(Alliance News) - Pennant International Group PLC on Monday predicted a drop in annual earnings and revenue and said that it has secured two new training contracts.
The AIM-listed supplier of training and support solutions said revenue for 2019 is predicted to total GBP20 million, down from GBP21.1 million in 2018. Underlying earnings before interest, tax and amortisation is forecast at around GBP1.6 million, down from GBP3.3 million.
Pennant also said that it will take a property impairment charge of GBP800,000 and a further GBP700,000 expense relating to an ongoing cost cutting exercise in 2019. The ongoing business restructuring is expected to realise gross annualised savings of over GBP1 million for the company.
"With a contracted order book of GBP33 million scheduled for delivery over the next three years, together with a sizeable pipeline of single-source opportunities, the board remains confident of future prospects and of building and delivering long-term shareholder value," Pennant said.
The Cheltenham, England-based company also said that it has been awarded training contracts in Australia and the Middle East.
Pennant Australasia Pty Ltd, the company's Australian unit, has been awarded a contract for the supply of training aids and associated services for aviation technician training for the Australian Defence Force at a new training facility in Nowra, Australia.
The contract is to be delivered over 2020 and 2021. No financial terms of the contract were disclosed.
In addition, Pennant received a GBP1.5 million order to supply training aids to the Middle East. The order includes two new training solutions, including a 'crew escape trainer'. Revenue from the contract will be recognised in 2020.
Pennant shares were trading 2.0% lower at 83.30 pence each in London on Monday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Pennant International (PEN)