REG - Pennant Int. Group - Major Programme Update

Pennant InternationalAnnouncement

03/12/2021 11:20

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RNS Number : 5355U  Pennant International Group PLC  03 December 2021

FOR IMMEDIATE RELEASE

 

PENNANT INTERNATIONAL GROUP PLC

 

Major Programme Update

 

 

Pennant International Group plc (AIM:PEN)("Pennant", the "Group" or
"Company"), a leading global provider of training technology and integrated
product support solutions, provides the following pipeline update.

 

The Group was 'down-selected' for a major UK defence programme in August 2018
which was, at the time, anticipated to be contracted in that year.

 

The opportunity has since been subject to protracted negotiations between
Pennant's customer and the Ministry of Defence and Pennant itself. This
lengthy process has coincided with the Covid-19 pandemic, and with matters
being paused for a time pending completion of the UK's 'Integrated Review of
Security, Defence, Development and Foreign Policy'. At all points, the timing,
scope and value of any contract award has been subject to contract.

 

With negotiations now believed to be drawing to a close, the Company has
received written notification from the Ministry of Defence that Pennant's
scope of supply will not be as substantial as originally contemplated. The
Group's proposal in respect of certain items continues into final negotiation
and the directors are increasingly confident that a contract (with a potential
value now believed to be circa £9 million) will be secured in the first
quarter of 2022.

 

Phil Walker, Group CEO, commented: "Given the length of time since the initial
'down-selection', our budgeting for the next three years had not assumed award
of the full scope, and a contract worth in the region of £9 million, if
awarded, will be a material win for us and substantially underpin our
financial expectations for next year."

 

 

 

 

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014)
("MAR") prior to its release as part of this announcement and is disclosed in
accordance with the Company's obligations under Article 17 of MAR.

 

 

Enquiries:

 

 Pennant International Group plc                    www.pennantplc.co.uk (http://www.pennantplc.co.uk)
 Philip Walker, CEO                                 +44 (0) 1452 714 914

 David Clements, Commercial & Risk Director

 WH Ireland Limited (Nomad and Broker)              www.whirelandcb.com (http://www.whirelandcb.com)
 Mike Coe                                           +44 (0) 20 7220 1666

 Sarah Mather

 Walbrook PR (Financial PR)                         paul.vann@walbrookpr.com (mailto:paul.vann@walbrookpr.com)
 Paul Vann                                          +44 (0)20 7933 8780

 Tom Cooper                                         Mob: +44 (0)7768 807631

 

 

 

 

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