Shares in troubled defence contractor Chemring leapt today after the company revealed it has signed an Australian contract for 18 million Australian dollars (£10.6m).
Shares climbed by over five per cent on the back of the announcement.
Under the terms of the deal FTSE 250-listed Chemring will supply the Australian Department of Defence with electronic surveillance systems, the company said.
Michael Flowers, group chief executive of Chemring, said:
Resolve 3 represents the latest in man-portable electronic surveillance capability and I am delighted that Chemring Australia has won this contract.
This is the largest award that the Group has received for the Resolve system, growing Resolve’s user-base to nine countries and builds on Chemring’s position as a market leader in electronic warfare.
The Hampshire-based company, which also makes fighter jet ejector seats and counter heat-seeking missile flares, warned on its full-year profits in June, with a Middle East contract – delayed by the fall in oil price – still causing problems.
Chemring has struggled for several years as Western governments cut their military budgets following the withdrawal of troops from Iraq and Afghanistan.