RC Fornax (AIM:RCFX) has been selected for a £4 million UK government contract through the Public Sector Resourcing framework, a win the AIM-listed defence engineering consultancy says gives it approximately £8.4 million of secured, anticipated and selected revenue heading into the financial year ending 31 August 2027.
The award remains subject to completion of the client's standard procurement process and receipt of a formal purchase order.
Revenue for the year ended 31 August is expected to be approximately £5.2 million, up from £4.1 million in FY25, with monthly invoicing rising from around £180,000 to £600,000 as a newly integrated sales team delivered growth.
The anticipated operating loss widens to £1.6 million from £1.1 million, and performance is expected to come in marginally below current market expectations due to contract delays tied to uncertainty over UK defence strategy and capital allocation.
Cash stood at £0.85 million at year-end, broadly flat on £0.86 million a year earlier, and the board is evaluating a standby debt facility to support working capital rather than raising equity.
Finance Director Rob Shepherd has departed with immediate effect, replaced by Adam Cole as interim CFO on a fractional basis.
The board has also restructured the group into three divisions: core Output-based Engineering Services, a Recruitment and Specialist Talent business, and SME Procure, an investment-stage AI procurement platform to be funded internally against delivery milestones.
"We want to use the position RC Fornax has created to build businesses capable of scaling beyond the traditional consultancy model," said Chief Executive Paul Reeves.
News Intelligence what this means for the company
RC Fornax has secured a £4.0 million government contract through the Public Sector Resourcing framework, lifting FY27 revenue visibility to £8.4 million—but the company is guiding to FY26 revenue of £5.2 million (up 27% from £4.1 million in FY25) with an operating loss widening to £1.6 million, marginally below market expectations due to defence strategy uncertainty and contract delays. The win provides near-term revenue cover, yet the company remains loss-making with cash flat at £0.85 million and is exploring debt rather than equity to fund working capital.
The contract win extends visibility into FY27 and demonstrates framework access, but FY26 guidance miss and widening losses underscore execution risk in a defence consultancy still scaling. The shift to a three-division structure (including an unfunded AI procurement platform) and CFO departure add execution uncertainty, while the standby debt facility signals working capital pressure despite flat cash.
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