Engineering and Manufacturing
First Brexit then coronavirus but aerospace firm remains confident
One of Gloucestershire’s biggest and most dynamic aerospace and defence firms said it remains confident about the future, despite recent heavy economic flack.
Pennant International has just released its annual results for the year ended December 2019 showing a turnover of £20,429,990.
Its figures show a loss before tax of £1.6 million and is down on 2018’s profit before tax of £3.2 million.
Simon Moore, chairman of Pennant International Group, said: “During the period under review, a number of significant customer-driven challenges developed which slowed progress, incurred additional costs and impacted our overall financial performance.
“Most notably the re-basing of the maintenance training contract for the General Dynamics armoured vehicle programme and delays to the award of the major programme first announced in August 2018, together, had a negative impact on revenues, cashflow and profits for the year as a whole.
“I can confirm that steps have been taken to address these challenges including a wide-ranging cost reduction and restructuring exercise.”
That exercise has so far saved the firm £0.6 million.
“Post period-end, the successful rebasing and uplift of the General Dynamics programme and the announcement of the acquisition of Absolute Data Group and its complementary R4i suite of software products (which will increase our penetration of the US market), and which will be earnings enhancing in the first year, have underpinned our optimism and confidence for 2020 and beyond.”
Mr Moore added: “The group continues to assess and manage the impact of Covid-19 on its business.
As for up-coming Brexit-related turbulence the report said “Pennant has no significant contract with customers in EU member states and no material direct suppliers within the EU.
“The group presently expects that Brexit will have minimal effect on its trading.”
It continued: “With our contracted three-year order book, valued at more than £33 million, the board is confident that the group’s underlying strengths - our long-term customer relationships with governments and major OEMs, specialist services and our quality-assured reputation - will continue to provide a solid foundation for our long-term success.”
Images courtesy of the Pennant Group International's annual report and accounts.