Shares in Narf Industries PLC (LSE:NARF) rose 16% to 0.61p after the cybersecurity group landed a $3.6 million contract from a US government research agency, lifting the value of government R&D awards secured over the past year to more than $10 million.
The two-year deal, which spans the current and next financial years, will fund work on new ways to speed up computer system recovery after cyber-attacks.
It arrives at a time when US agencies are pushing for tougher cyber resilience, greater use of artificial intelligence and faster restoration of critical systems.
Narf said demand for applied research that can move quickly into real-world capability is rising, creating openings for companies able to translate innovation into operational tools.
It added that its focus on mission-aligned proposals with clear transition paths had helped it stand out in a shifting government R&D market.
Chief executive Steve Bassi said the contract showed the company’s strategy was working, noting that cumulative awards now provide the cash flow needed to advance and scale its programmes, including the development of its Ranger.ai platform.
He said opportunities for Ranger.ai were “progressing well”, with the company expecting first contract awards in early 2026.