New F-35 contract and operating cash flow +ve                                                 

New contract to produce F-35 flare housings

On 31 July, QHL announced that it will receive funding to produce housings for an F-35Lightening II countermeasure flare. Engineering and production tooling to support the new business will be funded, in part, by the F-35 Joint Program Office via Victoria-based Chemring Australia - which is manufacturing the pyrotechnic and countermeasure infrastructure. Funding is also being received via a A$1m grant from a New Air Combat Capability – Industry Support Program (NACC-ISP). 

Collaboration with US-based Triumph Group(NYSE:TGI)

QHL appointed a senior Business Developmentleader in the June quarter. Management believes this will allow for moreregular and deeper engagement with existing and potential new US customers. Theappointment appears to be bearing fruit; we note anannouncement from Triumph Group, a US-based aerospace parts designer andmanufacturer, stating that it has signed a LOI with QHL to actively explore andcooperate in pursuing new business opportunities in the US and Australianaerospace and defence markets.