Pennant International Group PLC (LON:PEN) shares dipped on Monday as the group swung to a loss and said it will not be recommending a final dividend for 2020 in order to preserve cash amid uncertainty caused by the coronavirus pandemic.
For the year ended 31 December 2019, the training solutions provider reported a pre-tax loss of £1.62mln, compared to a £3.2mln profit the year before, while revenues fell to £20.4mln from £21.1mln.
Looking ahead, chairman Simon Moore said the global economic outlook was “highly uncertain”, however with a three-year contracted order book valued at more than £33mln, he said the firm was “confident” that it will continue to have a “solid foundation for our long-term success”.
However, as a result of the uncertainty, Moore said the company believed it was “both prudent and in the company’s and shareholders’ current best interests to retain cash for working capital”, and as a result, it will not be recommending a final dividend for its 2019 financial year.
The chairman added that revenues and profits for the current year are expected to be second-half weighted due to a mix of products and the application of the IFRS 15 accounting standard.
In early trading on Monday, the company’s shares were down 1.3% at 38p.