Pennant International order book contracts in H1

Training technology provider Pennant International said on Tuesday that its first-half order book had slumped year-on-year as a result of the Covid-19 pandemic.

Pennant said its contracted order book scheduled for delivery over the next three years stood at £25.0m at the end of the first half, down from 31 December's figure of £31.0m, as pipeline conversion during the period was suppressed by reduced customer procurement activity.

The AIM-listed group also said that the completion of the integrated review of security, defence, development and foreign policy being undertaken by the UK government had impacted guidance. Pennant also added it had been informed that "further substantial customer consideration" of its "major programme" will likely not take place until November 2021, meaning that any potential contract award might not take place until 2022.

"The group is working hard to accelerate pipeline conversion wherever possible and active negotiations are ongoing in relation to multiple new opportunities, including several potential sales of substantial software and services packages through the IPS division and significant bid activity within technical training division predominantly comprising software solutions for rail and aviation sector customers," said Pennant.

In terms of interim trading, Pennant said the trading was again predicted to be second-half weighted, with the firm anticipating to report revenues of approximately £7.4m in the first half, resulting in a loss before interest, taxation and amortisation of £1.0m. Net debt at the end of the period was broadly flat at £1.9m.

As of 1025 BST, Pennant shares had slumped 13.46% to 28.12p.