Pennant International Profit Falls On Higher Costs, 2018 Starts Well

12th Mar 2018 10:06

LONDON (Alliance News) - Technical training firm Pennant International Group PLC said Monday profit in 2017 fell due to rise in administrative costs and the company has made an encouraging start in the new year.

In 2017, the company's pretax profit fell to GBP1.8 million from GBP1.9 million the year prior. This was despite revenue growing to GBP18.1 million from GBP17.2 million the year before.

Profit performance was hurt by administrative costs rising to GBP5.4 million from GBP5.1 million the year prior. This was partly driven by GBP125,000 in exceptional costs associated with the termination of the contract of Pennant's former chief executive.

In late February 2017, former Chief Executive Officer Chris Snook stepped down and was replaced by Pennant Chief Financial Officer Phil Walker.

"2017 has been a year of dynamic and transformational change for the group, led by new management, engaged staff and supportive customers," Pennant Chairman Simon Moore said. "The management team, led by Phil Walker, is building strong, and sustainable new partnerships and further strengthening existing relationships with customers across the globe, including Australia, South East Asia, the Middle East, Canada and the United States."

AIM-listed Pennant also emphasised it had managed to mitigate the risk from challenges in a major contract which it announced at its interim results in September could impact "trading negatively" for the full year.

"Prospects for the global economy in 2018 remain uncertain, and there are budgetary pressures in defence markets," Moore added. "However, Pennant is nimble, agile and responsive and so is well placed to maximise opportunities as the economic situation develops."

Moore explained it was "experiencing an encouraging start" to the new year. Results for 2018 were expected to be weighted towards the first half of the year.

"Prospects remain positive", Moore added. "The contracted order book, valued at more than GBP34 million, underpins good forward visibility of revenues well into 2020. In addition, the pipeline of active bids and other opportunities remains healthy."

At the end of 2016, the three-year order book stood at GBP38 million.

In a separate announcement, Pennant appointed company insider Gary Barnes as its new finance director as well as former Royal Air Force Air Vice Marshall John Ponsonby as non-executive director from April 1. Ponsonby recently served as managing director at Leonardo Helicopters UK, a division of Leonardo MW Ltd.

Shares in Pennant were 4.2% lower at 80.00 pence on Monday.

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