(Alliance News) - Pennant International Group PLC announced on Thursday that challenges around contracts had negatively impacted its full-year results.
Shares in Pennant were down 5.3% at 32.20 pence on Thursday afternoon in London.
The Cheltenham, England-based training technology and product support provider said it expects revenue of GBP16 million in 2021. In 2020, Pennant reported revenue of GBP15.1 million. This would represent a 6% increase year-on-year.
Pennant continued that it expects a narrowed loss before interest, tax, depreciation and amortisation of GBP600,000. The previous year, the company reported an underlying loss before interest, tax, depreciation and amortisation of GBP1.0 million.
The company explained that trading had improved in the second half of 2021, generating positive Ebitda of GBP400,000 in the period between July 1 to December 31.
Pennant said this improvement was lower than budgeted due to challenges with its MTE programme and the timing of contract awards.
The MTE programme is a contract for electro-mechanical trainers for armoured fight vehicles. It was awarded to the company in 2015 by US-based aerospace and defence company General Dynamics Corp.
The company said the challenges with its MTE programme mainly included supply chain issues, Covid impacts and global shortages. It added that all devices under the programme are now expected to be delivered during the first half of this year.
In regard to contract timing, Pennant said pipeline conversion in the second half was in line with expectations with one exception. It explained that a software and services contract with a new, unnamed customer in the commercial aviation sector was slightly delayed.
The contract had been expected to be awarded to Pennant before year-end but will now fall into the current year. The contract is worth USD1.1 million in the first year and had been budgeted to contribute to the group's 2021 performance.
Pennant added that it expects to publish its 2021 results in May.
By Heather Rydings; heatherrydings@alliancenews.com
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Pennant International (PEN)