Pennant International Group PLC Major Programme Update (8241X)
02 Mayo 2019 - 1:00AM
UK Regulatory
TIDMPEN
RNS Number : 8241X
Pennant International Group PLC
02 May 2019
FOR IMMEDIATE RELEASE 02 May 2019
PENNANT INTERNATIONAL GROUP PLC
Major Programme Update
Pennant International Group plc ("Pennant", the "Company" or the
"Group"), the AIM quoted supplier of integrated training and
support solutions, products and services which train and assist
operators and maintainers in the defence and regulated civilian
sectors, provides an update on a potential contract award.
The Group has been down-selected on a major programme as
announced on 9 August 2018. The Group has received notification
that the placing of the Pennant contract is now contingent on the
prospective customer's single-source 'upstream' contract becoming
effective, which may not occur until the second half of 2020.
Pennant is engaging with the prospective customer with a view to
accelerating the award and, as a result of the relationship
established with the prospective customer, is also in discussions
on a number of other opportunities.
The potential value of the contract to Pennant (GBP25 million to
GBP30 million) remains unchanged.
Having initially received confirmation from the prospective
customer that Pennant's contract would be awarded during the latter
part of 2018 (with an aggressive timeline for delivery), the Group
invested in expanding its operational capacity in order to deliver
the contract (and other likely new programmes of work).
Accordingly, while the Group is anticipating record revenues for
2019 (in the region of GBP22 million), costs are presently being
incurred which would not otherwise have been (circa GBP90,000 per
month) which is affecting operating margin. The Company will
commence a cost-reduction exercise in response to this new
timeframe for contract award.
The Board does not expect the potential delay in the contract
award to have a material impact on market expectations for the
current year and, having regard to the Group's pipeline of active
opportunities, remains confident about the Company's prospects for
the future.
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of MAR.
Enquiries:
Pennant International Group plc www.pennantplc.co.uk
Philip Walker, CEO
David Clements, Commercial &
Risk Director +44 (0) 1452 714 914
WH Ireland Limited www.whirelandcb.com
Mike Coe +44 (0) 117 945 3470
Walbrook PR (Financial PR) paul.vann@walbrookpr.com
+44 (0)20 7933 8780
Paul Vann / Tom Cooper +44 (0)7768 807631
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END
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