Quickstep, a manufacturer of aerospace composites, has published an update on its business performance for FY23, delivering a record-breaking forwards order book for FY24 and FY25 and receiving $264 million in new orders and order commitments.
In a press release, the ASX-listed company revealed that its Applied Composites business booked large drone contracts from Australian and worldwide customers, establishing itself as a prominent tier 1 supplier in the market.
Quickstep also unveiled that Wichita, Kansas will be the site of its first engineering and manufacturing plant in the United States.
The group’s revenue of $94.4 million is up nine per cent over the previous year, owing to a six per cent growth in our Aerostructures business, as well as increases in its Aftermarket and Applied Composites businesses.
An unaudited underlying net loss of $3.9 million reflects the problems the business had during CY22 and early CY23, but with a positive Q4 FY23, the company said it is confident that the business is transitioning into a more stable operating environment.
Additionally, Quickstep completed a successful refinancing with CBA in March FY23, which has helped the company manage day-to-day operations while continuing to engage in important growth initiatives.
The more stable operating environment attained in Q4 FY23 resulted in record revenues and a return to profitability for Quickstep.
Strong customer demand remains a good indicator for FY24, and the company said it expects to continue to recover with an emphasis on productivity.
In a statement, the company said, “In FY24 planning we are seeing forecast demand signals which would drive an uplift in average monthly revenue of 11% from the prior year.”
Quickstep added, “The first half of FY24 sees the Aerostructures business, traditionally the core business, deliver forecast revenue representing circa 84% of the Company’s total forecast revenue, however, this eases back to circa 76% in the second half where growth in Aftermarket and Applied Composites is expected to have a greater impact.”
Meanwhile, aerostructures margins are expected to be consistent with those produced in Q4 FY23, providing the company with a solid basis on which to pursue its diversification and expansion plan.
