RC Fornax PLC (AIM:RCFX) has started the new financial year by flooring the accelerator, and Cavendish points out the engine is really starting to turn over.
The defence-sector staffing group reported £2.5 million of new orders in the first quarter, more than 70% higher than the same period last year, with £2.2 million coming from new clients.
One of these is a newly announced UK public-sector space contract, a phrase that suggests NASA chic but in practice means someone, somewhere, urgently needing specialist engineers.
Cavendish says this sudden burst of demand offers welcome “visibility”. The broker makes no upgrades, having already reworked its numbers after a November placing.
Revenues are forecast to rise from £4.1 million to £5.8 million and then to £8.5 million by 2027.
Cavendish calls the shares “very lowly valued” and sticks to its 50p target price. The buy case is essentially that RC Fornax now has customers, money and momentum, in that order.
"The medium-term potential reinforces our existing target price, and we expect outperformance as the company starts to deliver on track with significant growth projections," analyst David Buxton said.
The shares were up 14% at 7p.