24th Sep 2019 11:05
(Alliance News) - Pennant International PLC said Tuesday it sank to a loss on lower revenue amid contract timing challenges, but the order book has expanded.
For the six months ended June, the technical training equipment firm sank to a pretax loss of GBP1.8 million from a profit of GBP2.0 million the year prior. This was after revenue halved to GBP7.3 million from GBP13.2 million the year before.
The order book over the next three years was described as "robust" at GBP36.1 million, up 16% from GBP31 million the year prior.
Pennant Chair Simon Moore said first half trading had been "in line" with expectations.
"The first half saw the group focused on building a suite of generic training aids and, with this work being recognised as work-in-progress at the end of the period," Moore added. Administrative costs jumped 44% to GBP3.6 million from GBP2.5 million the year prior.
Pennant did not propose an interim dividend, unchanged from the year prior.
"Notwithstanding a number of customer-driven timing challenges on specific projects, the company's strategy is progressing to plan with two acquisitions already completed so far this year, and with the prior investment in products, people and facilities positioning the group well to exploit its considerable pipeline which includes over GBP30 million of single-source opportunities", Moore continued.
Shares in Pennant were 2.3% lower at 65.45 pence in London on Tuesday.
By Ahren Lester; [email protected]
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