XTEK Ltd (ASX:XTE) has finished the 2017 calendar year with a record contract revenue pipeline of $42 million, the highest in the history of the company.
In December, XTEK achieved a significant milestone towards the commercialisation of its in-house composite technology, with the first European purchase order for its personal Small Arms Protective Insert (SAPI) plates.
READ: XTEK wins first European order for its high-end ballistic armour
The order was with Finnish group, FY Composites, a major supplier for the Finnish Defence Force and other European defence customers.
The company also received a $2.4 million purchase order from the Australian Defence Force (ADF) for the supply of a variety of x-ray equipment for Army Explosive Ordnance Disposal (EOD) purposes.
READ: XTEK awarded multi-million dollar purchase order
The contract was awarded under a project for XTEK to supply x-ray, forensics equipment and consumables to the ADF.
Philippe Odouard, managing director, said: “Our prospects are looking increasingly strong both here in Australia as well as on the international market with our business continuing to benefit from increased defence spending across the globe.
“We expect further purchase orders under projects with the Australian Defence Force as well as strong progress with commercialising our XTclave and XTatlas technology”
Strong performance to continue for the remainder of FY2018
XTEK expects its strong performance to continue for the remainder of FY2018 with further defence contract wins with the Australian government and other contract wins globally.
Significantly, the Australian government’s new $3.8 billion defence export strategy plans to make Australia one of the top 10 defence exporters in the world.
This, coupled with increasing global defence expenditure, positions XTEK favourably with international suppliers for major projects.
XTEK remains on track to achieve its FY2018 revenue guidance of $11 million to $18 million.