Composites manufacturer Quickstep Holdings grew sales, margins and profits in the 2020 financial year as all key production contracts in defence and aerospace achieved growth.
The Bankstown, Sydney-based company booked earnings before interest and tax (EBIT) of $4.6 million on sales up 12 per cent for the year to $82.3 million.
Sales margins rose 25 per cent to 10.1 per cent.
During the year Quickstep saw substantial growth in its contracts to make parts for the tails of the F-35 Lightning joint strike fighter, the C-130 Hercules wing flaps and its new Geelong site saw its first commercial business.
Geelong is supplying parts for Micro-X’s Nano portable X-ray machines and for Lockelec train ramps.
Work with Boeing on F-15, F/A-18 and AV-8B Harrier aircraft expanded.
The company invested $6 million funded by bank debt and grants of $400,000 on new equipment and facilities, including for MJU-68 aircraft flare housings which are a new product for the company in association with Chemring Australia.
Some grants came from the US Department of Defence to establish a reliable second source of parts.
Part of the investment went to process improvements, new production technologies and efficiency measures.
The company announced a new aerospace development programme underway with Spirit Aerosystems and a second programme with an as yet un-disclosed OEM manufacturer.
Quickstep sees opportunities in announced greater spending by Australia on unmanned aircraft, guided weapons and maintenance.
It exects growth in revenues of five to 10 per cent in the year ahead without any new contract wins.
Picture: Quickstep Holdings
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