Quickstep Holdings Ltd

Cyan C3G Fund continues to hold Quickstep Holdings Ltd (QHL) despite a disappointing performance following the announcement of a $1.25m contract with drone manufacturer Carbonix. Given the company’s modest market capitalization of $20m, even a small, specialized, and profitable contract like this holds significant value. Beyond this, Quickstep is expanding its domestic MRO (Maintenance, Repair, Overhaul) services for Jetstar and taking steps to establish a defence manufacturing facility in Kansas, USA. This expansion could be supported by existing defence contract customers and potentially US government funding, representing a potential step-change for the business. While QHL’s recent performance has been underwhelming, Cyan C3G Fund remains optimistic about the company’s growth potential, especially as it diversifies and scales its operations both domestically and internationally.

Cyan C3G Fund continues to hold its position in Quickstep Holdings Ltd (QHL), an advanced manufacturing business that the Fund has been invested in for some time. The Fund was initially attracted to Quickstep's carbon fibre manufacturing technology, blue-chip clients like Lockheed Martin and Northrop Grumman, and its strong revenue base of nearly $100m, all while maintaining a modest market capitalization of around $30m. Recent share price gains reflect the broader market's growing recognition of Quickstep's value, bolstered by a positive business update that exceeded revenue forecasts, highlighted cost-saving initiatives, and noted record revenues from its drone production division. Cyan has also highlighted Quickstep’s attractive relative valuation, comparing it to other manufacturing companies such as Titomic (ASX:TTT) and DroneShield (ASX:DRO), which further underscores the company's potential. With solid financials and strong client relationships, Cyan C3G Fund sees significant upside in Quickstep's growth trajectory.

Cyan C3G Fund continues to hold its position in Quickstep Holdings Ltd (QHL) despite a recent 27% decline in share price following a strong performance in July. The company recently announced the closure of its loss-making Aerospace Services division, which is expected to streamline operations. Quickstep also reported full-year results with revenue of $99m, surpassing the top end of guidance by $3m. Notably, the company showed underlying profitability and positive cash flow from its continuing operations. Cyan C3G Fund believes Quickstep remains significantly undervalued, with a market capitalization of around $20m, which is low compared to similar ASX-listed aerospace companies. While volatility may persist, the Fund expects the company’s improving performance to drive continued upward movement in the share price over the longer term.

Cyan C3G Fund continues to hold its position in Quickstep Holdings Ltd (QHL), despite a 19% decline in the stock following a takeover offer in early November. While the offer initially presented a large premium, the fund believes that there is still significant underlying value in Quickstep's business. The absence of insider trading and the stock’s current trading at the takeover price further reinforce the fund's view that the company’s intrinsic value remains intact. Cyan C3G Fund has decided to hold onto its shares, as the potential for further value recognition remains, aligning with the market’s perception of the company.

Cyan C3G Fund continues to hold its position in Quickstep Holdings (QHL), following a takeover offer from ASDAM at $0.40, representing a 105% premium to the last sale price. ASDAM, the holding company for Marand, has strong ties with Quickstep through its work for Lockheed Martin on the C-130 Hercules program. Quickstep has made substantial progress in restructuring its operations, including the closure of unprofitable business lines, positioning the company for significant profitability improvements in FY25. Despite the generous bid, which reflects a recent stock level, the Fund anticipates a potential increased offer or counterbid. The company is also working on a business valuation, and Cyan C3G Fund expects this process to unlock further stock value, reinforcing the attractiveness of holding the position for the time being.

Cyan C3G Fund continues to hold its position in Quickstep Holdings Ltd. (QHL) following the company’s entry into a Scheme Implementation Deed, marking a friendly takeover offer at $0.575 from ADSAM, the holding company for Marand. This transaction is subject to no “Superior Proposal,” and Quickstep’s directors have approved it. The stock’s recent performance has been strong, with a 41% increase, and the Fund remains optimistic about the potential for an increased bid or a counteroffer, as the stock had previously traded at this level only a few months ago. Given the improved trading conditions and the likelihood of a new bidder entering the mix, Cyan C3G Fund continues to hold its shares, with the expectation that further developments may enhance shareholder value.