In a proactive move to up their defence in the fight against neo-terrorism and disruption, the European Union Police underwent a tender process for drone defence solutions with DroneShield (ASX: DRO) coming out on top to supply EU police forces with their DroneGun Tactical™ solution.
The framework agreement will see DroneShield supply DroneGun Tactical™ to police forces around Europe whilst sales, training and ongoing support will be managed by regional partner ForcePro BV.
“This is an exciting win in a number of ways. This is the first framework rollout of counterdrone equipment by any Government customer, anywhere in the world,” said DroneShield CEO Oleg Vornik.
“In addition to the substantial nature of this contract, we expect for this to set a standard for DroneGun Tactical™ procurement by other Government customers in the EU and globally, helping fasttrack additional acquisitions.”
“Importantly, this win of the competitive tender by DroneShield illustrates that security is at the forefront of governments globally as well as the fact that, after a brief interruption caused by the COVID crisis, global procurement processes have resumed.”
Although the framework agreement does not stipulate minimum order quantities, DroneShield anticipate the deal to have a material impact on periodic sales over an extended period as further attention is given to anti-drone security.
Already supplying security products to more than 100 countries, DroneShield has seen a notable rise in sales over the past 18 months which have included contracts with the Middle Eastern Ministry of Defence for $3.2m and the U.S Government for $400k.
Through CY19, DroneShield reported $3.6m in revenues, a 200% YoY increase, but has seen a downturn due to COVID-19 where the company reported $424k in sales for the quarter ending 31 March 2020.
Upon news of the European Union Police tender win, shares in DRO surged to a high of $0.19 in the first hour of trade, an 80% rise on their previous day’s close of $0.105.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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1 Comment
trader1337
Looks a bit ridiculous tbh
Reply