Increasing their presence in the global defence industry where players are constantly seeking to one-up their rivals, cold spray tech company Titomic (ASX: TTT) has secured another win with new contract orders totalling $476k.
The series of high-value projects come from major international defence primes and suppliers, marking a crucial step forward for Titomic’s innovative cold spray solutions in the global market.
As of May 2024, $64k has already been recognised as revenue, with an additional $412k expected to be realised by the second quarter of FY25.
Herbert Koeck, Managing Director of Titomic commented, “”We are thrilled to have secured these engagements with international defence primes and key suppliers to the global defence and aerospace sectors.
“We are working closely with our partners to apply Titomic’s industry-leading cold spray capabilities in these new applications encompassing defence component design and supply, and research and development manufacturing projects. These projects present significant long term revenue generation opportunities for Titomic as adoption of our technology expands within these projects and within the broader defence sector.”
Cold spray technology, which involves the acceleration of metal powders at high velocity to build or repair components without melting, offers unique advantages in the manufacturing and repair of defence equipment. This technological edge is particularly relevant in a sector that demands high precision, durability, and performance under extreme conditions.
Due to the sensitive nature of these defence contracts and strict regulations governing information disclosure, Titomic did not provide specific details about the projects or the identities of the contracting parties. The company has indicated that such details are protected under the concept of ‘trade secrets’, ensuring compliance with national and global security concerns.
For the Half Year ended 31 December 2023, Titomic reported $4.2 million revenue which represented a 51% increase on the previous corresponding period. The Company incurred a $5.9 million net loss after tax over the same period but has propped up its cash position with an institutional Placement in April 2024 that raised $4.5 million (before costs) at an Offer Price of $0.05 per share.
Prior to the news of these new defence contracts, TTT shares last closed at $0.08.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, bloodstock enthusiast and former Analyst.
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