Pennant International Group PLC Covid-19 Update (5156H)
March 25 2020 - 2:00AM
UK Regulatory
TIDMPEN
RNS Number : 5156H
Pennant International Group PLC
25 March 2020
FOR IMMEDIATE RELEASE 25 March 2020
PENNANT INTERNATIONAL GROUP PLC
Covid-19 Update
Pennant International Group plc ("Pennant", the "Group", or the
"Company"), the AIM quoted supplier of integrated training and
support solutions, products and services which train and assist
operators and maintainers in the defence and regulated civilian
sectors, issues the following Covid-19 update.
Current Risks
The Group continues to assess and manage the impact of Covid-19
on its business. Three key risks to trading and prospects have been
identified so far.
The first is the challenge of holding review events with
customers. Such review events are held, as physical meetings,
through the lifecycle of an engineering programme and frequently
have milestone payments attached (paid by the customer to Pennant
upon successful completion of the review). If the review cannot be
held due to Covid-19 restrictions, cash and revenue associated with
completion of the milestone may be delayed.
The second risk is the inability to gain access to customer
facilities to deliver services. Our 'integrated logistics support'
consultancy services are typically delivered at a customer's site;
if we cannot access the relevant site due to Covid-19 restrictions,
the ability to deliver the services is severely hampered.
Lastly, there is the broader risk that governments and major
OEMs which award contracts to Pennant are, in the shorter term at
least, consumed by their own efforts to deal with Covid-19 and
therefore expected contract awards are consequently delayed until
the pandemic has abated.
Actions Taken
With the first two risks set out above, we are working closely
with the applicable customers to establish solutions so that
reviews and services can be held and provided via remote means. We
are confident that workarounds will be possible (and in some cases,
these are already being implemented) but the impact on the timing
and amount of any affected revenues is not yet clear. The third,
macro risk is less easy for Pennant to directly influence, but we
remain in close contact with key stakeholders to ensure we are
well-informed and remain well-placed for awards.
Simultaneously, we are prioritising the safety and well-being of
our employees and other stakeholders and have implemented
near-total homeworking already.
Financial Position
We are actively focused on cash and cost management across the
business and retain undrawn facilities.
We welcome certain UK Government initiatives to support
businesses in these exceptional times, and we have already utilised
the UK Government's Coronavirus Job Retention Scheme to protect
(and part-fund) the jobs of those employees who are currently
unable to carry out their usual duties due to Covid-19
interruption.
We are also investigating other potential financial options,
including the Coronavirus Business Interruption Loan Scheme, with a
view to securing access to further funding should it be
required.
Outlook
With the UK Government's unprecedented restrictions on travel,
social and business contact, providing forward guidance is
extremely difficult but the Board will be keeping the situation
under very close review. The Company intends to announce
preliminary results for the year ended 31 December 2019 on Monday
20 April 2020 and will provide a further update at that point.
The Board is confident that the Group's underlying strengths -
our long-term customer relationships with governments and major
OEMs, contracted order book, specialist services and our
quality-assured reputation - will continue to provide a solid
foundation for our long-term success.
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
Philip Walker, CEO +44 (0) 1452 714 914
David Clements, Commercial &
Risk Director
WH Ireland Limited (Nomad and www.whirelandcb.com
Broker)
Mike Coe
Chris Savidge +44 (0) 117 945 3470
Walbrook PR (Financial PR) paul.vann@walbrookpr.com
Paul Vann +44 (0)20 7933 8780
Tom Cooper Mob: +44 (0)7768 807631
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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