Corac signs French submarine contract

Shares of engineering technology company Corac surged on Tuesday after it confirmed its Atmosphere Control International (ACI) unit has signed a multi-million pound contract with French naval shipbuilder and submarine supplier DCNS.

Corac said its unit has finalised contractual discussions with DCNS for the supply of oxygen production plants for the second and third boats in the Barracuda class programme.

"This multi-million pound, five year contract within an existing framework agreement gives ACI strong visibility of build and maintenance revenues," said Corac in a company statement.

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"The Barracuda programme has a further three boats on the horizon with options within the framework agreement for ACI to supply systems for these over the next ten years," it added.

Corac Chairman Phil Cartmell commented: "This strengthens the group order book, providing good visibility for longer term revenues."

CJ