The Xtek Ltd (ASX: XTE) share price exploded today after the company provided a positive announcement to the ASX.
Xtek shares finished the day up 10.87% to 25.5 cents. This means that, in the past month alone, the defence contractor’s shares have risen by more than 45%.
What did Xtek announce?
Investors reacted positively to the company’s latest announcement, driving up the Xtek share price.
In its release, Xtek advised it received a purchase order for the urgent supply of specialist ballistic armour products. This came from an “undisclosed international customer”, suggesting it might possibly be for end-use in Ukraine.
Recently, the Australian government announced an expanded $21 million military support package for Ukrainian armed forces. This brings the total defensive military assistance for the former Soviet country to $91 million.
The latest Xtek order is valued at $3.2 million, with urgent delivery now underway.
The ultra-lightweight and high-performance body armour plates and ballistic helmets are manufactured in Columbus and Ohio. However, the patented XTclave capability is located in Adelaide, South Australia.
Most notably, the lightweight armoured plates are already being used by government agencies in Australia and Finland.
Commenting on the news driving up the Xtek share price today, CEO Scott Basham commented:
We supply these world-class, advanced personal protection ballistic products and solutions to militaries, law enforcement agencies, and first responder customers all around the world.
Xtek’s Ballistics Division is working at pace to manufacture our highly sought-after specialist ballistic products, and we are in constant discussions with many other international customers as they develop their ballistic armour requirements.
What does Xtek do?
Defence company Xtek specialises in a range of products for government agencies, law enforcement, military and space and commercial sectors.
Key products include ballistic armour, lightweight and tactical human load carriage equipment, robotic mechanical systems and unmanned crafts.
About the Xtek share price
Despite today’s strong gains, the Xtek share price has lost more than 50% in value over the last 12 months.
Its shares reached as low as 16.5 cents late last month, before rebounding to December 2021 levels today.
Based on valuation grounds, Xtek presides a market capitalisation of roughly $25.41 million.
The post XTEK (ASX:XTE) shares rocket on ‘urgent supply of specialist ballistic armour’ appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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