Quickstep Holdings Limited (ASX: QHL) shares are sinking today after the company provided a business update last night. At the time of writing, the Quickstep share price is down 8.45% to 6.5 cents.
Let's take a closer look and see what the carbon fibre composites manufacturer updated the ASX market with.
Business update
Investors are selling down the Quickstep share price after the company revealed a disappointing update.
According to its release, Quickstep advised it has received notice from Chemring Australia that its tender for the MJU-68B flare housings contract has not been successful. This follows a recent proposal in which Quickstep would supply MJU-68 decoy flares from its custom-built flare housing manufacturing facility during FY21 and FY22.
As a result of the decision, Quickstep has issued a formal protest to both the United States and Australian Departments of Defence. The company stated that it will provide an update to its shareholders if there are any further developments.
Quickstep noted that its FY21 guidance released in its half-year results did not include the proposed supply of MJU-68B flare housings.
Quick take on Quickstep
Founded in 2001, Quickstep is an Australian-based company focused on providing advanced composite materials for important industries. These include aerospace, defence, marine, automotive, and other transportation sectors.
Most notably, the company has an impressive list of clients such as United States behemoths, Northrop Grumman, and Lockheed Martin. In addition, BAE Systems and Boeing are also recognised partners of Quickstep.
Quickstep share price snapshot
The Quickstep share price has moved around 8% higher in the past 12 months but is down roughly 28% year to date. The company's shares were hit particularly hard during the middle of February, a week before it revealed its half-year scorecard.
Based on current valuation grounds, Quickstep has a market capitalisation of about $47.2 million, with over 716 million shares outstanding.
