Construction, facilities management and supply chain services provider, RA International Group PLC (AIM:RAI) saw its shares spike on Thursday, as the company announced it had been awarded a ‘significant’ contract.
The contract was signed with an undisclosed, ‘large’, ‘global’ construction firm with a focus on the oil and gas sector. It spans over a two year period and is expected to be worth a minimum of US$60 million dollars over that time frame.
RA International stated that under the agreed terms, it would be fulfilling its integrated facilities management capacity in Southern Africa. It added that the contract’s nature means that activity will escalate as time passes, with the provision of the company’s services expected to commence within a year of the contract being awarded.
The company also said that today’s contract award represents a ‘significant’ contribution to its order book, now standing at US$188 million.
Commenting on the news, company CEO Soraya Narfeldt, stated:
“This is an important contract win for RA International that underlines the strengths of our business and our growing reputation for managing and delivering large, complex projects for commercial clients in the energy sector.”
“It is testament to our capability to provide a full service offering to our clients’ personnel, to the value of our long-term, strategic approach to planning and to our focus on delivering resourceful solutions for clients notwithstanding COVID-19 and project specific challenges.”
Following the contract announcement, RA International shares rallied by a healthy 23.92%, or 11.05p, to 57.25p a share 13/08/20 12:00 BST. This rally saw the company take the top spot as Thursday’s biggest riser. It also sees the company beat its previous year-to-date high, which was set on Wednesday when the company hit 46.2p a share.
The Group’s p/e ratio is currently 8.15, its dividend yield stands at 2.17%.
