Pennant International Group PLC Major UK Contract Update & £10m SOI received (2207I)
March 20 2018 - 2:01AM
UK Regulatory
TIDMPEN
RNS Number : 2207I
Pennant International Group PLC
20 March 2018
FOR IMMEDIATE RELEASE 20 March 2018
PENNANT INTERNATIONAL GROUP PLC
Major UK Contract Update:
Re-scoping of major UK Contract completed; contract value
increased by GBP3.5 million
to circa GBP12 million
and
GBP10 million Statement of Intent received from Middle East
Customer
This announcement contains information which, prior to its
disclosure by this announcement, was inside information for the
purposes of the Market Abuse Regulation
Pennant International Group plc ("Pennant" or the "Group"), the
AIM quoted supplier of integrated training and support solutions,
products and services which train and assist engineers in the
defence and regulated civilian sectors, is pleased to provide an
update on one of its key contracts and on its pipeline of
opportunities for future work.
Major Contract Update
The Group's interim results announcement published on 11
September 2017 highlighted that performance of one of its larger
contracts with a major UK prime contractor for electro-mechanical
trainers and courseware (the "UK Contract") had been delayed due to
a re-scoping of the contract requirements.
As confirmed in the Group's preliminary results announcement on
12 March 2018, the re-scoping of the UK Contract has been
successfully completed and work has recommenced on the
contract.
The re-stated UK Contract was executed on 19 March 2018,
concluding the legal formalities of the re-scoping. The contract
value has been increased by GBP3.5 million to reflect the
additional work required.
The overall contract value is now just under GBP12 million with
circa GBP8 million of revenue to be recognised over 2018, 2019 and
2020. With the fundamentals of the re-scoping (including
rough-order-of-magnitude price) having been agreed between the
parties prior to year-end (and a written agreement made on price
early in the new year), the increased value was accordingly
reflected within the order book of GBP34 million previously
announced.
David Clements, Pennant's Commercial & Risk Director,
commented: "We are delighted to have concluded this important
amendment to this key contract and look forward to supporting our
customer in delivering world-class training aids to the UK Armed
Forces."
Statement of Intent received
Furthermore, Pennant has also received a statement of intent
from a major customer in relation to an opportunity to supply its
training aids to an end user in the Middle East region. The
opportunity is anticipated to be worth approximately GBP10
million.
The opportunity remains subject to contract and the statement of
intent does not guarantee that a contract will ultimately be
awarded to Pennant. The timing of any contract award is not certain
but the Group is optimistic about the contract's prospects and
expects to obtain further clarity on the opportunity by the end of
June 2018.
Enquiries:
Pennant International www.pennantplc.co.uk
Group plc
Philip Walker, CEO
David Clements, Commercial
& Risk Director +44 (0) 1452 714 914
WH Ireland Limited www.whirelandplc.com
Mike Coe / Ed Allsopp +44 (0) 117 945 3470
Walbrook PR (Financial paul.vann@walbrookpr.com
PR)
Paul Vann / Tom Cooper +44 (0)20 7933 8780
Mob: +44 (0)7768 807631
This information is provided by RNS
The company news service from the London Stock Exchange
END
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