Pennant 'on track' to delivery on expectations

Integrated training and support solutions provider Pennant International Group updated the market on its trading on Monday, ahead of the announcement of its interim results for the six months to 30 June, which were scheduled to be released on 11 September.

The AIM-traded group said it remained 'on track' to deliver in line with market expectations for the year as a whole.

“A number of major new contracts awarded during 2016, including a landmark contract with new customer, The Lockheed Martin Corporation and two substantial contracts with Middle East customers, are currently being delivered against scheduled milestones with payments being received,” the board explained.

“The group announced last month a £2m extension to its contract with Lockheed Martin, which will not only help to underpin current market revenue forecasts, but will make a valuable contribution to 2018 revenues, whilst in March of this year a contract amendment with the Canadian Department of National Defence added a further CAD 3.8m to the contract value for the remaining contract term to September 2018.”

Pennant also announced additional contract wins and extensions during the half year on Monday, valued in aggregate at more than £0.6m.

“These include a new contract with Kawasaki Heavy Industries in Japan, a contract amendment for Network Rail's Electrical Control Room software simulator, a renewed contract with HMRC for support and maintenance, an Omega PS software sale to Fleetway and the sale of Genskills Trainers to new customers in Abu Dhabi, China, Russia and Singapore.”

The board said that notwithstanding current economic uncertainty surrounding the recent formal commencement of the UK's exit from the European Union, the group had not yet detected any loss of confidence from its global customer base.

“With an order book of £42m at the half year end - including £33m for delivery in 2018, 2019 and 2020 - a healthy balance sheet and a world class customer base, supported by a strong reputation and track record in its markets, the board is confident about the group's future prospects.”