The natural disasters hitting Australia – Covid-19, absenteeism and sickness, and troubled international supply chains have hit aerospace composites manufacturer Quickstep, forcing it into a loss.
The Bankstown, Sydney company said absenteeism and sickness were continuing and continues to average 12 percent, while the recent Sydney floods – worsened by the granddaddy of all disasters, climate change – had also disrupted manufacturing.
Supply chain issues and equipment faults exacerbated by a global shortage of spare parts also played their part.
Quickstep told investors: “The net impact of these operational challenges has been a reduction of anticipated revenue against forecast of spproximately 32 percent between April and June CY22.
“The revenue shortfall is comprised solely of firm demand and is expected to to be progressively recovered during the course of FY23.”
Quickstep is now expecting an unaudited underlying loss before tax of approximately $1.3 million for FY22.
The company already has a transformation program underway which has reduced headcount in support functions and seen an annualised saving of $1.3 million in costs.
Now the company has launched a resource deployment within the group which will realign resource allocation from lower growth parts of the business to higher growth areas.
New roles will also be created in marketing and business development.
Picture: Quickstep/Bankstown autoclave
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