Pennant International wins contract, issues upbeat outlook

16th Jun 2016 12:10

(ShareCast News) - Shares in Pennant International are up almost 6% after it won a second contract from Lockheed Martin Mission Systems Corp, and issued a very upbeat trading statement for 2016 and 2017.The latest contract and phasing of others meant Pennan't order book stood at more than £45m, with delivery scheduled as to £17m in 2016, £18m in 2017 and £10m in 2018.Fulfillment of the order book will absorb additional working capital, Pennant said."As a result, and being mindful of other future growth opportunities, the Directors believe that it is in the Company's best interests to retain cash and therefore have decided to suspend the payment of dividends until further notice," the company said.Pennant added that it expected to return to profitability in the six months to 30 June."Directors expect a further substantial improvement in trading in the second half and, based on the level of the confirmed order book, are confident that trading will exceed current market expectations for each of the financial years ending 31 December 2016 and 2017," it said.Meantime, subsidiary Pennant Training Systems won the latest contract, which is to provide a Rotary Wing Rear Crew Winch Trainer in support of Rear-Crew Training for the UK Military Flight Training System.At 12:09 BST, shares in Pennant were up 5.77% to 55p.