16th Jun 2016 06:52
LONDON (Alliance News) - Logistics support services firm Pennant International Group PLC on Thursday said it will suspend dividend payments but anticipates its results for 2016 and 2017 will outpace market expectations, as it won a further contract with US defence contractor Lockheed Martin Corp.
Pennant said its order book is now at GBP45.0 million, with GBP17.0 million of this to fall in 2016 and GBP18.0 million in 2017. Pennant said given the working capital required to fulfil these contracts, it has decided to suspend dividend payments until further notice.
However, the group expects to return to profit in the half to the end of June and expects a further improvement in trading in the second half. Given the order book in place, Pennant anticipates it will therefore outpace market expectations for both 2016 and 2017.
This confidence was further boosted by the group's Pennant Training Systems Ltd subsidiary winning a new deal with Lockheed Martin to provide a rotary wing rear crew winch trainer.
In addition to the contract Pennant won with Lockheed in February for training of aircrew and engineering staff, the total deal could be worth in excess of GBP2.2 million.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
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