HCL - HighCom Limited

[Joe Blow]

XTEK Ltd (XTE) is an integrated solutions provider for military, law enforcement, government agencies, and commercial clients. The company is an ISO 9001:2000 accredited company and a registered training organization.

http://www.xtek.net

 

[greggles]

Interesting company this one. XTEK provides products and solutions to defence, law enforcement agencies and other government departments. Their product range includes unmanned aerial systems, weapons, protective security equipment and explosive ordinance disposal equipment.

XTE appears to be winning contracts but is yet to be cashflow positive. In its last half yearly results the company reported a loss of $658,621 on revenue of $5.28 million. Revenue is growing significantly (HY 2017: $5,284,341 compared to HY 2016: $1,130,467) and the losses are decreasing (HY 2017: $658,621 compared to HY 2016: $1,339,386), so it seems to be just be a matter of time until XTEK starts making a profit.

The share price has been increasing over the last 12 months, so there appears to be an expectation that the company will continue to grow and streamline its operations.

 

[Ann]

XTEK teams up with Skykraft to manufacture spacecraft and launcher systems

Canberra-based homeland security company XTEK Limited (ASX: XTE) has entered into an agreement with Australian space services company Skykraft Pty Ltd to co-engineer and potentially manufacture a range of small spacecraft and launcher systems using its proprietary XTclave technology.


Under the agreement terms, the companies will work together to develop the hardware and identify opportunities for product supply to Skykraft from XTEK’s patented production facility.


Specifically, XTEK will develop advanced composite fibre-reinforced-plastic required for the spacecraft, and will manage design and processing technologies of components.


The company has begun working on a lightweight carbon fibre satellite structure design for Skykraft to be produced using XTclave composite curing and consolidation technology delivered from an engineering facility in South Australia.


Initially developed as a manufacturing process for ballistic protection laminates, the process employs ultra-high isostatic pressures at elevated temperatures to achieve composite curing and consolidation in thermoset and thermoplastic resin systems. More...

 

[aus_trader]

Entered as one of the top picks for CY2020 competition. Company heavily involved in the defence space including soldier body armour including helmets as well as other defence technology products:

Revenues have been growing rapidly:

Outlook is bright going into 2020:

 

[Dona Ferentes]

operates in the defence space, now looking to go into orbit

• Skykraft, in conjunction with XTEK, awarded ASA International Space Investment grant to design and qualify a small satellite launch stack
• Follows Memorandum of Understanding signed with Skykraft for the co-engineering and potential manufacture of small spacecraft and launcher systems, first announced 12 June 2019
• XTEK’s advanced composite materials manufactured using its XTclave™ technology have unique technical advantages in space applications
• Validation of XTEK’s unique capabilities, with the collaboration providing a valuable opportunity to commercialise the XTclave™ technology and increasing XTEK’s presence in the space sector

(Skykraft is an Australian space services company that specialises in the conceptualisation, design, manufacture and operations of SmallSat constellations for the delivery of global services. This is realised through an innovative relationship with UNSW Canberra who have created the environment for Skykraft to build upon their expertise and heritage. )
https://www.skykraft.com.au/

 

[Dona Ferentes]

while only a small player, the emphasis on technology is probably assisting XTE shareprice recetly

Australia will be armed with long-range missiles for the first time as part of a $270 billion build-up of the Defence Force over the next decade as the Morrison government looks to keep up with the regional arms race being fuelled by China's militarisation. Signalling a more aggressive posture to deter potential adversaries, Prime Minister Scott Morrison will declare on Wednesday that Australia will never surrender its sovereignty nor seek to intimidate neighbours.
But he will admit that the technology edge enjoyed by the US and its allies can no longer be taken for granted and the Indo-Pacific is the epicentre of rising strategic competition.

"We must face the reality that we have moved into a new and less benign strategic era – one in which the institutions and patterns of co-operation that have benefited our prosperity and security for decades are under increasing strain," Mr Morrison will say in a speech to Australian Defence Force cadets.

 

[Dona Ferentes]

Update, upgrade, upswing

• XTEK expects to achieve FY20 revenue in excess of A$42m (FY19: $37.9m)
• XTEK manufacturing capability (including XTclave™) optimised with the ability to produce up to ~A$40m p.a. of revenue, doubling previous forecast
• XTEK is well placed to service growing interest in its ballistic solutions with further orders expected in the near-to-medium term, underpinning XTEK’s future revenue expectations

 

[aus_trader]

Nice move today, I have this as one of the yearly competition picks. It was well underwater for the last few months, but a now in the green. Days like today certainly helps...

 

[Dona Ferentes]

"We have not seen the conflation of global, economic and strategic uncertainty, now being experienced here in Australia, in our region, since the existential threat we face when the global and regional order collapsed in the 1930s and 1940s.

That is a sobering thought. And it’s something I have reflected on quite a lot lately, as we’ve considered the dire economic circumstances we face. That period of the 1930s has been something I’ve been revisiting on a very regular basis.

And when you connect both the economic challenges and the global uncertainty, it can be very haunting. But not overwhelming. It requires a response.

Now, we must face that reality, understanding that we haven’t moved into a new and less benign strategic area.

One in which the institutions of patterns of cooperation that have benefited our prosperity and security for decades are now under increasing, and I would suggest almost irreversible strain.

The Indo-Pacific is the epicenter of rising strategic competition. Our region will not only shape our future, increasingly though it is the focus of the dominant global contest of our age.

This is the setting for it. Tensions over territorial claims are rising across the Indo-Pacific region as we have seen recently on the disputed border between India and China, in the South China Sea, in the East China Sea.

The risk of miscalculation and even conflict is heightening.

There is a new dynamic of strategic competition and the largely benign security environment, as I’ve noted, that Australia’s enjoyed, basically from the fall of the Berlin Wall and to the global financial crisis, that’s gone.

Since the government’s 2016 Defence White Paper was released, we have witnessed an acceleration of the strategic trends that were already underway. The pandemic has accelerated and accentuated many of those trends.”

https://www.rev.com/blog/transcript...cript-unveiling-270bn-australian-defence-plan

 

[Garpal Gumnut]

XTE is in a trading halt today until Monday I believe.

gg

 

[aus_trader]

XTE is in a trading halt today until Monday I believe.

gg

Doing a fund raising...

 

[Dona Ferentes]

looks like a private plaything. Not too many insto's or fund managers

issued 13,291,801 fully paid ordinary shares in the Company, of which 5,316,720 ordinary shares were issued in accordance with ASX Listing Rule 7.1A. The issue price is $0.69 per share, with a total of A$3,668,536 in funds raised before costs.

And look at the costs: !-> A fee of 6% of the amount raised by the brokers was payable, exclusive of GST

Rank ... Name ......................... Units .........................................% of Units
1 UDB PTY LIMITED <THE BOETTCHER FAMILY A/C> 4,360,630 ................... 6.57%
2. HIGHCOM GLOBAL SECURITY INC 4,000,000 .......................................... 6.03%
3. CS THIRD NOMINEES PTY LIMITED <HSBC CUST NOM AU LTD 13 A/C> 2,678,769 ... 4.04%
4. MRS WENDY WING LIN LO 2,529,022 .................................................... 3.81%
5. WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED 2,463,769 ...... 3.71%
6. MARK PHILIP RACK <ALL OTHERS A/C> 2,193,659 ................................ 3.30%
7. FAIRLANE MANAGEMENT PTY LTD 2,096,097 ...... .................................. 3.16%
8. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 2,069,995 ................. 3.12%
9. EMALYN HOLDINGS <JOHN KENNEDY TESTAMENTARY AC> 1,666,666 ..... 2.51%
10. ALTOR CAPITAL MANAGEMENT PTY LTD <ALTOR ALPHA FUND A/C> 1,457,110 .... 2.19%
11. UDB PTY LIMITED <BOETTCHER SUPER FUND ACCOUNT> 1,266,299 ...... 1.91%
12. BISSAPP SOFTWARE PTY LTD <BISAPP SOFTWARE SF A/C> 1,135,958 .... 1.71%
13. BNP PARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT DRP> 1,093,710 ....1.65%
14. MR PHILIPPE ODOUARD 735,224 .................................................. 1.11%
15. BISSAPP SOFTWARE PTY LTD <SUPER FUND ACCOUNT> 679,000 .... 1.02%
16. MR NICHOLAS HENRY WEBER <MAJURA FAMILY A/C> 675,804 ........ 1.02%
17. DWKSJK PTY LTD <SEAWEED INVESTMENT A/C> 603,090 .............. 0.91%
18. ANWAT MARKETING PTY LTD 558,807 .......................................... 0.84%
19. BUNDARRA TRADING COMPANY PTY LTD <THOMAS EMERY KENNEDY A/C> 537,031 .. 0.8%
20. ROEJO INVESTMENTS PTY LTD 526,993 ....................................... 0.79%
Totals: Top 20 holders of ISSUED CAPITAL 33,327,633 ..................... 50.15%

 

[greggles]

XTE securing deals as a result of the war in Ukraine?

7 March 2022: Purchase Order from an undisclosed customer to the value of A$2.75m for the urgent supply of specialist ballistic armour products.
9 March 2022: Purchase order totalling A$2.75m from the Commonwealth of Australia’s Department of Defence, for “Wasp” Small Unmanned Aerial Systems (SUAS) systems.
24 March 2022: Purchase Order for the urgent supply of specialist ballistic armour products from an undisclosed international customer to the value of A$3.2m.
4 April 2022: Purchase Orders worth a combined value of A$2.35m for specialist ballistic armour products.
26 May 2022: Purchase Order for the rapid supply of HighCom body armour products from an undisclosed customer to the value of $9.5m

Good money to be made from war if you're in the right business. XTE's share price has more than doubled since the war in Ukraine began.

 

[Dona Ferentes]

and today:
XTEKs HighCom Subsidiary Receives US$33.21m (A$46.8m) Order

Key highlights:
• Purchase Order for urgent supply of specialist ballistic armour worth US$33.21m (A$46.8m)
• Multiple shipments scheduled for delivery over coming weeks
• Ballistic armour contracts since 01 March 22 now total A$64.4m
• Total Group new contracts since 01 March 22 now exceeds A$69.5m

 

[Dona Ferentes]

and higher again ... 44c

XTEK Receives A$8.1m for SUAS* Spares & 2 Year Support Contract Extension Orders

Key highlights:
• Defence SUAS Spare Parts orders worth a combined value of A$5.7m
• 2 Year Support Contract term extension accepted for FY23 & FY24 valued at $2.4m

*Support Contract with Defence for Small Unmanned Aerial Systems.

 

[Dona Ferentes]

has gone as high as 60c in Oct, now 51c

Chief executive of XTEK, Scott Basham, said the group was in a strong position to make further sales after a $US33 million ($49 million) order to supply 120,000 items including body armour and helmets to Ukraine in its battle against Russia, was filled in late September.

“We believe we’re perfectly set up for further follow on orders,” he said.

The time taken once the contract was signed to the final delivery on the ground in Ukraine was just 113 days, which included production of the equipment. It was transported in weekly and fortnightly tranches and was shipped on 400 pallets.

XTEK runs the HighCom Armor business (acquired 2019) in Columbus, Ohio which is the biggest production centre, and also has a higher-end facility in Elizabeth in Adelaide’s north, pitched at the premium end and with a significant research and development on site. Mr Basham said the group is poised to ramp up its presence in Poland.

Demand is also rising in other countries in Eastern Europe which are bolstering their own defence forces.

“There’s a lot of escalating and rebuilding. “The global tailwinds for our lifesaving body armour are pretty strong now,” he said.

 

[Sean K]

Interesting. I served with Basham.

 

[rcw1]

Good evening Sean K
Textbook presentation by Basham ... (see attached)

SP gained 6.84% today (25/11/22), 52 week high by the looks.
Not holding.

Have a very nice weekend.

Kind regards
rcw1

 

[noirua]

XTEK (ASX:XTE) receives $26.9m drone order from Australian DoD

Defence tech specialist XTEK (ASX:XTE) has received a $26.9 million purchase order from the Australian Department of Defence for new military drones.

themarketherald.com.au

Defence tech specialist XTEK (XTE) has received a $26.9 million purchase order from the Australian Department of Defence for new military drones.

The company said it expected to deliver the order for the small unmanned aerial systems (SUAS) towards the end of its 2023 financial year and to recognise the corresponding revenue from the order in the same period.

The purchase takes the value of orders in hand for XTEK’s technology division to $35 million, with $47 million in revenue already recognised this financial year.

Live price chart: https://uk.advfn.com/p.php?pid=staticchart&s=ASX^XTE&p=5&t=1

 

[systematic]

Have picked for the 2023 yearly comp. It's actually the only small cap I've picked. I think global defence a good theme at the moment, and I'm not going to be surprised if they get some good contracts etc. Stock is capable of making big moves, and I'm hoping for a double-bagger with this one.