WHY WE LIKE IT
After the Government’s confirmation a month ago of the purchase of 58 more fighter jets for $28bn, Australia is now the second largest purchaser of the Joint Strike Fighter (JSF) jet outside of the US, with 72 on order. This is very important to Quickstep as it underwrites further supply, whether it’s for existing or new parts. The company’s existing contracts for carbon fibre production underpins its value, but this could literally take off if it secures an agreement with an automotive company for its technologies which reduce the cost of utilising this lightweight material.
WHAT'S NEW?
Quickstep have signed an agreement with aerospace giant BAE systems and Melbourne based parts assembler Marand to provide Vertical Tails for the JSF for 20 years, worth $140m. The group is now on track to produce revenues from conventional carbon fibre production of $17m this year, and $35m next year. This could increase to up to $100m a year in the next five years. Over this time frame, its two technologies could produce revenues of half that, but with double the profit margin.
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