Early gains in low emission bus manufacturer Optare (OPE:AIM) close in on triple digits as it secures a contract win from Stagecoach (SGC) worth more than its market capitalisation.
The stock is up 97% in early trade to around 0.3p on excitement around the contract, which will see Optare receive £7.3 million to build Euro 6 Optare Solo buses by the end of 2016.
‘We are delighted to be supplying more Optare vehicles to Stagecoach,’ says chief executive Enrico Vassallo. ‘In line with the Stagecoach greener, smarter, travel strategy these Solos will be the first Euro vehicles Optare have supplied to Stagecoach.’
The buses are single-decker, lightweight vehicles with 37 seats, running off a diesel engine and with a hybrid and full electronic drive option.
Stagecoach’s contract award is timely, as Optare lost £2.6 million in the six months to end-September, and £4.1 million in the 12 months prior to that.
