTEK brings Homeland Security Solutions to Proactive's Spotlight CEO Sessions ]]> https://www.proactiveinvestors.com.au/companies/news/178653/xtek-brings-homeland-security-solutions-to-proactive-s-spotlight-ceo-sessions-178653.html XTEK (ASX:XTE) is a leader in homeland security equipment for the military and police sectors.

The company provides a wide range of specialised products in the areas of Explosive Ordinance Disposal, Unmanned Aerial Systems and imagery, weapons/ballistic protection.

XTEK is set to supply small Unmanned Aerial Systems, also known as remote controlled aircrafts, to the Australian Defence Force.


Find out more from Philippe Odouard at Proactive's CEO Sessions.


Click below to register by email

- Sydney: Wednesday 14th June.
- Melbourne: Thursday 15th June.
- Email Pauline here.
- Call office on (02) 9280 0700.

Presenter list

- Regeneus (ASX:RGS): CEO John Martin
- Tlou Energy (ASX:TOU): MD & CEO Anthony Gilby
- AuKing Mining (ASX:AKN): MD Paul Williams
- XTEK (ASX:XTE): MD Philippe Odouard
- Pioneer Resources (ASX:PIO): MD David Crook

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Fri, 09 Jun 2017 09:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178653/xtek-brings-homeland-security-solutions-to-proactive-s-spotlight-ceo-sessions-178653.html
<![CDATA[News - XTEK's chairman buys on-market ]]> https://www.proactiveinvestors.com.au/companies/news/178934/xtek-s-chairman-buys-on-market-178934.html XTEK's (ASX:XTE) non-executive chairman, Uwe Boettcher, has increased his direct stake in the company through an on-market purchase of 50,000 shares for a consideration on $20,500.

Boettcher now holds close to 5.1 million shares.

XTEK is set to supply small unmanned aerial systems (SUAS), also known as remote controlled aircrafts, to the Australian Defence Force.

The Minister for Defence, Senator the Hon Marise Payne and the Minister for Defence Industry, the Hon Christopher Pyne MP, recently announced the acquisition and support of a new world class SUAS capability through XTEK.

The ministers noted the $101 million investment into SUAS will directly create up to 10 new jobs in Canberra plus supporting dozens of jobs in the supply chain.

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Thu, 08 Jun 2017 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178934/xtek-s-chairman-buys-on-market-178934.html
<![CDATA[News - XTEK shares leap higher on supply agreement with the Australian Defence Force ]]> https://www.proactiveinvestors.com.au/companies/news/178599/xtek-shares-leap-higher-on-supply-agreement-with-the-australian-defence-force-178599.html XTEK (ASX:XTE) is set to supply small unmanned aerial systems (SUAS), also known as remote controlled aircrafts, to the Australian Defence Force.

Investors have championed the deal, with XTEK shares trading 18% higher at $0.47 per share in morning trade on strong volume.

The Minister for Defence, Senator the Hon Marise Payne and the Minister for Defence Industry, the Hon Christopher Pyne MP, have today announced the acquisition and support of a new world class SUAS capability through XTEK.

The ministers noted the $101 million investment into SUAS will directly create up to 10 new jobs in Canberra plus supporting dozens of jobs in the supply chain.

XTEK will work with Defence to progress towards signature of a contract for the SUAS as soon as possible.

The investment includes an amount for management of the contract by the Australian Defence Force.

The supply and maintenance of SUAS is becoming a major focus for XTEK.

XTEK is a leader in homeland security equipment for the military and police sectors.

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Thu, 01 Jun 2017 10:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178599/xtek-shares-leap-higher-on-supply-agreement-with-the-australian-defence-force-178599.html
<![CDATA[News - XTEK's chairman lifts stake on-market ]]> https://www.proactiveinvestors.com.au/companies/news/177683/xtek-s-chairman-lifts-stake-on-market-177683.html XTEK's (ASX:XTE) non-executive chairman, Uwe Boettcher, has purchsaed 49,318 shares on-market for a condisderation of $19,234, or $0.39 per share.

Boettcher now holds over 5 million shares.

XTEK has a unique company strategy and combines exclusive distribution agreements with complementary local development to bring complete and state of the art solutions to its homeland security markets.

The company focusses on three main segments:

- Explosive Ordnance Disposal (EOD) equipment;
- Unmanned Aircraft Systems (UAS) – Unmanned Aerial Vehicles (UAV) and real time tactical imagery; and
- Ballistic protection and weapons – High-end protection equipment (plates and helmets) as well as its own sniper rifle.


Growing pipeline

XTEK continues to secure contracts from defence and law enforcement agencies as part of a growing trend in defence and security spending.

The company posted income for the March quarter of $4.1 million, significantly higher than the $1.1 million for the prior December quarter.

Momentum is set to continue with orders in hand at the end of March totalling $4.4 million, all of which should be invoiced this financial year.

A number of new contracts were won during the March quarter, which has provided a platform for the company to deliver strong revenue growth in the current final quarter of FY17.

XTEK expects to deliver a positive finish to FY17 off the back of a strong pipeline of sales opportunities.

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Fri, 12 May 2017 09:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/177683/xtek-s-chairman-lifts-stake-on-market-177683.html
<![CDATA[News - XTEK has strong sales pipeline and momentum ]]> https://www.proactiveinvestors.com.au/companies/news/177625/xtek-has-strong-sales-pipeline-and-momentum-177625.html XTEK (ASX:XTE) continues to secure contracts from defence and law enforcement agencies as part of a growing trend in defence and security spending.

The company posted income for the March quarter of $4.1 million, significantly higher than the $1.1 million for the prior December quarter.

Momentum is set to continue with orders in hand at the end of March totalling $4.4 million, all of which should be invoiced this financial year.

A number of new contracts were won during the March quarter, which has provided a platform for the company to deliver strong revenue growth in the current final quarter of FY17.

XTEK expects to deliver a positive finish to FY17 off the back of a strong pipeline of sales opportunities.


Philippe Odouard, managing director, commented:

“XTEK is uniquely placed to benefit from the global trend of increased government spending on security equipment and technology in the face of growing global uncertainty.

“We expect this trend to persist over the next few years as Australia is committed to keeping pace with its allies and regional neighbours in this area.

“At the same time, we are set to achieve additional milestones for our unique and innovative technologies in the near term, which will give investors several things to look forward to as we widen the field of application of our technology to new fields beyond ballistic protection.”


Background

XTEK is a leader in homeland security equipment for the military and police sectors.
The company focuses on 3 main segments:

- Explosive ordnance disposal (EOD) equipment;
- Unmanned aircraft systems (UAS), unmanned aerial vehicles (UAV) and real time tactical imagery; and
- Ballistic protection and weapons: high-end protection equipment (plates and helmets) as well as its own sniper rifle.

XTEK provides development, manufacture, marketing, sales, training, technical support and maintenance for its products and services through highly experienced professionals and scientists in these fields.

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Thu, 11 May 2017 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/177625/xtek-has-strong-sales-pipeline-and-momentum-177625.html
<![CDATA[News - XTEK chairman buys more shares on market ]]> https://www.proactiveinvestors.com.au/companies/news/174659/xtek-chairman-buys-more-shares-on-market-174659.html XTEK (ASX:XTE) has had 30,000 of its shares purchased on-market by its chairman of the board.

Uwe Boettcher spent $10,200 buying 30,000 shares priced at $0.34 increasing his total holding in the company to 4.96 million shares.

XTEK recently produced rigid body armour inserts that it believes to be circa 30% lighter than existing armour that offer the same protection level.

The company used its XTclave technology to produce a body armour insert that has been tested and shown to protect against the 7.62 millimetre mild steel core (MSC) bullets.

The technology will be exhibited at the world’s largest composite show in Paris later this month.

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Mon, 13 Mar 2017 15:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/174659/xtek-chairman-buys-more-shares-on-market-174659.html
<![CDATA[News - XTEK unveils new high protection body armour ]]> https://www.proactiveinvestors.com.au/companies/news/174584/xtek-unveils-new-high-protection-body-armour-174584.html XTEK (ASX:XTE) has produced rigid body armour inserts that it believes to be circa 30% lighter than existing armour that offer the same protection level.

The company has used its XTclave technology to produce a body armour insert that has been tested and shown to protect against the 7.62 millimetre mild steel core (MSC) bullets.

XTEK has also produced armour that can offer a higher level of protection with comparatively lighter weights.

The technology will be exhibited at the world’s largest composite show in Paris later this month.

Philippe Odouard, managing director, commented: “These new results are an extremely encouraging development for XTEK and open up a new range of potential opportunities for our XTclave technology.

“XTclave also has wide ranging potential beyond rigid body armour as the technology can produce all sorts of complex shapes and structures that are lighter and stronger than those that are currently commercially available.”


Background

XTEK is a leading company in the Australian Homeland Security Market.

XTEK’s knowledge and expertise is focused on the delivery of protection and sustainment solutions for the government, law enforcement, military and commercial sectors.

The supply and maintenance of unmanned systems are becoming a major focus for XTEK.

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market.

XTclave composite production process and products allow the highest performance ballistic protection for armed forces.

XTatlas real time geospatial video and the digitisation of unmanned ground vehicle (UGV) control systems provide novel solutions for our law enforcement agencies and military forces.

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Fri, 10 Mar 2017 13:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/174584/xtek-unveils-new-high-protection-body-armour-174584.html
<![CDATA[News - XTEK wins million dollar purchase order ]]> https://www.proactiveinvestors.com.au/companies/news/173093/xtek-wins-million-dollar-purchase-order-173093.html XTEK (ASX:XTE) has secured a $1.1 million purchase order with the Australian Defence Force (ADF) to supply x-ray generators.

This follows a separate supply contract for similar equipment to the ADF worth $0.2 million delivered in the last few weeks.

The $1.1 million contract builds on the $6.3 million of orders in hand at the end of the December quarter, up 33% from previous quarter.

Philippe Odouard, managing director, commented: “The strong sales momentum that XTEK is experiencing has allowed us to build our base of recurring revenue through the provision of maintenance services by our highly specialised technical staff.

“We have made a positive start to the year and we expect to deliver a strong revenue growth for 2017 full year as the company further positions itself as the leading supplier of choice for x-ray generators across the military, police and security markets.”


Background

XTEK is a leading company in the Australian Homeland Security Market.

XTEK’s knowledge and expertise is focused on the delivery of protection and sustainment solutions for the government, law enforcement, military and commercial sectors.

The supply and maintenance of unmanned systems are becoming a major focus for XTEK.

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market.

XTclave composite production process and products allow the highest performance ballistic protection for armed forces.

XTatlas real time geospatial video and the digitisation of unmanned ground vehicle (UGV) control systems provide novel solutions for our law enforcement agencies and military forces.


Well positioned for 2017

During the December quarter, XTEK continued to make inroads in the commercialisation of its proprietary technologies.

Contracts and purchase orders worth circa $0.5 million were recently signed for the sale and maintenance of explosive ordnance disposal (EOD) robots.

Management believes the company is well placed to secure more sales contracts in the short to medium term as most of the EOD and tactical robots used by the nation’s police services are coming to the end of their productive life and will need to be either replaced or upgraded.

XTEK is the market leader in Australia for the supply, customisation and maintenance of these systems.

The company’s existing business is moving from strength to strength as the government increases spending on defence and security during these unpredictable times, while its unique technologies are likely to make a significant step closer to commercialisation over the coming months.

Further, XTEK’s subsidiary Simmersion is also gaining more market interest than originally anticipated.

Simmersion’s 3D visualisation software, which is aimed at urban planners, architects, mining companies and environmental impact consultants, just to name a few, is being trialled by a number potential customers.

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Tue, 14 Feb 2017 12:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/173093/xtek-wins-million-dollar-purchase-order-173093.html
<![CDATA[News - XTEK wins new supply contract with police ]]> https://www.proactiveinvestors.com.au/companies/news/171982/xtek-wins-new-supply-contract-with-police-171982.html The estimated size of the market for EOD and surveillance robots used in Australian law enforcement is in excess of $20 million.

The contract includes maintenance component which will provide valuable recurring revenue.

Potential exists for further contract wins as most robots used by Australian law enforcement agencies will need to be replaced and/or upgraded in the near future.

Phillipe Odouard, managing director, commented: “We are an industry leader when it comes to the supply of unmanned vehicles for land, air or sea to security and military forces in this country.

“This means XTEK is well placed to benefit from the growing demand for such vehicles at a time of heightened public safety concern from the threat of terrorism.”


Background

XTEK is a leading company in the Australian Homeland Security Market.

XTEK’s knowledge and expertise is focused on the delivery of protection and sustainment solutions for the government, law enforcement, military and commercial sectors.

The supply and maintenance of unmanned systems are becoming a major focus for XTEK.

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market.

XTclave composite production process and products allow the highest performance ballistic protection for armed forces.

XTatlas real time geospatial video and the digitisation of unmanned ground vehicle (UGV) control systems provide novel solutions for our law enforcement agencies and military forces.

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Mon, 23 Jan 2017 10:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/171982/xtek-wins-new-supply-contract-with-police-171982.html