Last checked at 18 Dec 2019 07:00
18 December 2019
This announcement contains inside information
RA INTERNATIONAL GROUP PLC
("RA International" or the "Company" and, together with its subsidiaries, the "Group")
Contract win and trading update
RA International Group PLC (AIM: RAI), a leading provider of services to remote locations in Africa and the Middle East, has been awarded the second phase of a contract with Cherokee Nation Mechanical, LLC, working on behalf of the U.S. Department of State, to provide construction services at a U.S. Embassy in East Africa ("US Embassy"). The value of phase 2 is USD 9.1 million, bringing the total contract value to USD 10.9 million.
Under the terms of the contract, RA International will provide a variety of upgrades and refurbishment works at the US Embassy. Phase 1 of the contract has already commenced and is expected to be materially complete by 31 December 2019, with phase 2 scheduled for completion by the end of 2020.
In the second half of 2019 the Group has successfully delivered contracts across all three service channels and further progress has been made in diversifying the Group's operations geographically. As a result of the Company's increased activity, the Board expects to be slightly ahead of full year turnover expectations in 2019, while profitability is projected to be broadly in line with expectations.
The Board is also pleased to confirm that the contract backlog remains strong at USD 148 million, with approximately USD 55 million of this backlog contracted to be delivered in FY 20.
Soraya Narfeldt, CEO of RA International, commented: "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 U.S. Department of State and the Bureau of Overseas Buildings Operations."
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Enquiries:
RA International Group PLC Soraya Narfeldt, Chief Executive Officer Lars Narfeldt, Chief Operating Officer Andrew Bolter, Chief Financial Officer
| Via Hudson Sandler |
Cenkos Securities PLC (Nominated Adviser and Broker) Derrick Lee Peter Lynch | +44 (0)131 220 6939 |
Hudson Sandler LLP (Financial PR & IR) Daniel de Belder Bertie Berger |
+44 (0)207 796 4133 rainternational@hudsonsandler.com |
About RA International
RA International is a leading provider of services in remote locations across Africa and the Middle East. It specialises in three service channels: construction; integrated facilities management; and supply chain. It has a strong and loyal customer base, largely comprising UN agencies, western governments and global corporations.
The Group provides comprehensive, flexible, mission critical support to its clients enabling them to focus on the delivery of their respective businesses and services. RA International's focus on integrity and values alongside on-going investment in people, locations and operations has over time created a reliable and trusted brand within its sector.