XTEK secures US government contract
17 August 22
The ASX-listed company has been awarded a multi-million-dollar deal to supply protective kit to the US government.
XTEK Limited subsidiary HighCom Armor Solutions (HighCom) has secured a $2.7 million contract from an undisclosed US federal government agency.
The company has been tasked with supplying specialist body armour and ballistic helmets before the end of the first quarter of the 2023 financial year (Q1 FY23).
The order, which reportedly comprises of thousands of individual items, is set to be built, shipped, and delivered from the company’s facility in Columbus, Ohio.
“HighCom Armor is a trusted provider of high performance, life-saving, ballistic personal protection equipment to federal, state, and local law enforcement agencies across the United States and around the world,” Scott Basham, XTEK group CEO, said.
This latest multi-million-dollar order builds on US$11 million (~AU$15.6 million) in orders recognised in Q1.
HighCom is also currently in the process of completing two final shipments as part of a US$33.2 million (AU$48.2 million) order received in May.
“It’s exciting to say, but FY23 is already shaping up to be even more promising than what FY22 was for the group,” Basham added.
The products, billed as “ultra-lightweight” and “high-performance”, are manufactured with the support of the patented XTclave capability in Adelaide, South Australia.
In 2019, XTEK acquired HighCom in a bid to enhance its focus on proprietary products, accelerating XTclave commercialisation through ballistic protection products.
HighCom also provides XTEK with access to an expanded distribution network in the United States.
In June, XTEK Limited also received an $8.1 million purchase order from the Commonwealth of Australia’s Department of Defence for small unmanned aerial systems (SUAS) spare parts for existing SUAS fleets.
A two-year extension option was also signed for the SUAS support contract, extending the deal to July 2024.
Source: Defence Connect