Pennant is back on course

FLIGHT simulators group Pennant International said it was recovering from the turbulence caused by last year's 11 September terrorist attacks. Chief executive Joe Thompson said forward orders at the Southampton-based firm doubled in the first half of this year while a restructuring drive had cut costs.

Pennant's workforce has been cut by a third to 200 over the Past 18 months and pre-tax losses in the six months to 30 June were 33% lower. The group ran up losses of £2.5m in 2001 after clients deferred planned investment in the aftermath of the US terror attacks.

Thompson said customers remained cautious but Pennant's firm order book should now generate revenues of around £10m. Westland Helicopters has ordered two training systems for its Lynx helicopter while the Canadian government has bought a cockpit procedures training device.

Pennant is also in 'substantive discussions' with aerospace giant BAE Systems to provide a computer-training system for the South African air force.

Turnover in the six months fell to £4.5m from £5.3m but pre-tax losses were cut to £894,000 from £1.3m. Thompson said he was 'pretty confident' of a return to the black in 2003.

'The order book is going up and the relationships are very much stronger and better,' Thompson said.

There is no interim dividend. Pennant's shares were unchanged at 12p, valuing the group at £3.8m.