Ann: Quickstep Investor Strategy Presentation June 2015, page-13

Media response below to the QHL Investor Strategy Presentation as published in The Australian newspaper (04/06/2015).

Quickstep Holdings (QHL) 16c
The specialist in carbon composite technologies is starting to chalk up decent revenues on the back of the $US300 billion Joint Strike Fighter program, for which it supplies 21 different parts.

However, a bigger market looms: a disruptive technology for the car industry, enabling stronger and lighter panels

In an investor prezzo, Quickstep said it expected current-year sales of $30m, from $12m in the previous year and $13.4m in the first half.

Most of this relates to the JSF parts (supplied to Northrup Grumman) and componentry for Lockheed Martin’s C130J Super Hercules aircraft.

Revenue (including grants) is expected to exceed $35m.

Quickstep CEO Dave Marino says he’s confident the JSF program will ramp up to peak output of 200 aircraft a year, despite the frequent controversy enveloping the program.

Northrop Grumman is churning out 45-55 a year. Quickstep estimates the JSF will generate revenues for itself of “up to” $US700m.

The former head of Futuris Automotive, Marino has a 25-year automotive pedigree and this gives an inkling of Quickstep’s likely direction.

The driver, so to speak, is the aggressive emissions reduction targets adopted by the US and China, which can only be achieved with lighter cars.

Quickstep holders — who have seen their shares fall November’s 24c and their highest peak of 98c in 2007 — need to remain patient.

The company lost $4.5m in the first half but Marino expects a modest maiden profit in 2015-16. Spec buy.