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(Sharecast News) - RC Fornax reported a sharp increase in new orders at the start of its financial year on Tuesday, signalling a material upswing in demand following the UK government's Strategic Defence Review.
The AIM-traded engineering consultancy, which provides outcome-based solutions for defence platforms, secured around 2.5m of total orders in the first three months ended 30 November, representing more than 70% year-on-year growth.
New orders alone totalled approximately 2.2m, up more than 180% on the same period last year and over 1,200% higher than the previous quarter, marking the strongest quarter in the company's history.
The group said it had secured work from three new clients while continuing to win extensions and follow-on engagements from its existing customer base.
Management said it expected the surge in new orders to translate into revenue over the remainder of 2026, with further extensions anticipated as activity ramps up.
RC Fornax said the uplift reflected increased customer engagement following the defence review and operational improvements implemented over the past five months, including strengthened governance, risk management and delivery structures.
Chief executive Paul Reeves said the reshaped defence landscape was driving customer priorities and opening larger opportunities.
"The first three months of 2026 have delivered the strongest new order intake in RC Fornax's history, with approximately 2.2m in new work secured during the period," he said.
He added that the Strategic Defence Review was "now translating into a clear surge in demand, deeper engagement and a rapidly strengthening pipeline."
Reeves highlighted the benefits of the company's participation in seven procurement frameworks, which he said was unlocking "increasingly material opportunities."
He noted that confidentiality requirements within the sector limited public disclosure but argued the early performance was "a clear indicator of the momentum building across the business."
Following a recent fundraise, the company plans to accelerate development of its Procure X and Smart Suite platforms, which it believes will transform defence capability sourcing.
The board said the strong start provided improved visibility on revenue for the rest of the year and positioned RC Fornax for long-term sustainable growth.
At 1525 GMT, shares in RC Fornax were up 20.93% at 7.44p.
Reporting by Josh White for Sharecast.com.