27th Sep 2016 08:59
LONDON (Alliance News) - Pennant International Group PLC on Tuesday said it swung to a small profit in the six months to the end of June and remains confident on its outlook, having secured a slew of new contracts in the first half.
Pennant, which provides logistics services to defence, rail, aerospace and naval clients, said it made a pretax profit of GBP10,582 in the half-year to June 30, compared to a GBP750,000 loss a year before.
Revenue increased to GBP6.6 million from GBP5.7 million, as Pennant secured two major contracts in the Middle East and a new deal with US defence contractor Lockheed Martin Corp.
The company said its order book at the end of June was GBP46.0 million, with GBP36.0 million of this due for delivery in 2017, 2018 and 2019.
Pennant confirmed it will not pay an interim dividend, having paid 1.00 pence per share a year before. In June, the company had said it would suspend dividend payments in order to conserve cash to meet working capital requirements on the new contracts it has won.
"The board remains confident that trading will be in line with current market expectations for the year ending 31 December 2016. Notwithstanding the current global economic outlook, to date, we have seen very little noticeable impact on the group's trading from the Brexit vote," said Chairman Simon Moore, who took up the role in May.
Shares in Pennant were up 4.5% at 64.25 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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