Jun 7, 2018

Share Café/Livewire – ‘The New Criterion: Quickstep Takes To The Air’ by Tim Boreham, Wednesday 6 June 2018

  • Carbon components specialist Quickstep is flying high with an ongoing parts contract for the Joint Strike Fighter program, but investors remain wary because the company is yet to turn a profit.
  • Quickstep’s recently-appointed CEO gives a succinct explanation for why shares in the Bankstown Airport based carbon composites maker are trading at close to record lows.
  • “We have been listed for 12 years and have never made a profit,” Mark Burgess says. “We have made a lot of promises and fuelled expectations, but not met them.”
  • Yep – that about sums it up. But in the words of Bob Dylan, the times are a changin’ and when Quickstep management talks about earnings these days it’s not just blowing in the wind.
  • Quickstep’s revenues derive from two key sources: long-term contracts to supply parts for the Joint Strike Fighter (JSF) and the Hercules C-130J, an updated version of the old warhorse of the skies.
  • The US JSF program is the biggest military project in history and worth so much that we have run out of noughts.

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