Security tech company XTEK (ASX: XTE) has continued its strong association with the Australian Defence Force with the ADF placing an order for additional unmanned aerial systems worth approximately $2.8 million. 

The order will increase the ADF’s existing fleet of AeroVironment WASP AE Small Unmanned Aerial Systems (SUAS) with XTEK having already delivered 50 to date. 

“The supply and maintenance of SUAS remains an ongoing focus for XTEK,” said Managing Director, Philippe Odouard. 

“Our SUAS business underpins our increasing revenue, with recurring attributes. In addition, our facility in Canberra is in full operation providing critical repair and maintenance services to support the ADF’s growing SUAS fleet. 

“We are the full-service SUAS supplier of choice for the ADF and look forward to continue servicing our Defence Force.” 

Under the long-term contract secured in 2019, XTEK delivered $8m in ADF goods and services through FY20 which although a major client, was less than a quarter of XTEK’s expected $42m revenue for FY20. 

The defence sector appears to be XTEK’s core growth market as Governments around the world are increasing spending on autonomous systems which focus on soldier survivability. This is leading to significant research funding being investing in drone and unmanned aerial vehicles which present as the next forefront of modern warfare. 

XTEK’s expected $42m revenue for FY20 would represent a 10% increase on FY19 which is being driven by their SUAS supply and support, as well as strong performance of HighCom in the United States, a body armour and personal protective equipment company acquired in July 2019. 

Since the acquisition, XTEK has launched XTClave, a high margin ballistics business with networks across the United States. In May 2020, XTEK reported the first international commercial orders for their next-gen lightweight XTClave ballistic plates.