The Xtek Ltd (ASX: XTE) share price has surged higher today on the back of a positive market update. At the time of writing, the Xtek share price is up 3.45% to 60 cents. This compares to the All Ordinaries Index (ASX: XAO) which is down 0.42% to 6,051 points.
Defence company, Xtek specialises in a range of products for government agencies, law enforcement, military and space and commercial sectors. Its key products include ballistic armour, lightweight and tactical human load carriage equipment, robotic mechanical systems and unmanned crafts.
The Xtek share price was on the move after the company announced it has completed delivery of the first batch of its XTclave manufactured plates to CPE Production OY in Finland. The company said that the shipment of 250 plates will be used by the Finnish Defence Force.
The delivery follows the initial commercial purchase in May and subsequent upsized order in June. The total value of the deal is $2 million.
The company said the acceptance of the plates is one of five Xtek products that are already qualified. The next deliveries are to be fulfilled in the near term, which will complete the contract.
Xtek Managing Director, Mr Phillipe Odouard, commented that the company is confident of continuing to make tailwinds. Mr Odouard said:
We are proud to be able to complete this initial delivery on the back of a long-standing relationship with Finnish Defence. The delivery provides validation of our technical capabilities and products, as well as our international commercialisation strategy.
We continue to make strong progress with other potential customers, including in a range of different channels in the US.
Should you invest in the Xtek share price?
I think that Xtek is an exciting company along with other players in the defence sector such as Electro Optic Systems Holdings Ltd (ASX: EOS). While Xtek is a much smaller company, valued at around $41 million, the potential use for its applications is enormous.
In light of this, I will be adding the Xtek share price to my watchlist and keeping a close eye on its performance over the coming months.