(Alliance News) - Shares rose in RA International Group PLC on Wednesday as it was awarded the second phase of a contract with Cherokee Nation Mechanical LLC for the US Department of State.
In addition, the Africa and Middle East-focused construction and support services provider said that due to increased activity in the second half of 2019, it expects revenue for 2019 to be ahead of expectations.
Shares in RA International - which is headquartered in Dubai - were 11% higher at 42.0 pence on Wednesday in London.
RA International said it was awarded the second contract phase alongside Cherokee Nation, to provide several upgrades and refurbishment works at a US embassy in East Africa.
The second phase has a value of USD9.1 million, bringing the total contract value to USD10.9 million.
Cherokee Nation Mechanical is part of US conglomerate Cherokee Nation Businesses LLC, and provides mechanical and plumbing services.
Phase one of the contract is in progress and is due to be completed by December 31, while phase two is scheduled for completion by the end of 2020.
RA International said that during the second half, it has delivered contracts across all three of its services channels, and made further progress in diversifying its geographical operations.
As a result, revenue for 2019 is expected to be ahead of expectations, while profitability remains in line.
To date, RA International said its contract backlog stood at USD148 million, of which USD55 million is contracted to be delivered in 2020.
"This contract is testament to the significant work we do in remote locations with our existing customer base who put their trust in us. Cherokee have been fantastic to work with and we are delighted with the results of our work to date and look forward to commencing phase 2 works and continuing to support the needs of the US Department of State and the Bureau of Overseas Buildings Operations," said Chief Executive Officer Soraya Narfeldt.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Ra Internation. (RAI)