In a milestone year, aerospace and defense firm has witnessed its shares rise over 77 percent year-to-date.
Quickstep (ASX:QHL), a carbon fiber manufacturer that is focused on defense and aerospace industries announced a AU$5.6 million rise in year-over-year net profits, rising to Au$2.7 million. Heightened defense procurement help drive revenues as operating cash footed AU$1 million and earnings before interest, tax, depreciation and amortization rose by AU$5.4 million.
As quoted in the press release:
A maiden full year net profit after tax of $2.7 million represented a $5.6 million improvement on the previous year, and included a $4.6 million lift in EBITDA and $1.0m tax benefit reflecting future taxable income. The company also delivered $0.4 million operating cash flow for FY19, its first full year positive result, and at 30 June 2019 reported net debt of $0.3m, a reduction of $11.2 million from 31 December 2018.
Operating cash flow improved year on year by $1.0 million despite a $3.1 million increase in working capital, principally inventory to support our growth. The much improved debt position was in large part attributable to the successful share placement and Share Purchase Plan (SPP) in early 2019 that raised $11.7 million net of fees. These funds were used to strengthen our balance sheet to allow flexibility to accelerate future growth projects and reduce debt.