7th Mar 2016 10:25
LONDON (Alliance News) - Pennant International Group PLC Monday said its current order book for 2016 is encouraging, but warned the overall outcome of the year depends on securing a major new contract, and reported a swing to a pretax loss for 2015.
Pennant supplies logistic support products and services, primarily to the defence, rail, aerospace, naval and government sectors.
Pennant said that whilst its underlying order book for delivery in 2016 and 2017 remains healthy, it is awaiting confirmation for an additional major contract which will provide "substantially greater visibility and a significant contribution to revenues and profits in 2016 and 2017."
The company reported a swing to a pretax loss of GBP2.4 million for 2015 from a pretax profit of GBP2.2 million in 2014, as revenue nearly halved to GBP9.9 million from GBP17.8 million, hit by delays in the award of contracts.
Pennant attributed the delays to the weakness of the oil price, political and economic uncertainty, and the complexities of public sector procurement.
During the year Pennant took steps to cut costs to mitigate this, including reducing headcount in its Training and Data Services divisions.
As a result of the swing to a loss in 2015 the company said it had concluded it would "be prudent" to suspend the payment of its final dividend for 2015.
Shares in Pennant were down 4.9% at 38.50 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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