Pennant International reverses to FY profit and suspends final dividend

Shares in Pennant International are up more than 5% after it reversed from loss to full-year profit, roughly doubled its revenue and suspended its final dividend.

Directors had decided to suspend the final dividend to retain cash for working capital and investment.

They noted the much improved trading performance and outlook, positive cash generation and nil net borrowings.

Pre-tax profit was £1.9m, from a loss of £2.4m. Revenue was £17.2m, from £9.9m.

"The Board is confident that it can continue to increase revenues through organic growth but it will also consider complementary strategic acquisitions which can both increase the depth and range of the Group's offering and enhance underlying earnings," said chair Simon Moore.

"We have enjoyed a good start to 2017 and anticipate a healthy first half outcome with further good progress being achieved for the year as a whole," added Moore.

"Prospects remain very positive, taking into account the contracted order book valued at more than £38m which underpins the forward visibility of revenues well into 2019."

At 14:52 GMT, shares in AIM-quoted Pennant were up 5.49% to 86.5p each.