The engineering consultancy says external threats facing the UK are intensifying, boosting appetite for its value-for-money approach
Demand for the services of RC Fornax PLC (AIM:RCFX), the AIM-listed defence engineering consultancy, is growing as mounting security threats and budget constraints push the UK military to seek greater value from existing spending, the company's chief executive said.
In an extract from his address to the company's first annual meeting later on Tuesday, Paul Reeves told investors: "Whilst political uncertainty continues, the need for our outcome‑driven services is greater than it was twelve months ago.
"The external threats facing the UK are increasingly real, and funding pressures across defence persist. Our focus on delivering greater value for money within existing budgets is resonating strongly, resulting in increased high‑quality engagement at senior levels across government, the armed forces, and both current and prospective clients.
"This applies not only to our core engineering consultancy services but also to the AI‑driven procurement tools we are developing through SME Procure."
At the meeting, he will acknowledge that financial progress had been slower than he had anticipated at the time of the initial public offering (IPO).
The accounts presented to shareholders cover the year ended 31 August, a period Reeves described as challenging, driven by political uncertainty surrounding the government's Strategic Defence Review and by weaknesses in the company's own sales processes.
RC Fornax has since moved to address those internal shortcomings, installing two new independent non-executive directors and strengthening its executive management committee.
Reeves said those changes were already producing results, with improved commercial momentum and greater visibility over the company's pipeline of potential contracts.
The company's pitch centres on delivering better outcomes for defence clients without requiring additional budget, an approach Reeves said was generating stronger engagement at senior levels across government and the Armed Forces.
RC Fornax is also developing AI-driven procurement tools through a unit called SME Procure, which targets the process by which the military sources equipment and services from smaller suppliers.
Reeves said he remained confident the business had the potential to deliver material value for shareholders, and indicated the company planned to announce a number of developments in the coming weeks.