Pennant International Group plc, the Gloucester-based business which trains operators and maintainers in the defence and regulated civilian sectors, has released its preliminary results for 2019, reporting Group revenues of £20.4 million.
However, the Group is expected to post a loss before tax of £1.62 million (2018: profit before tax £3.18 million), Underlying earnings for 2019 before interest, tax and amortisation (EBITA) were £1.6 million (2018: £.3.3m).
Simon Moore, Chairman, said: “2019 was a challenging year for Pennant. Delays to expected contract awards and a drawn-out re-basing of a key programme, all conspired to reduce activity levels, slow progress and place margins under increasing pressure.
“During the year, the necessary steps were taken to mitigate these issues including implementation of a wide-ranging cost reduction and restructuring exercise.
“Despite these challenges, the Group has continued to deliver its key services contracts and successfully achieved acceptance of products on a Qatar contract, recognising budgeted revenues and profits during the second half of the year.”
However, Simon warned that in light of the ongoing Covid-19 pandemic, the economic outlook across the globe remains highly uncertain. Much will depend on the stimulus packages that governments make available to support impacted businesses and the wider economy.
He added: “The uncertainty caused by Covid-19 affects Pennant too. However, with a three-year contracted order book, valued at more than £33 million, the Board is confident that the Group’s underlying strengths – our long-term customer relationships with governments and major OEMs, our specialist services and our quality-assured reputation – will continue to provide a solid foundation for our long-term success.”