Quickstep grows but currency change mars profit

Aerospace composites manufacturer Quickstep has reported steady growth in sales for the first half of FY21 with sales up eight per cent to $41.5 million, the rise attributable to the company’s involvement in making tail sections for the F-35 Lightning jet fighter.

However the rising Australian dollar hit EBITDA margin as did the end of a payroll tax concession.

An increase in R&D spending on the company’s proprietary AeroQure composites production process was partly offset by lower corporate and business development spending.

Underlying profit before tax was $1.1 million, a 57 per cent rise from the previous corresponding period.

It was business as usual for Quickstep’s production contracts for the F-35 and the C-130J Hercules transport.

During the period the company advanced business development activities, taking over Boeing Australia’s component repair facility at Melbourne’s Tullamarine airport.

“Negotiations are at an advanced stage on the establishment of a long term business agreement between Quickstep and Boeing Defence Australia.”

Boeing is developing the Loyal Wingman autonomous jet fighter in Australia, though manufacturing details have not yet been revealed.

Quickstep is also pursuing strategic relationships with health care logistics firm Volansi and with lithium ion battery casing developer, Vaulta.

Picture: Quickstep/Bankstown, Sydney facility

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