One of Britain’s top defence-tech companies has secured its largest single contract to date, supplying computer plug-in cards to a major US defence and aerospace contractor.
Aim-listed Concurrent Technologies said the deal, which is worth $4.46m (£3.51m), was for a large number of “standard products” from its portfolio.
The products will be put to use in a major US Department of Defence programme to upgrade specific sensing equipment used in aircraft across multiple fleets.
Miles Adcock, CEO of Concurrent Technologies, said: “We had the right products available at the right time to satisfy the needs of our customer, enabling us to participate in this important upgrading of capability for the US Air Force…
“Not only is it our largest ever contract, it’s also our largest ever design-win. With an anticipated lifetime value in excess of $40m (£31.5m), this is a significant opportunity for the company with sizeable purchase orders expected for the next seven to 10 years.”
The deal is the latest piece of good news from the company. It follows a strong set of results in May, which caused its share price to rally.
Investors also celebrated today’s news. The stock jumped five per cent in early deals.
Earlier this month the tech group acquired Philips Aerospace, which makes custom aviation systems
Like many in its sector, the company has benefited from rising geopolitical tensions, which have caused Western countries to reevaluate their defence spending.
In April, the UK government announced it would boost UK defence spending to 2.5 per cent of GDP, a pledge which Labour has said it will match albeit slightly more slowly.
Meanwhile countries like Germany, which since the second world war has traditionally kept investment into defence low, could up its spending in the sector to 3.5 per cent of GDP.