MTI Wireless Edge Wins £0.8m Defence Contract
Why we think this is good
This contract win for a test range shelter is a positive development for MTI Wireless Edge, as it demonstrates the company's ability to secure repeat business from a returning customer. The contract value, while relatively small compared to the company's market cap, provides some revenue visibility and indicates the company's competence in delivering similar projects. The lack of details around margins and earnings impact prevents a more enthusiastic assessment, but overall this appears to be a solid contract that should contribute positively to the company's performance.
Key Points
- MTI Wireless Edge's subsidiary, P.S.K Wind Technologies Ltd., has secured a £0.8m contract for the construction and delivery of a test range shelter for a defence application
- The contract will be delivered before the end of 2025
- The CEO commented that this win from a returning customer demonstrates the company's ability to deliver high-quality products in a short timeframe
- The subsidiary PSK is poised to return to growth in 2025 with this project, the current order backlog, and the ongoing pipeline
Summary
MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on communication and radio frequency solutions, has secured a contract worth approximately £0.8 million for the construction and delivery of a test range shelter for a defence application. The contract will be delivered before the end of 2025. The CEO, Moni Borovitz, commented that this win from a returning customer demonstrates the company's ability to deliver high-quality products in a short timeframe. With this project, the current order backlog, and the ongoing pipeline, the subsidiary PSK is poised to return to growth in 2025. According to the latest broker targets, Shore Capital has maintained its 'House Stock' recommendation on the shares with no price target.