RC Fornax PLC (AIM:RCFX) chief financial officer, Rob Shepherd, talked with Proactive about the company’s latest results, operational transformation, and the strong order visibility underpinning expectations for significant growth in FY26.
Shepherd explained that while the recently reported statutory results reflect the business through August 2025, RC Fornax today is “a fundamentally different business.” Over the past six months, the company has strengthened governance by appointing experienced defence-sector non-executives, introduced a new sales director to improve conversion of pipeline opportunities, and brought in a technology and innovation manager driving new initiatives — including space-related projects.
A key highlight is the company’s growing order book. Shepherd said: “Through the first half, we've got some £4.3 million worth of orders in the pipe… and we can see the steady increase year on year.” This visibility underpins guidance for at least 40% sales growth, with the company targeting revenue just shy of £6 million for FY26.
Shepherd also discussed the potential upside from the delayed Defence Investment Plan (DIP), noting that once clarity is provided, major agreements could convert “very quickly,” creating acceleration opportunities.
In addition, SME Procure — now at minimum viable product stage — aims to streamline defence procurement, reduce costs and improve speed by digitally matching buyers and suppliers.
Proactive: Rob very good to have you in the studio.
Proactive: You are out with results this week and the investor reaction really focused on last year's performance. But those numbers reflect a very different business to what we see today. Take us through what's happened over the past five months.
Rob Shepherd: We changed auditor last year and these are our first set of statutory accounts, presenting results through the end of August 2025. In the last six months the business has transformed materially. We’ve changed two of the three non-executives on the board, bringing in around 65 years of additional relevant defence industry experience.
We appointed a new sales director in October, transforming the rigour around the sales process and improving conversion of leads into orders. A new technology and innovation manager has also joined, driving initiatives including recently announced space work. In addition, the managing director has taken effective day-to-day operational control since August. While the headlines reflect August 2025, this is now a fundamentally different business.
Proactive: How have those changes strengthened execution and governance?
Rob Shepherd: Governance has strengthened significantly. With a strong institutional investor base, monthly challenge and oversight is essential. Richard Smith, previously CFO of large defence companies, brings financial rigour. The board ensures strategy remains on track and helps avoid past mistakes through experience and mentorship.
Proactive: You’re forecasting at least 40% sales uplift despite delays to the Defence Investment Plan. What underpins that confidence?
Rob Shepherd: It’s the order book we’ve built. Through the first half, we have around £4.3 million worth of orders across FY26 and FY27. We see steady year-on-year increase and strong engagement with blue-chip customers. The real upside comes once political uncertainty clears.
Proactive: How quickly could major agreements convert once the DIP is published?
Rob Shepherd: Very quickly. While start dates are often delayed, delivery dates are not. That creates pressure for customers and opportunity for us, supported by our available talent pool to scale rapidly.
Proactive: SME Procure is at MVP stage. How transformative could this be?
Rob Shepherd: It’s transformational. It aims to match buyers and sellers, reduce procurement cost and time. It digitises what we already do offline and could significantly improve scalability.
Proactive: You ended FY25 with £900,000 in cash and raised £2.1 million in December. How are you balancing discipline and investment?
Rob Shepherd: We are ready to scale from a base of 24 people. AI tools are reducing non-value external costs and improving efficiency, enabling us to do more with less.
Proactive: What milestones should investors watch for?
Rob Shepherd: We have line of sight on around £4.5 million in orders and contracts. We are targeting revenue just shy of £6 million in FY26, with potential upside depending on the Defence Investment Plan.