TP Group secures £5 million Defence contract
announced on Thursday that it secured a contract with the Ministry of Defence worth around £5 million.
The AIM-listed defence contractor said the 2-year contract included an option to extend for a further 6 months, worth an additional £1 million.
Under the contract, TP Group will provide multi-disciplinary customer support to the Army HQ's Land Environment Tactical Communication and Information Services & Systems (LE TacCIS) Programme.
The programme, jointly funded by the UK’s Joint Forces Command (JFC) and by Army HQ, is worth an estimated £3.2 billion.
The contract will involve technical, transformation and programme management activities delivered by TP Group's Consulting and Programme Services business.
TP Group shares were up 1.19% at 6.375p during Thursday trading.
Phil Cartmell, Chief Executive Officer of TP Group, commented: "The renewal of this contract is an excellent return on all the hard work and technical support provided by the TP Group team over the last 3 years.”
He added: “Army HQ have become a major customer for the Group and this work has been at the centre of significant growth in our consulting business."
"We are very pleased to work with the Army in building a technically sophisticated communications and information service that supports their operations from personnel in the field to decision-making at the command centre."
Last month it secured a £1.7 million contract to provide ruggedized computer servers and displays for a European defence force.
TP Group’s results for the 2019 year are set to be released next month on 31 March 2020, which it said in a trading update would be ‘in line with market expectations’.
The company’s broker Cenkos, estimates TP Group’s 2019 revenues to be circa £55 million, according to a research note.
The AIM-listed firm is backed by M&G Investment Management, who hold a 19.3% stake as well as Legal and General, who hold a 13.9% stake.
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