The Fleetwood Corporation Limited (ASX: FWD) share price has started the day strongly in the green.
Shares in the building solutions company are bidding higher on the back of an announcement earlier today.
Let’s take a look at why investors are pushing the Fleetwood share price higher.
Fleetwood share price soars on contract news
Shares in Fleetwood have been boosted following a major announcement earlier today.
The company revealed it has secured a major contract for the new 1000-bed quarantine facility, the Centre for National Resilience, in Melbourne.
According to the release, Fleetwood will utilise its manufacturing facilities to deliver 500 beds by the end of 2021.
The company highlighted that the contract is expected to result in revenue of approximately $32 million for FY22.
The Centre for National Resilience is a purpose-built quarantine facility, built and owned by the federal government.
The facility will be operated by the Victorian government for the duration of the COVID-19 pandemic.
Fleetwood’s Chief Executive Officer Bruce Nicholson noted:
This is an outstanding outcome for the company and highlights the strengths of using innovative offsite manufacturing to deliver highly effective and efficient products with strong sustainability credentials.
More on Fleetwood
Fleetwood is a leader in the modular construction industry and is a key supplier to the education, health, custodial, mining and affordable housing sectors.
Shares in the construction company took a blow recently after the company provided an operations update.
Fleetwood noted a slow and cautious recovery in the building industry following COVID-19 lockdowns in New South Wales and Victoria.
As a result of the current uncertainty, the company noted that clients have been very conservative and slow in their decision making.
In addition, Fleetwood noted that ongoing border closures and uncertainty around domestic travel have impacted its recreational vehicles (RV) business.
The company noted that foot traffic has also declined across its retail channels, while online and click and collect channels also showed signs of slowing.
Fleetwood had recently addressed the direct impact that various COVID-19 restrictions were having on its operations in its full-year report.
Snapshot of the ANZ share price
Shares in Fleetwood have soared more than 12% since the start of 2021.
However, the company’s share price is still well off its 52-week highs from earlier this year.
At the time of writing, shares in Fleetwood are trading more than 2.64% higher for the day at $2.33.