XTEK (ASX:XTE) wins AU$46.8M purchase order from international customer

May 27, 2022 05:14 PM AEST | By Sonal Goyal

XTEK (ASX:XTE) wins AU$46.8M purchase order from international customer — Image source: © Palinchak | Megapixl.com

Details of the AU$46.8 million

XTEk has received an order for specialist ballistic armour. According to the ASX-announcement, the client requires the product on an urgent basis.

XTEK has not provided specific contract details. One of the key terms of the purchase order is that the entire AU$46.8 million payment will be paid in advance. In addition to this, the management has confirmed that the prepayment has occurred.

The products to be supplied will be manufactured at the Columbus Ohio facility.

XTEK informed the market that its HighCom logistics team is working on getting the guaranteed supply of the raw material required to fulfil the order. The supplier of XTEK is located in Europe and the US. The management expects that circa 40% of the order will be supplied by the end of the financial year 2022. The rest of the order is expected to be delivered by the first quarter of FY23.

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With this huge order, the value of the Ballistic armour contracts reached AU$64.4 million (since 1 March 2022). The value of the total new contracts now exceeds AU$69.5 million since March 2022.

Image source: © Tomwang112 | Megapixl.com

Another update came from the camp of XTEK. The company said that a large number of inbound enquiries are received. The business development and international sales team are engaged with the international firms to secure a supply contract. Considering the existing uncertain global security environment, the Group expects no reduction in the enquiries.

Ceo of XTEK Group, Scott Basham, commented on the development:

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