HCL HighCom Limited (Prev XTEK Ltd (XTE)

[percy]

.
strawman Interview with Group CEO, Scott Basham | 7 Nov 23 | XTEK Limited
Hope it comes up when you google it.
https://www.xtek.net/2022/11/10/stra...-scott-basham/

[silu]

Nice report. Good to see the shareholder range as well. I'm likely in the Top 200 lol.

[Sideshow Bob]

I followed this link from a post on HC.
https://henslow.com/news/research/xtek/

Always knew you were a professional Percy!!

[percy]

I loved how Scott said they had tripled revenue in the past 2 years and should triple it again in the next 3 years.
About the most exciting presentation I have watched..


PS.Sideshow Bob.
I admit I did a bit of a Trump..

pps.It really worked...lol

[silu]

New $4.1m SUAS Spare Parts Order Received From Defence
Key highlights:
• New $4.1m SUAS Spare Parts order received from Defence
• Order is part of the new multi-year Support Contract announced on 3 October 2023
• Support Contract directly linked to $26.9m new drone fleet order announced on 1 December 2022

https://stocknessmonster.com/announc....asx-3A630608/

[percy]

Strawman interview with Scott Basham.
Great interview..


https://www.xtek.net/2022/11/10/stra...-scott-basham/

[NZSilver]

Yes listened to this, it was quite good and I definitely got a better understanding of certain aspects of the business..most notably they are a re-seller of the drones in Australia and they have 1 customer being the Australian armed forces. Hence the reason for the push on their helmets/body armour as it is truly their own ip, this area has a lot higher potential margins and a significantly bigger market with almost continuous type order potential. Drone segment is a multi year contracts where the make 15% margin for the drones and then better margins for servicing/fixing them up but it is truly a "side hustle" in comparison to the armour divisions potential. Also a few good insights into Ohio move and potential DOD customers who currently are interested and have even give grants to xtek but can't purchase their gear until they are fully manafactured in the US. Scott also talked in-organice growth via aquisitions and it sounds like they will be very disciplined in making a purchase and have already looked over a few and "stepped aside" in his words after they weren't quite right - good to know they are being very careful here.

[DarkHorse]

From Livewire's recent profile of 5 companies which bucked the recent downtrend in small and micro-cap ASX companies:

(4) Xtek Limited (ASX: XTE)
Xtek Group operates two divisions: (1) Ballistics Division; and (2) Technology Division. The Ballistics Division designs, manufactures and supplies global military, law enforcement and first responders with advanced personal protection ballistic products and solutions for body armour, ballistic helmets and composite armour structures. The Technology Division manufactures and supplies global defence and security agencies with uncrewed systems and sensor payloads, and Australia-made software and local support.
During the month, Xtek announced they had secured a support contract from the Commonwealth of Australia’s Department of Defence to maintain and sustain the $26.9 million newly acquired fleet of small unmanned aerial systems (SUAS) from Xtek. The initial 4 year term is valued at $15.9 million with a further $29 million anticipated to be realised during the contract period. If all extensions are awarded (up to six years), and potential spares are used, the total contract value over the 10 year life of the contract is anticipated to be more than $110 million.
The Company delivered record revenues in FY23. In an investor update in October, the Company highlighted that the Group had a pipeline of leads at various stages worth more than $375 million, primarily driven by the Ballistics Division with the Company forecasting continued revenue growth in FY24. Ongoing uncertainty in Europe and continuing tensions in the South China Sea and those developing in the Middle East is expected to drive short-and-long term supply demand and strategic investment to upgrade with next generation products and solutions.
At the date of this report, consensus estimates are forecasting a 5% increase in revenue in FY24 with a 43.3% increase in normalised EPS.

[DarkHorse]

Not too shabby EPS growth for a company on a PE of 5 with $10mill in the bank.

[silu]

Keep them coming and make a mockery of the depressed share price

XTEK's HighCom Receives New A2.8m Ballistic Armour Order
https://cdn-api.markitdigital.com/ap...df02a206a39ff4