11th Dec 2015 10:10
LONDON (Alliance News) - Logistics services provider Pennant International Group PLC on Friday saw its shares drop after it said it has secured only one of the two key contracts it needed to meet its full year expectations had been signed.
Pennant said in its interim results in September that its outcome for 2015 would be dependent on it winning two contracts worth an overall GBP15.0 million.
One of those deals has been secured, but the other has not, though the company remains confident the second, with an unnamed client in the Middle East, will be won eventually.
Still, the delays to these contracts have hit its results for the second half of 2015, meaning its loss in the second half will be much wider than in the first half, even though its overall cash position will have improved.
Pennant added it has won a two-year extension to its contract for the Flight Simulation and Synthetic Trainers Project Team, worth GBP2.4 million, and said its order book for 2016 and 2017 remains robust.
Shares in the company slumped on Friday morning, though, down 15% to 41.30 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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