RC Fornax Secures New Defence Orders as Revenue Visibility Strengthens for 2026

RC Fornax PLC, the veteran-led defence consultancy listed on the Alternative Investment Market, experienced a notable share price increase of 16 per cent to 8.4 pence during early trading on Tuesday. The movement followed the company’s announcement of £1.4 million in new orders and purchase order extensions secured throughout March, which elevated its confirmed revenue visibility for the current financial year to exceed £5.1 million.

Cavendish, serving as the company’s corporate broker, has maintained its buy recommendation alongside a 50 pence target price on the stock. The broker asserts that the recent order momentum renders the previous share price weakness increasingly unjustifiable, particularly given RC Fornax’s exposure to a defence sector where budgetary allocations continue to expand despite broader economic headwinds.

David Buxton, analyst at Cavendish, noted that the March order intake comprised three new purchase orders, two additional public sector opportunities and six extensions to existing contractual arrangements. This performance extended a positive trajectory that had already seen RC Fornax secure more purchase orders in the current quarter than throughout the entirety of its 2025 financial year.

The broker emphasised that current revenue visibility of £5.1 million compares favourably with its full-year revenue forecast of £5.8 million, with four months of the financial year remaining. Cavendish has left its estimates unchanged following the update.

The brokerage contends that the shares are trading at an unjustified discount relative to the company’s improving commercial momentum, characterising the current valuation as an attractive entry point for investors. Cavendish’s investment thesis centres on RC Fornax’s market positioning as a provider of outcome-based engineering and capability support to prime defence contractors during a period when constrained budgets are compelling clients to seek more cost-effective solutions. This dynamic, according to the broker, aligns directly with the company’s operational strengths.

Looking towards future financial periods, Cavendish highlighted that the increasing proportion of recurring, multi-year contracts within RC Fornax’s order book provides the business with a more robust foundation from which to accelerate revenue growth during its 2027 financial year. The broker has forecast sales of £8.5 million for that period.