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XTEK secures purchase order from the ADF for drone spare parts

Over fifty AeroVironment drones have been delivered, with more systems scheduled to be delivered in 2020.

XTEK Ltd - XTEK secures purchase order from the ADF for drone spare parts
WASP AE small unmanned aerial system (SUAS)

XTEK Ltd (ASX:XTE) has received a purchase order from the Australian Defence Force (ADF) for SUAS spare parts.

The contract is worth $3.2 million and follows on from the exclusive long-term support contract with the ADF, which was secured by XTEK in September 2019.

This support contract is for an initial period of three years, with multiple options to extend up to 2026, and is expected to be worth up to $35 million.

XTEK’s comprehensive SUAS repair and maintenance facility in Canberra will continue to provide support to the ADF’s growing WASP AE SUAS fleet.

Well placed to capture additional revenue

XTEK’s key support services consist of spare parts, training, maintenance and repairs, including installation of spare parts, electronics and composite materials of the product itself.

Under the previously secured supply contracts to the ADF, over fifty AeroVironment WASP AE SUAS have been delivered, with more systems scheduled to be delivered in 2020.

Further sales of AeroVironment SUAS are possible as the ADF finds innovative applications to employ SUAS in the field.

XTEK is well placed to capture additional support revenue underpinned by the existing contracts with the ADF for additional SUAS and spare parts.

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