StockMarketWire.com - Training solutions provider Pennant International said it had taken a hit to revenue owing to contract delays and other pressures stemming from the Covid-19 crisis.

The company said it expected revenues for 2020 would not materially increase beyond what was currently budgeted based on existing contracts, namely about £16m for the year.

Pennant said it had already carried out a wide-ranging cost reduction exercise last year due to delays to the award of the major programme, with deeper cuts recently taken to combat the effects of Covid-19.

'An additional review of costs is presently being undertaken to ensure operations remain appropriately streamlined but properly resourced for the delivery of core contracted programmes, with costs aligned to baseline revenues,' the company said.

'Notwithstanding the slowdown caused by Covid-19, in addition to its three-year contracted order book of £33m at last year-end, the group retains a sizeable pipeline of potential contracts, which it will continue to pursue while seeking new revenue opportunities in accordance with its strategy.'

Pennant also announced that it had re-financed with HSBC, ending a long association with Barclays.

HSBC was providing a range of banking facilities including a £4m overdraft at a rate of 1.95% per annum over the bank's base lending rate from time to time.

On another positive note, the company said it had raised a £2 invoice from a General Dynamics contract.

'Achieving a £2m contract milestone and securing an increased overdraft significantly improve the group's cash position, which is particularly important in the current Covid-19 induced climate of slowed revenues and pipeline uncertainty,' chief executive Phil Walker said.

'We continue to work together with our employees, customers and suppliers to manage the direct and indirect impacts of Covid-19.'

'We remain focused on delivering our current contracts, while seeking to convert our pipeline opportunities and win new business across the group.'



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