RC Fornax has won a second UK government contract worth around £350,000 and said it did not plan to raise equity to fund its business.
The news will be more than welcome for RC Fornax investors who have watched shares ebb away in recent months. Shares rose 5% in early trade.
The AIM-listed defence engineering consultancy said the contract, secured through the government’s Public Sector Resourcing framework, would see it provide project management support to a government client for an initial six months, with a possible six-month extension that would take its total value to between £650,000 and £700,000.
The award follows a £4m selection through the same framework announced recently, and takes the company’s revenue visibility for its 2027 financial year to more than £9.1m.
Separately, RC Fornax updated on a review of its funding options. It said it was not considering an equity fundraising to avoid diluting shareholders, and did not expect its core business to need additional funding as it moves towards generating cash each month, though it was still weighing a working capital debt facility.
Avoiding a placing is crucial for RC Fornax, which would heavily dilute investors if it raised anything meaningful at this level.