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(Alliance News) - RA International Group PLC said Monday it secured a new USD9 million delayed government contract as it reported "encouraging" trading in 2019 to date.
The three-year deal will see Africa- and Middle East-focused RA deliver construction and facilities management services to an unnamed government. The contract was originally expected to be signed in the first half of 2018. It is now expected to start in the second half of 2019.
In 2018, RA generated USD10.0 million pretax profit on revenue of USD54.8 million.
RA builds and maintains camps in remote areas for staff working for the United Nations, oil & gas firms and other organisations across the globe.
For 2019 to date, RA described trading as being "encouraging", with more progress made in line with its strategy of "bidding for larger contracts across three service channels, diversifying its geographical presence, and broadening its customer base".
During the first six months of 2019, RA secured a "number" of contracts with its revenue backlog now standing at over USD150 million. The revenue expected to be delivered from this backlog in the current year is already enough to meet its revenue expectations for 2019, it said.
"As last year, we expect financial performance to be weighted in the second half of the year, but we are confident in delivering on market expectations for 2019," RA Chief Executive Officer Soraya Narfeldt said. "The outlook for RA International is positive; we have been shortlisted to tender for several major contracts and we have the platform from which to capitalise on the opportunities available to us."
Shares in RA were 1.6% higher at 48.28 pence in London on Monday. The company will release its interim results on September 10.
