Filtronic PLC (LSE:FTC), the technology manufacturer, was marked 6% higher on Monday after winning a new contract with FTSE-250 constituent QinetiQ Group PLC (LSE:QQ.).
The deal is valued at £2 million for phase one of the contract and revenues are expected to be recognised over the next two years.
As part of the contract, Filtronic will develop a radio frequency subsystem for a range radar solution which would be used either on a vehicle-mounted land system or a helicopter-mounted mobile solution.
The London-listed group said that through working with the defence and security giant it will be able to draw on its expertise in the design, assembly and tuning of complex radio frequency products.
Richard Gibbs, Filtronic's chief executive officer, said: “Winning this contract with a multinational, world-class defence technology company such as QinetiQ, is an important strategic development as we add a target client to our customer register and broaden the customer base.
“We look forward to working with our new customer to develop the product, deliver the final solution and build further on the relationship."