Contract delays hit Pennant results
By Matt Hall | 21st January 2022
Cheltenham-based training technology and product support provider Pennant International PLC has revealed that challenges around contracts had negatively affected its full-year results for 2021.
The business said its revenues to reach £16m in 2021, a six per cent increase on 2020's figure of £15.1m.
Pennant also said that expected its loss before interest, tax, depreciation and amortisation to narrow to £600,000. In 2020, the firm reported an underlying loss of £1 million.
Trading is said to have improved in the second half of 2021, with a positive Ebitda of £400,000 between July 1 and December 31, but improvements were lower than budgeted due to challenges with its MTE programme and timings of contract deals.
Pennant was awarded the MTE programme contract in 2015 by US defence firm General Dynamics Corp and is for electro-mechanical trainers for armoured fight vehicles.
Challenges for the programme in 2021 are said to be a result of supply chain issues, covid impacts and global shortages. All devices under the programme will now be delivered in the first half of this year.
Pennant added that pipeline conversion in the second half of last year was in line with the group's expectations with one exception: a software and services contract with a new customer in the commercial aviation sector was slightly delayed.
The contract, worth $1.1 million in the first year, had been expected to be awarded to Pennant before year-end but will now fall into the current year.
Phil Walker, Pennant Group CEO said: "2021 was a challenging year for Pennant given the continued impact of the Covid-19 pandemic on our business sector and the wider global economy.
"It is therefore pleasing that momentum has started to build again in our core product offerings and pipeline of new business. The Group continues to focus on its strategic objective of increasing the proportion of revenues which derive from software and services which is intended to deliver significant growth over the medium-term.
"Bid activity is increasing across the Group, and the Board remains very confident of the award of the 'Major Programme' within the first quarter of the year."
The company has also been named today (January 21) as a key supplier by Boeing Defence United Kingdom Limited (BDUK) regarding the award of the long- term services contract for the UK's new Apache helicopter fleet.
Pennant's full year results are expected to be published in May.
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