Titomic Limited Announces Robust Q4 FY24 Performance and Strategic Growth
TTT (TTT) Share Update July 2024 Monday 29th
Titomic Reports Strong Q4 FY24 with Major Sales and Strategic Appointments
Titomic Limited (ASX: TTT) has reported a strong quarter for Q4 FY24, driven by significant sales and strategic advancements, particularly in the global defence sector.
Instant Summary:
- High-pressure cold spray system sold to Triton Systems Inc., generating AUD 1.2m.
- Custom high-pressure cold spray system sold to OMIC R&D for USD 790,000 (AUD 1.2m).
- Advancement of significant global defence sector contracts worth AUD 476,000.
- Three cold spray systems sold to CTME, generating EUR 300,000 (AUD 495,000).
- Woodside Energy to deploy D523 for offshore corrosion remediation.
- Two additional D523 systems sold in the quarter, generating AUD 178,000.
- Material cash receipts forecast for Q1 2025 including AUD 2.1 million from OMIC, Sabanci University, and the Royal Netherlands Army.
Quarterly Sales and Strategic Developments
Titomic Limited has announced a series of significant sales and strategic developments for Q4 FY24. The company sold a high-pressure cold spray system to Triton Systems Inc. for AUD 1.2 million, enhancing its partnership with Triton and integrating its technology into the defence and commercial sectors.
Additionally, a custom high-pressure cold spray system was sold to the Oregon Manufacturing Innovation Center (OMIC R&D) for USD 790,000 (AUD 1.2 million). This sale highlights Titomic's ability to meet industry standards and expands its global defence presence.
Defence Sector Engagements
Titomic reported significant advances in the global defence sector, securing contracts worth AUD 476,000 with international defence prime contractors and key suppliers. These engagements highlight Titomic’s growing presence and revenue generation in the defence industry.
Furthermore, the company sold three cold spray systems to Fundación Centro Tecnológico Miranda de Ebro (CTME), generating EUR 300,000 (AUD 495,000). This sale enhances CTME's operational flexibility and broadens its scope for diverse cold spray applications.
Technological Deployments
Woodside Energy has engaged Monadelphous Group to use a D523 low-pressure cold spray system for corrosion remediation on its offshore gas platform. This marks Titomic's first on-site application of its cold spray technology in the Australian oil and gas industry.
Additional sales include a D523 system to Alliance Singapore, generating AUD 73,228, and another D523 system to Aircraft Specialties Inc. (ASI) for USD 70,000 (AUD 105,000). These sales further strengthen Titomic's presence in the aerospace and oil and gas industries.
Post-Quarter Developments
Since the quarter end, Titomic has made significant strides towards commercialisation with the Repkon Titomic joint venture, selling a TKF 1000 cold spray system for AUD 2.3 million. This system will play a pivotal role in revolutionising barrel manufacturing at the new facility in Turkey.
Titomic also appointed Dr Patricia Dare to lead its U.S. defence and aerospace initiatives. Dr Dare's extensive experience in the defence industry will be invaluable in propelling efforts in this critical market.
The series of sales and strategic advancements reported by Titomic are likely to have a positive impact on the company's stock price. The significant sales in the defence sector and the strategic appointment of Dr Patricia Dare are expected to boost investor confidence and drive further growth.
Investor Reaction:
Analysts are likely to react positively to Titomic's strong performance and strategic advancements. The company's growing presence in the global defence sector and the successful deployment of its cold spray technology in various industries are expected to be seen as positive indicators of future growth.
Conclusion:
Investors should monitor Titomic's continued growth and strategic advancements, particularly in the defence sector. The company's strong performance in Q4 FY24 and its strategic initiatives position it well for future success. Investors are encouraged to stay informed about Titomic's developments and consider the potential long-term impacts on their portfolios.