Pennant International Group PLC (LON:PEN) share soared on Friday after the training solutions group said a statement of intent signed in February with a customer in the Middle East had been converted into a contract with an initial order value of £1.5mln.
The initial statement of intent is for the purchase of training aids worth up to £5mln, with the majority of revenues on the order expected to be recognised in 2021 as they are completed and delivered.
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Pennant said the award will take its contracted order book for 2021 to just under £13.5mln, and that it now anticipates the customer will make further purchases in line with the statement of intent, with an additional order expected to be placed later this year or early 2021.
"We are delighted to have secured this new contract, which is testament to our close and long-standing partnership with the customer. It also demonstrates the group's continued ability to convert new opportunities and win new international business which is particularly important in the current economic climate", said chief executive Phil Walker.
Shares in the group surged 30.1% to 46.9p in early trading.