Quickstep Holdings Limited announced unaudited earnings results for the second quarter and first half of fiscal 2016. Sales for the second quarter of fiscal 2016 were $11.6 million. Production of parts for the F-35 Lightning II Joint Strike Fighter (JSF) and C-130J Hercules continues to increase. Operating cash outflow for second quarter of fiscal 2016 was $2.4 million. Second quarter of fiscal 2016 operating cashflow was impacted by sales and customer payment timing and the investment of circa $1 million in inventory ahead of capital work shuts and ramp-up of the JSF vertical tail program. Quickstep commenced a capital expenditure program in second quarter of fiscal 2016 to support future contracted growth, with a $0.8 million spend in second quarter of fiscal 2016. The net increase in cash for the quarter post loan repayments, capital raising costs and capital spend was $12.7 million.

The company achieved an unaudited positive operating profit in first half of fiscal 2016; following on from a profitable second half of fiscal 2015. Operating profit in the first half of was generated by Aerospace Manufacturing; offset by some one-off costs and the ramp-up of R&D investment to support future growth, with $1.2 million expended in the period. Operating cash outflow of $0.8 million for the half year.

The company provided sales guidance for the full year of fiscal 2016 and cash flow guidance for the third quarter of fiscal 2016. The company expects fiscal 2016 sales of $48 million, which represents annual sales growth of 20% compared to fiscal 2015.

It is expected that the company will return to positive cash flow in third quarter of fiscal 2016.