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Hardware & electrical equipment

XTEK grows revenue by 91% in FY18, guides to more growth in FY19

The strong FY18 financial result has moved shares higher today by 6% to 49 cents.

XTEK Ltd (ASX:XTE) achieved revenue of $17.2 million in FY18, up 91% on the prior year and notably in the upper end of the previously guided range of $11 to $18 million.

The company has reconfirmed FY19 revenue guidance of between $17 and $26 million noting it has contracted revenue of $38 million in place at the end of June 2018.

XTEK’s cash position remains solid with $5.9 million at the end of June, which is nearly double the amount held in the previous year.

READ: XTEK takes important step to commercialising product portfolio

XTEK’s managing director Philippe Odouard said: “We are proud to update shareholders on the company’s achievement of approximately A$17 million in preliminary FY18 revenue.

“Achieving the upper end of revenue guidance is a testament to the significant operational progress made by XTEK during the last 12 months.

“Our focused strategy is delivering results and combined with a healthy contract revenue pipeline, we expect to generate improved revenue and earnings in FY19.”

All outstanding options exercised

Notably, all outstanding XTEK options have been exercised prior to their expiry date of 15 July 2018 by small-cap investment management firm Kentgrove Capital.

Kentgrove Capital is a long-term supporter of XTEK and sees large global commercial potential in XTEK’s unique manufacturing technology XTclave™.

XTclave™ technology produces strong, lightweight materials for personal body armour and is responsible for recent XTEK contract wins.

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