HCL - HighCom Limited

[Dona Ferentes]

XTE doing quite nicely over the last 12 months; now 70c

From a December announcement; highlights:

1. New HighCom Sales & Distribution Office now opened in Poland
2. Provides excellent proximity to European target markets and customers
3. World leading ballistic armour products to be prepositioned for sales and rapid deployment
4. XTEK Group FY23 Revenue expected to exceed A$82m

though I wonder if Pt 2 could have been phrased differently? And I hope rogue actors don't get access.

 

[noirua]

29 September 2023 10:29 (AEST)

Body armour manufacturer XTEK inks $3.2m ballistics order

XTEK (ASX:XTE), a company that specialises in designing military-grade ballistic armour, has announced its receipt of a $3.2m order for its products.

themarketherald.com.au

• Body armour maker XTEK (ASX:XTE) receives a $3.2 million order for its body armour products
• The customer is an undisclosed military entity
• XTEK states ‘thousands’ of its products will be sold which will reduce inventory levels into 2024
• The company has two manufacturing hubs; one in Ohio and one in Adelaide
• Shares last traded at 31 cents

Live Charts -
Long - https://uk.advfn.com/p.php?pid=staticchart&s=ASX^XTE&p=5&t=1
Short - https://uk.advfn.com/p.php?pid=staticchart&s=ASX^XTE&p=0&t=1

 

[Dona Ferentes]

- changing name to HighCom ... ro better reflect the ballistics side (!)
- moving mfg to U.S...

.
- update out today .. moving higher

.
FY24 Opportunity Pipeline & Outlook
The Group has an opportunity pipeline of leads at various stages of qualification worth more than $375m:
• Technology Division – is pursuing multiple drone related Acquisition & Support Contract opportunities across the region valued >$75m;
• Ballistics Division – has a global pipeline of opportunities >$300m for lightweight body armour, ballistic helmets, and ballistic shields, with
customers such as the UK MoD, US DoD, US DoJ.

Based on current sales and business development activity being progressed around the world, and the continued tailwinds for the sector, the Group is positive about maintaining continued revenue growth and profitability in FY24.

 

[System]

On November 30th, 2023, XTEK Limited (XTE) changed its name and ASX code to HighCom Limited (HCL).

 

[Dona Ferentes]

pick up of 20 per cent today, to $0.17 ...

.

(can just make out the upkick)

... but of course the drama happened earlier in Feb, and no wonder there was a name change.

 

[Dona Ferentes]

naw, not impressive... as low as 11.5c

Guidance update – 2HY turnaround expected to contribute positive EBITDA earnings of $1m-$3m

HighCom Limited is pleased to advise that the anticipated return to profitability in 2HY is forecast to deliver $1m-$3m in positive EBITDA earnings for the six months to 30 June 2024. The turnaround will partially offset the 1HY loss, with the full-year EBITDA forecast for a $10m-$12m loss, including $6.2m of impairments recognised in H1 FY2024. In accordance with International Financial Accounting Standards, impairments will be re-assessed at the end of the year-end reporting period. FY24 revenue is expected to be in the range of $46-$48m.
- The Company expects to continue to trade profitably in FY25 based on current sales activity encompassing an opportunity pipeline of leads at various stages of qualification across its two divisions.

.
DNH

 

[Dona Ferentes]

naw, not impressive... as low as 11.5c

Guidance update – 2HY turnaround expected to contribute positive EBITDA earnings of $1m-$3m

...after wallowing just above 10c for a while, there's renewed interest from some around the 07 Aug results announcement. Up again this morning , as high as 28.5c. Getting orders, building cash.
...

FY24 Guidance and Company Update​

HIGHLIGHTS
• H2 FY24 financial results in line with previous guidance
• Cash has significantly improved over H2 FY24, increasing from $1.6m to $6.2m
• No debt, with $3.2m of current working capital facilities available
• Relationship with AeroVironment extended and expanded to new products
• New orders of ballistic products for US domestic and international customers valued at $13.7m, supplied during H1 FY25
• HighCom continues to engage closely with customers in domestic and global markets
• XTClave™ construction ongoing, however delayed, initial engagement from key customers in US Department of Defence

DNH

still uninterested.