17th Mar 2025 10:47
(Alliance News) - RC Fornax PLC said on Monday that it expects to meet market expectations for the full-year, following an AIM float which it labelled a "seminal moment".
The defence solutions provider said it expects to meet full-year market expectations for the year ending August 31.
It expects to report revenue of GBP3.8 million for the six months to February 28, a rise of 30% compared to the half-year to the end of August 2024. It would be an outcome in line with board expectations. It predicts gross profit of GBP1.1 million.
"The current pipeline underpins the board's confidence in meeting current market expectations for the year ended 31 August 2025," it added.
Chief Executive Officer Paul Reeves said: "I'm delighted with the performance of the company and our team during this period, during which we met our targets while completing an IPO that marked a seminal moment in RC Fornax's development. We are now fully focused on building our business for the benefit of all our stakeholders. With that in mind, I welcome the UK government's recent commitment to bolster defence spending. This can only be a positive for the UK's security and armed forces, which RC Fornax is dedicated to serving."
RC said its half-year revenue was generated from contracts with six firms, four being in the "top 10 supplier list" to the UK Ministry of Defence. One of them is a UK offering "of an international group".
RC added: "During the period, RC Fornax worked in an array of environments within the aerospace and defence industry, contributing to ongoing programmes within land, air and maritime domains. One notable success was the guiding a key client to transition from traditional time and materials solutions to outcome-based services, a model the company is replicating across several existing and new customers. RC Fornax expects this model to continue to positively impact margins.
"RC Fornax, which is supported by its pool of skilled associates, continues to see strong demand for defence engineering services, as the drivers for increased investment in defence have amplified during the year, especially in relation to the ongoing conflicts in Ukraine and the Middle East."
RC Fornax last month said it raised GBP6.2 million, as planned, in its initial public offering. Of this, 15.8 million new shares were placed at 32.50 pence, raising GBP5.2 million for the company, which it plans to use to develop artificial intelligence products. A further 3.1 million existing shares were sold at the same price to raise GBP1.0 million for existing shareholders.
Shares traded down 1.2% at 33.02p each in London on Monday morning, 1.6% higher than its 32.5p initial public offering price. It floated in February.
By Eric Cunha, Alliance News news editor
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