8th Sep 2014 09:18
LONDON (Alliance News) - Pennant International Group PLC Monday raised its interim dividend for the half year to June 30 by 13%, as it posted a slightly improved pretax profit on improved margins.
Pennant provides management services primarily for the defence, rail, aerospace and naval sectors.
Pennant proposed an interim dividend of 0.9 pence per share, up from 0.8 pence in the previous year.
The company posted a pretax profit of GBP1.2 million, up slightly from GBP1.1 million in the previous year, despite seeing revenue decline to GBP9.6 million from GBP9.8 million, as operating margins improved to 12.35% from 11.60%.
The company secured a GBP1.3 million contract during the period to supply training aids to the Oman Military Training College. It also made good progress towards renewing its contract with the Canadian Department of National Defence for its OmegaPS software suite, which it says has a potential value of CAD20 million over 5 years.
It continued its work on a contract with BAE Systems Australia Ltd to supply and support a suite of training aids for the Australia Defence Force.
Pennant said that its pipeline was active and that there has been significant on-going dialogue with a broad spread of potential customers on a number of opportunities in the defence and rail sectors. It noted that whilst the timing of the opportunities was outside its control, its good relationship with customers and strong balance sheet provided a firm position to realise opportunities when they arise.
Shares in Pennant were trading down 7.5% at 86.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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