17th Jul 2020 10:12
(Alliance News) - Shares in Pennant International Group PLC jumped on Friday after the company announced the winning of a new contract with an initial order value of GBP1.5 million.
Shares in the Cheltenham-based training and support services provider were 24% higher at 44.80 pence on Friday in London.
The award follows Pennant in February receiving a statement of intent for the purchase of training aids worth up to GBP5 million from a unnamed Middle East-based customer.
The majority of revenue on the order is expected to be recognised in 2021 as the training aids are completed and delivered.
The new contract award takes Pennant's contracted order book for 2021 to just under GBP13.5 million. Looking ahead, the group expects the customer to make further purchases, and anticipates another order to be placed either later in 2020 or early 2021.
"We are delighted to have secured this new contract, which is testament to our close and long-standing partnership with the customer. It also demonstrates the group's continued ability to convert new opportunities and win new international business which is particularly important in the current economic climate," said Chief Executive Officer Phil Walker.
Pennant International will publish a trading update on August 13.
By Dayo Laniyan; [email protected]
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