Defence industry company XTEK has delivered a record half-year revenue of $48.5 million as it maintained its sharp focus on core capabilities and the implementation of its strategic plan, the company said in its recent results investor update.
Contract orders in hand on December 30, 2022, totalled a near-record $35.1 million.
This includes a $26.9 million SUAS contract from the Australian Department of Defence for delivery in FY23.
The ASX-listed company said its combined pipeline of potential armour and technology opportunities continues to grow with more than $175 million of projects being pursued for delivery in FY23, FY24, and beyond.
In December 2022, the company established its new HighCom European Sales Office & Distribution Centre in Poland.
It is also actively pursuing sales opportunities with close proximity customers in Central and Eastern Europe, as well as Scandinavia.
Furthermore, XTEK said it is developing plans for XTclave manufacturing in the US and other regions in FY24, based in particular on the growing global interest and attention for its “AK47 stopping” Level 3 Rifle Combat Helmet.
In its technology division, XTEK said it is focused on manufacturing and supplying global defence and security agencies with Australian-made and globally sourced unmanned aerial vehicles and unmanned ground vehicles solutions, as well as 3D mapping and tactical situational awareness software.
Currently, the company said it continues to actively seek inorganic growth opportunities domestically and internationally.
At the end of December 2022, the company saw an opportunity pipeline of leads at various stages of qualification worth more than $175 million.
The company reported that its technology division is progressing with multiple ANZ SUAS-related acquisition and support contract opportunities valued in excess of $45 million and expects to provide an update on major new multi-year support order in Q4 FY23.
Meanwhile, HighCom Armor has a growing pipeline of leads across the US, EU, LATAM and APAC regions, that exceeds $130m and continues to hunt multiple large ballistic protection order deals for immediate delivery in FY23 and through into FY24, the company noted.
XTEK predicts its revenue will exceed $82 million based on current sales and business development activity being progressed around the world.
