It really was a good year for Quickstep Holdings Limited (ASX: QHL), the leading advanced composites manufacturer, with the company announcing significantly accelerated sales growth of 368%, compared to 2013 financial year.
According to the media release, the company made $12.0 million from sales for the year ending 30 June 2014, with total revenue amounting to $17.8 million and net loss of $11.2 million – aligning with the company’s expectations.
“We are pleased to report that revenue grew in line with expectations and, based on our firm order book, we anticipate further significant growth in the current year. Quickstep saw considerable growth on all of our contracts. The Joint Strike Fighter program gained momentum, and we began to manufacture more complex components. The C-130J contract is progressing on schedule and we have an excellent relationship with Lockheed Martin. In the next few months we plan to boost production to three sets of wing flaps per month. The ORPE contract passed the critical design milestone and the Quickstep Systems plant is underway, with delivery expected in the second half of FY2015,” said Quickstep executive Chairman, Tony Quick.
“We made substantial progress validating our resin spray technology for the automotive sector, having submitted numerous tenders and demonstration parts; we are in advanced negotiations with an original equipment manufacturer. Innovation is the driving force supporting our ongoing growth. Our research and development expenditure on our own proprietary systems was $3 million in FY2014.”
Quickstep is the sole global supplier of C-130J wing flap components and currently has orders for 55 wing flap sets. Under its US$75 million Memorandum of Agreement with Lockheed Martin, Quickstep “completed all non-recurring work required to establish production and delivered seven sets of wing flaps for the C-130J “Super Hercules” aircraft”.
Quickstep also has a US$139 million Long Term Agreement (LTA) with Marand Precision Engineering, under which it is to supply approximately 700 sets of vertical tail parts to BAE Systems for the JSF. Deliveries are expected to commence in the second half of FY2015.
The company will continue to commercialise its patented resin spray transfer (RST) technology, and has established a plant at its Bankstown Airport headquarters to manufacture demonstration parts for potential customers.
Quickstep also reported that it expanded its staff as well, employing 116, including 105 in Australia.
Since demand for carbon fibre continues to grow, Quickstep expects numerous other opportunities to open up, to double its revenues again in FY2015 and to continue to tender for aerospace and defence supply chain contracts.