Soraya Narfeldt, CEO of RA International, said:
“The contract opportunities which the Company is now being invited to bid for are encouraging and I am pleased with the progress made by RA International since Admission to AIM. Whilst it has so far taken longer than anticipated to convert bids into contracts, we have a strong pipeline of projects across a range of sectors and a project management team capable of executing and delivering larger projects.”
RA International Group PLC (LON: RAI), a leading provider of services to remote locations in Africa and the Middle East, provides the following operational update on its activities.
RA International has made good progress on its strategic objectives since the Company was admitted to AIM earlier this year. The Directors have sought to grow the business by targeting larger scale contracts and entry to new territories and sectors. Through this approach the Company is delivering a change in revenue composition which shows an increased proportion from the Government and commercial sectors, as well as broader geographic exposure. The Company has also established a pipeline of opportunities in the mining and oil & gas sectors.
While the Company has increased revenue backlog, several projects which were expected to contribute to H2 2018 revenue have been delayed for reasons outside the Company’s control and will now take place in H1 2019. Consequently, RA’s revenues and profits for the year to 31 December 2018 are expected to be slightly behind market expectations.
During the second half of 2018 the Company secured a new client in URS Group, Inc., a subsidiary of AECOM (one of the world’s leading construction and civil engineering firms), to provide construction services in Somalia under a US$9.1m contract and won a five year, US$30m+ contract for the electrical works and construction of power infrastructure for the United Nations Support Office in Somalia. In addition, RA International was awarded a contract in a Central African country with a large publicly listed US company.
The Company has been invited to bid for opportunities which were not available to RA International as a private company. Given the size of the contracts and the counterparties involved, the Board has noted that the bid to contract process is taking longer.
