StockMarketWire.com - Training system supplier to the defence and security sectors Pennant International Group warned that it expected its full-year results for 2019 to be materially lower than current market expectations, due to contract delays.

The company said that with its contract for electro-mechnical trainers for the Ajax armoured fighting vehicle, it was responding to a customer request for additional and amended functionality for the training devices.

'Initial assessment of this request has identified that the programme schedule may need to be extended, and it is now anticipated that progress on delivering the contract may be slower than budgeted for the second half,' Pennant said.

There would, however, be a material uplift in revenues not envisaged until the contract was re-based towards the end of the year.

The finalisation of some other, smaller contracts, was also expected to occur later than originally planned.

The company said it now anticipated reporting Ebitda for 2019 as a whole of £1.8m.

It also expected to post an earnings loss in the first half that was 'slightly better' than its expectations, at a deficit of £1.49m.




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