XTE is shaping up very well from a TA and FA standpoint. Of course I'm quite bias with it now being one of my largest positions. Super tight capital structure, cash flow positive and $6m or so in the bank with a $41m MC
There was a presentation done a week back that outlines their strategy. Basically they onsell and service drones for the govtand produce a super strong and lightweight armour, will get around $20m of revenue per armour plant and expect their first online this year in Oz followed by several more. The production from the first plant is expected to be sold almost exclusively in the US market where they recently acquired a distributor.
Revenue has grown around 100% every year and it's looking like this one will be no different. Margin is now the main focus with growth performing but this should be fairly well sorted with the proprietary products coming online as well as the higher margin US revenue starting to feed in.
Revenue growth to date,
2016 $3.4m
2017 $9.0m
2018 $17.3m
2019 $37.9m
2020 (3 months) $15.6m with Oz govt + US Highcom sales + non Oz govt sales ($70-80m run rate)
On the TA front it's looking super strong, ran up to near a dollar from a 45c base then pulled back and doing some work in the 75-80c range. The catalyst to move out of this range and past a dollar is probably the start up of the SA plant and subsequent sales into the US which have been flagged.
