Quickstep looks to expansion locally and in the US

Aerospace composites manufacturer Quickstep has flagged expansions in Australia and potentially the United States as it reported sales up slightly on last year and an underlying operating profit.

The Sydney company reported sales for Q4 were four percent down on the same period last year and full year sales up five percent.

Sales are being made with a leaner production staff and more consistent production volumes following the restructure of its aerospace structures business, allowing the company to report a positive underlying EBITDA profit for the year.

However while full year operating cashflow was $2.2 million, Q4 operating cashflow was negative $500,000.

Investors marked down the company's shares which at one point were down 10 percent – Quickstep shares have been rising in recent months as the structural changes in the business and rising drone sales were announced.

However Quickstep was upbeat and told investors: “Guided weapons and drone opportunities continue to be the focus of our engagement with major customers and governments in Australia and the USA.

“Our planned US market entry strategy continues to evolve as customer and programme requirements crystalise.

“As requirements are clarified, we are factoring this into the designs and capabilities we intend to expand in Australia and potentially activate in the US.”

The company said it was well placed to adapt its strategy given its market reputation, flexibility and strong technical capabilities.

“Expanding onshore Australian capability in aircraft Maintenance, Repair and Overhaul continues to provide tailwinds to Quickstep’s services business unit.

“We are actively engaged with commercial airline customers and have seen an uplift in engagement from the defence segment in recent months.

“Our partnership with (Singaporean company) ST Engineering continues to strengthen, enabling us to deliver strong local capability with support from one of the global leaders in the industry.”

Quickstep said it was focused on executing against its plans to improve efficiency and productivity whilst delivering sustainable growth and profitability.

Q4 Sales in the business growth segments of services and drone production were up 50 percent and 17 percent respectively.

Further reading:
Quickstep restructures its aerospace structures business

Picture: Quickstep