Xtek Ltd (ASX:XTE) achieved record revenue for the half-year ended 31 December 2017, partly driven by the supply of Explosive Ordinance Disposal (EOD) robots.
In addition, XTEK finished the 2017 calendar year with record orders in hand of $42 million, the highest in the history of the company.
READ: XTEK continues strong performance as order book grows
This strong order book underpins management’s robust growth expectations with the company on track to achieve revenue guidance of between $11 million and $18 million.
XTEK operates in $3.8 billion export industry
Management sees the company as well-placed to capitalise on opportunities in the $3.8 billion Australian government defence export industry.
Phillipe Odouard, managing director, said: “Our prospects are looking increasingly strong both here in Australia as well as on the international market.
“Our business continues to benefit from increased defence spending across the globe.
“We expect further purchase orders under projects with the Australian Defence Force (ADF) as well as strong progress in commercialising our XTclave and XTatlas technology.”
Focus on Homeland Security
XTEK has achieved contract success in the Australian and overseas homeland security markets with its proprietary defence equipment being well sought after.
The company’s knowledge and expertise is focused on providing protection and sustainment solutions for the government, law enforcement, military and commercial sectors.
During the December quarter, the company made strong progress towards the commercialisation of its in-house XTclave technology.
This was highlighted by the first European purchase order for its personal Small Arms Protective Insert (SAPI) plates in December 2017.
Orders received from Australian Defence Force
During the same period, XTEK received a circa $2.4 million purchase order from the ADF.
This was for the supply of a variety of x-ray equipment for Army Explosive Ordnance Disposal (EOD) purposes.
The contract was awarded under a project for XTEK to supply x-ray and forensics equipment and consumables to the ADF.
The supply and maintenance of Small Unmanned Aerial Systems (SUAS) is also becoming a major focus for XTEK.
On track to meet revenue guidance
On the earnings front, the first half net loss of $666,000 represents a significant improvement from the previous corresponding period’s net loss of circa $1.3 million.
XTEK’s balance sheet remains strong with the company debt free and holding circa $4.5 million in cash as at February 21, 2018.
Management is of the view that the company is well funded to pursue its strategy for the remainder of FY2018.
A share purchase plan completed in mid-2017 raised an additional A$1.5 million, following the A$3.0 million placement to sophisticated investors in June 2017.