Quickstep Sales Increase 229% to $39.5 Million

Asia Pacific Defence Reporter // August 28, 2015

Advanced manufacturing company Quickstep Holdings Limited (ASX: QHL) today reported a 229% increase in sales to $39.5 million, up from $12 million in FY2014. Total revenue, including income from grants and tax rebates, was up 132% to $41.3, compared to $17.8 million. Aerospace manufacturing sales increased 181% to $33.7 million from $12.0 million, and income from the sale of Quickstep's technology for aerospace was $5.8 million. Quickstep's firm order book, which mostly comprises aerospace manufacturing work to be completed in the next two years, grew to $74.9 million at 30 June 2015. The company's net loss reduced to $3.9 million reflecting higher production and improved cash flow, compared to $11.2 million in FY14.

Quickstep managing director, David Marino, said: "Our aerospace manufacturing operations performed well being on or ahead of schedule by the year end. We delivered our first ever half year positive operating profit in H2 FY15 as sales of F-35 Lightning II Joint Strike Fighter carbon fibre doors and panels and C-130J wing flaps accelerated. Increasing manufacturing rates of JSF aircraft in the USA will drive production of Quickstep parts for the program in the next two years. Qualification prior to commencing manufacture of JSF vertical tail components is progressing well, with rollout expected to begin in the fourth quarter of FY2016, which will further accelerate sales growth.

"Consistent production of C-130 J wing flaps at a rate of three sets of flaps per month has showcased our ability to support global supply chains. This is an exclusive supply contract won by Quickstep against global competition and is expected to continue for several more years.”

"We are encouraged by winning our first contract with a global auto original equipment manufacturer, as it demonstrates the disruptive potential of our technology for curing carbon fibre faster and more efficiently. The German sponsored PRESCHE project in conjunction with Audi, completed after three years, has confirmed our Qure and resin spray transfer technology can outperform alternative technologies at volumes up to 10,000 parts per year. While our present focus is on securing niche volume contracts, we are investing in our technology to improve its volume production capability as part of a robot supported production cell primarily aimed at large volume parts principally for the automotive industry. We want to build on this achievement to develop 'RapidQure' to progress up to 50,000 parts per annum, offering a superior and more cost effective advanced manufacturing alternative.”

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