Shares in RC Fornax PLC (AIM:RCFX) rose 12.5% to 13.5p after the company was named a Specialist Provider on the Ministry of Defence’s newly updated engineering delivery framework.
The AIM-listed firm said the appointment gives it direct access to a major pipeline of defence work through the Aurora Engineering Partnership’s Evolve Provider Network.
The framework, part of the wider Engineering Delivery Partnership (EDP), handles a large share of outsourced MoD engineering services.
The updated structure has reduced the number of approved suppliers, but plans to allocate around 25% of total spend to smaller firms. Since launching in 2018, the framework has overseen nearly £2 billion in contracts.
RC Fornax said its new role will allow it to compete for work matched to its core skills and to collaborate with other network members.
The Evolve Provider Network is responsible for around 40% of the total revenue delivered through the EDP.
Chief executive Paul Reeves said the selection “reflects the continued confidence placed in RC Fornax’s specialist engineering capability and delivery model”.
He added that it keeps the company connected to key customers and builds on recent improvements in operations and hiring.
Broker Cavendish, reiterating its 50p price target, said: "We maintain our existing forecast expectations, with the shares seeing an encouraging uplift from recent lows, with further significant upside anticipated on the back of future potential contract newsflow."