The market may have dropped lower today, but that hasn't stopped the Citadel Group Ltd (ASX: CGL) share price from charging higher.
In afternoon trade the managed technology solutions provider's shares are up 4% to $4.98.
Why is the Citadel share price racing higher?
Investors have been buying the company's shares on Monday after it provided an update on recent contract wins.
This afternoon Citadel announced that the Department of Defence has elected to exercise both its extension options. This means its will be taking the company's support contract through to July 2021.
In addition to this, Citadel advised that it expects the Department of Defence to issue a new tender or similar process for the longer-term sustainment contract. This is a process in which Citadel intends to participate.
Citadel's CEO, Mark McConnell, said: "We are very pleased to be awarded the two contract extensions by the Department of Defence, reflecting the quality work that Citadel has delivered to the Department over many years. This news comes on the back of other recent material contract extensions, including the 10- year contract extension for Enterprise Pathology Software for Queensland Health announced on 13 December 2019."
Citadel Health.
The company also revealed that its Citadel Health business has secured a new contract.
Following the announcement at its AGM of Citadel's preferred supplier status to manage and support the Melbourne Genomics Alliance systems (Genovic), Citadel has now moved to a full contract valued at approximately $500,000 for the initial stages of work.
There are options to extend to contract for a further 3 years following further client funding approval.
Genovic is an alliance of 10 leading healthcare and research organisations that are committed to improving patient outcomes via the rapid identification of cancer and disease symptoms.
Citadel Health will initially be responsible for managing the Genovic platform, help desk, application and integration testing, change management and client onboarding.
Also rising strongly on Monday despite the market weakness were the shares of Medical Developments International Ltd (ASX: MVP) and Pro Medicus Limited (ASX: PME). They are up 7.5% and 4.5%, respectively, in late trade on the back of no news.
