Software and training company Pennant International has warned revenues will be “commensurately lower” than expected this year after a key Ministry of Defence contract was hit by delays.<\/p>\n
Its share price opened down more than 20%, before recovering slightly to be around 14% lower by mid-morning.<\/p>\n
The GenFly contract was earmarked to deliver 15% of the company’s annual sales. But the expected August award date of the contract has now been pushed back to “Q4 2025 or later”, resulting in the income slipping into next year.<\/p>\n
Pennant said it is “striving to make rapid progress to contract award on acceptable terms”.<\/p>\n
The \u00a34.9m three-year deal is for a comprehensive technology upgrade of the hardware and software on the RAF\u2019s GenFly (Generic Flying Controls) training system rigs at RAF Cosford, near Wolverhampton.<\/p>\n
Pennant International chief executive Phil Walker added: “While it is disappointing that the GenFly contract will start later than expected, we will push to secure the award as soon as possible, while keeping focus on implementing our Auxilium strategy to achieve long-term growth in our software and services segments.”<\/p>\n
Pennant has also revealed first-half adjusted pre-tax losses increased to \u00a31.7m on revenues of \u00a34.5m.<\/p>\n
It had previously flagged delays in project work in its rail business would contribute to a greater second-half weighting.<\/p>\n","protected":false},"excerpt":{"rendered":"
2025 revenues will be “commensurately lower” than expected, company has warned shareholders<\/p>\n","protected":false},"author":18,"featured_media":24668,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120781],"coauthors":[81],"class_list":["post-26587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-gloucestershire","tag-top-story"],"yoast_head":"\n