LONDON (ShareCast) - (Sharecast News) - Military training systems supplier Pennant International on Friday warned full year profits would be "materially lower" than expected due to delays in delivering a contract.
The company said it expected to report full year earnings before interest, tax, depreciation and amortisation of £1.8m, adding that its programme schedule for its electro-mechanical trainers for the Ajax armoured fighting vehicle "may need to be extended". Pennant shares plunged by almost a third on the news.

First half results would be "slightly better" than expected, with revenues of £7.25m and an underlying loss of £1.49m, as a result of the change to revenue forecasts on the Ajax programme, the company said in a statement.

Pennant said that progress on delivering the contract "may be slower than budgeted" for the second half, with material uplift in revenues not envisaged until the contract could be re-based towards the year-end. It cited a customer request for "additional and amended functionality for the training devices" for the delay.

The group said its three-year contracted order book was roughly £36m, but also cautioned that a number of smaller potential orders expected to convert in the second half now appeared more likely to be realised next year.

At 1045 BST, Pennant shares were down 28% at 55.50p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE