Corac Group: Name Change To TP Group And Export Win
Edison | May 26, 2015 05:20AM ET
Name change to TP Group and export win
Corac's (LONDON:CRAU) confirmation that shareholders have approved the name change to TP Group is a reflection on the changing nature of the group to a specialist engineering business. It was apt, therefore, that it announced earlier in the same week that it had won a £3.4m export contract from a South-East Asia shipbuilder. This provides further evidence that the group’s submarine atmosphere control products are a success both in the UK and in export markets. With the order due for delivery from 2016 to 2018, visibility in the Aerospace & Defence division is further enhanced and it supports our thesis that such long-term programmes provide a solid base to expand its activities in defence and beyond.
Export order in South-East Asia
On 19 May the group announced that it had won a £3.4m export order with a major South-East Asia shipbuilder for two of its submarine atmosphere control units. The units will be built in the group’s Portsmouth, UK, facility and will be delivered from 2016-18. This order follows on from an agreement for a programme of work first announced in January 2014, and highlights the group’s ability to cultivate long-term partnerships with prospective customers and use its leading position in this market to win substantial contracts. While the contract does not alter our short-term forecasts with the majority of revenue occurring post-2016, it provides further order cover and visibility in the group’s Aerospace & Defence segment.
Further defence opportunities remain
With submarine markets a global area of investment, Corac is well positioned to win further orders in the UK, where it is a clear leader in submarine atmosphere control, but also for export, where it dominates the addressable market outside the US. With programmes lasting many years and follow-on orders such as this demonstrating the leading position of Corac’s products, we believe it is in a good position to capture a disproportionate share of this growing market.
To Read the Entire Report Please Click on the pdf File Below
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.