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

The company’s XTclave technology makes it possible to manufacture lighter and stronger ballistic plates and helmets.
ballistic plate
On track for commercial scale production capacity for XTclave products in 2019

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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