Petards Share News (PEG)

(Sharecast News) - Petards Group announced on Friday that it has secured a three-year contract extension from the Ministry of Defence worth £0.65m for continued support of Royal Air Force communication infrastructure.

The AIM-traded firm said the agreement, awarded to its Petards Joyce-Loebl subsidiary, extended an existing support contract covering core maintenance services across RAF stations in the UK and overseas.

It said the extension included scope for additional tasking and repair work, for which no committed value had been set.

Petards said it expected the activities could raise the total value of the contract to more than £1m over its duration.

Support work under the new agreement would begin this month and run until November 2028.

Chairman Raschid Abdullah welcomed the award, saying: "We are absolutely delighted that the MoD has awarded this contract extension to Petards and we look forward to continuing to work in partnership with its team to deliver this contract."

He added that government contracts played a critical role in sustaining specialist UK defence capabilities.

"Government contracts such as this are important in supporting SMEs such as Petards, supporting UK based jobs and the retention of valuable specialist skills required for the UK to maintain independent capabilities in key industry sectors such as defence and helping support the local economy."

Abdullah said the extension reinforced the group's long relationship with the RAF, and added to the order book for its defence services.

At 0842 GMT, shares in Petards Group were up 4.33% at 7.9p.

Reporting by Josh White for Sharecast.com.