2nd May 2019 11:52
LONDON (Alliance News) - Shares in Pennant International Group PLC fell Thursday morning as the company warned on delay to a contract worth up to GBP30 million.
Shares in the company were down 15% at 98.92 pence each.
The company, which provides training and support solutions in the defence and regulated civilian sectors, said the contract is contingent on the prospective customer's single-source 'upstream' contract becoming effective, which may not occur until the second half of 2020.
The contract was earlier expected in the latter part of 2018.
Pennant has therefore decided to start a cost-reduction exercise. It is currently incurring GBP90,000 per month in costs related to the potential contract award, which would not otherwise have been incurred.
"The board does not expect the potential delay in the contract award to have a material impact on market expectations for the current year and, having regard to the group's pipeline of active opportunities, remains confident about the company's prospects for the future," the UK listed company said.
It anticipates revenue of around GBP22 million for 2019, after revenue of GBP21.1 million in 2018.
Related Shares:
Pennant International