Advanced composites manufacturer XTEK has reported a gross loss of $3.2 million in the six months to December 31 as it continued to invest in product and market development and in production facilities for its defence industry products.
The loss, made on turnover down $3.6 million on the previous corresponding period to $12.4 million, came despite buoyant demand from US military customers for its ballistic armour products and the delivery of unmanned aerial systems (UAS) to Australian forces.
The company said the loss was due to substantial R&D investment, the integration of its US acquisition HighCom, development of its XTatlas software for UAS systems and its robotic systems sensor payload SARBI.
An order for XTatlas software has been received from the Danish Defence Force
During the half XTEK continued to invest in its Adelaide manufacturing centre, partially funded by $1.8 million in Sovereign Industry Capability Priority grants.
Production is being ramped up to produce 80,000 ballistic armour plates and 40,000 ballistic combat helmets (main picture) per annum.
XTEK is in the process of commissioning a second larger production machine utilising its proprietary XTclave composite materials curing and consolidation technology.
During the period XTEK raised $12.1 million from investors.
Picture: XTEK/ballistic combat helmet during manufacture/XTclave production system
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