The Xtek Ltd (ASX: XTE) share price is soaring higher today. This comes after the company updated the market with its annual general meeting (AGM) presentation.
The release has excited investors, sending the Xtek share price to 62 cents, up 7.8%. In comparison, the All Ordinaries Index (ASX: XAO) is down 0.5% to 6,811 points.
What's driving the Xtek share price higher?
In its AGM presentation, Xtek spoke positively about its recent achievements and long-term future, including the successful acquisition of United States-based HighCom Armor, which will provide an introduction for XTek's XTclave products to United States government and law enforcement customers. The company's lightweight armoured plates are already being used in Australia and Finland.
XTek noted that a new range of armour products has now been developed for the United States. This follows the United States Department of Defence order for testing and qualification purposes. Sales have seen substantial growth over the last 12 months, with the company focused on broadening its distribution channels.
Management commented on the year-on-year growth that Xtek has experienced over the last four years. Revenue has jumped from $9 million in FY17 to a record $42.7 million in FY20, reflecting a 374% increase.
The company has also shifted around its revenue mix during the year. Its proprietary products, and small unmanned aerial systems (SUAS) supply and support business have all risen in gross margin value.
Looking ahead, Xtek is targeting opportunities in its United States recurring ballistic sales, currently worth $14 million per year. In addition, the recent Finnish $2 million XTclave order is expected to yield further contract awards. In total, Xtek sees up to $70 million in near-term prospects across its entire portfolio.
The company also reports that its medium to long-term target is $100 million in revenue, which it plans to achieve through a number of activities including expanding its United States distribution and manufacturing base and establishing new networks for exports.
About the Xtek share price
The Xtek share price is down 17% since the beginning of the year. Although its shares are higher over the last month, up 10.7%, the company is 32% down from its 52-week high.