Cordel Group Share News (CRDL)

(Sharecast News) - Transport technology specialist Cordel Group said in an update on Tuesday that the $6.7m contract with Amtrak was progressing favourably.

The AIM-traded firm said that as it neared the culmination of the 18-month configuration and reporting phase, significant strides had been made.

It said it was confident in securing extensions to the existing scope of work, anticipating entering into the five-year software-as-a-service phase in due course.

Elsewhere in the US, Cordel said it had multiple proposals under consideration by several class one US railroads.

The proposals targeted core use cases aimed at enhancing inspection and maintenance processes, particularly in areas such as clearances, vegetation infringements, and overhead line obstructions.

Meanwhile, in the UK market, Cordel was continuing to strengthen its partnership with Angel Trains - a relationship focussed on introducing new business initiatives to drive more efficient infrastructure management for Network Rail through value-added data services.

From a marketing standpoint, Cordel said it was proactively nurturing its commercial pipeline.

It had scheduled relationship-building activities, including business development visits and roadshows across various regions such as the Middle East, Ireland, Australia, the Asia-Pacific and Germany throughout 2024.

Operationally, Cordel said it had optimised its delivery capability in Newcastle, Australia, ensuring readiness to onboard new projects as it experienced rapid growth and expanded its client base.

Overall, the board said it was satisfied with the significant progress achieved thus far and remained confident in Cordel's ability to meet its revenue expectations for the financial year.

"Our sales team around the world is working hard towards our 30 June objectives, while our technology team continues to deliver high quality, on-time results to customers," said chief executive officer John Davis.

"New product development continues at pace, with a particular focus on automation and refinement."

Chairman Ian Buddery added that the board was "very confident" in continuing growth for current and future years, and was also comfortable with Cordel's cash position.

"We have world-leading AI technology and a unique approach to automated delivery which underpins our ability to scale the business while maintaining a minimal cost base.

"Everyone at Cordel is focused on delivering long-term value for our shareholders."

At 1156 BST, shares in Cordel Group were up 2.86% at 3.6p.

Reporting by Josh White for Sharecast.com.