LONDON (ShareCast) - Pennant International Group said on Tuesday that annual pre-tax profits more than doubled as the supplier of logistic services to the transport industry won major contracts.

The company, which serves to defence, rail, aerospace, naval and government departments, reported a pre-tax profit of £1.6m for 2012, up from £0.71m the previous year.

Group revenues increased by 40% to £14.47, supported mainly by the Training Systems Division which saw a 61% jump in turnover of £8.7m.

The business unit secured a number of new contracts including a £1.5m agreement to supply its parachute flight simulation system to Singapore Technology and Technology Agency and a £1.4m deal with BAE Systems for the delivery of training devices to Saudi Arabian Technical Studies Initiative.

This month, Pennant signed its largest contract in its history worth £16m over the next five years for the supply maintenance and support of a suite of training aids.

"The group is well placed with a record order book providing good visibility of revenues through 2013, 2014 and beyond," said Chairman Christopher Powell.

"Relationships with customers are good and the group's products and services are well received. In consequence, the pipeline is strong with good prospects for the short, medium and long term."

The board proposal a final dividend of 1.4p per share, a year-on-year increase of 40%, taking the total to 2.0p.

RD

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