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.
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.”
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.