Petards Group plc (LON:PEG) shares jumped 6% on Monday as the firm announced that the Ministry of Defence (MoD) has exercised its option to extend an existing contract from the Air Platform Systems Platform Protection team for two more years.
The AIM-listed company said the contract extension is expected to be worth in excess of £1.1mln over the two year period to 31 December 2021, in addition to the original contract which was worth in excess of £1.6mln for the three year period to 31 December 2019.
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The software developer announced that the extended contract is for the support of ALE 47 and M147 Threat Adaptive Countermeasures Dispensing Systems which are fitted to Lynx, Puma, Chinook, Merlin, and C130J aircraft platforms.
Under the terms of the contract, Petards will continue to perform Post Design services, with additional engineering, repair, refurbishment and manufacturing which are expected to significantly enhance the value of the agreement.
Raschid Abdullah, Petard's chairman, said: “We consider it a real vote of confidence that the Ministry of Defence has chosen to exercise the option on the contract at this early stage.”
In mid-morning trading, Petard’s shares were up 6.1% to 26p.