REG - Pennant Int. Group - Contracts & Order Book Update

Pennant InternationalAnnouncement

23/03/2022 07:00

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RNS Number : 6768F  Pennant International Group PLC  23 March 2022

 

 

FOR IMMEDIATE
RELEASE
 
23 March 2022

 

PENNANT INTERNATIONAL GROUP PLC

 
                       Contracts & Order Book Update

 

 Pennant International Group plc (AIM:PEN)("Pennant", the "Group" or
"Company"), a leading global provider of training technology and integrated
product support solutions, is pleased to provide the following update.

 

Major Programme

 

The contract for the Major Programme has now been formally awarded to Pennant
by Boeing Defence United Kingdom Limited (BDUK).

 

The contract is for the significant redesign and upgrade of several Apache
training devices in support of the UK Apache Mk 2 programme.

 

The contract value is £8.8 million and, being an 'engineered-to-order'
programme, the associated revenue will be recognised over the next three years
on a 'cost-to-complete' basis. Pennant has agreed a milestone payment plan
over the course of the contract with the customer such that additional working
capital facilities should not be required.

 

BDUK is a new customer for Pennant.

 

Other Contract Wins & Order Book

 

The Group has finalised and signed contracts for the supply of software and
services to a new customer in the North American commercial aerospace market
(an opportunity mentioned in the Group's announcement of 20 January 2022). The
contract is worth circa $1.8 million, comprising software licences to be
supplied this financial year, consultancy services and a multi-year
maintenance package.

 

This contract win demonstrates significant progress in the Group's strategy to
increase the proportion of its revenues from civilian customers, which was
further boosted this January when the Group secured circa £200,000 in new
orders from rail industry customers in the UK.

 

Pennant has also received an order worth up to £250,000 from UK Defence for
the supply of the Group's sophisticated, proprietary rotary-wing aircraft
systems training software and related maintenance services.

 

Taking into account orders received since the year-end, the Group's three-year
order book now stands at £32 million (of which circa £13 million is
scheduled for delivery in 2022, and £12 million in 2023).

 

MTE Programme

 

The first of the four devices has now successfully passed Factory Acceptance
Testing (FAT) and has been delivered to the end-user's site. The second device
is currently proceeding through the FAT process. The final two devices (which
are repeat builds of the first two) have been substantially completed and
remain on track to be tested and delivered before the end of the second
quarter. Having now overseen the successful design and build of the 'first
off' devices, Mervyn Skates will step down as Operations Director at the end
of this month.

 

Outlook

 

Commenting on these developments, Phil Walker, Pennant CEO, said: "We are
delighted with these recent contract wins, and the good progress made on the
MTE Programme. They provide an excellent start to the current financial year
and are helping to build firm foundations for the future growth of the Group."

 

 

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014)
("MAR") prior to its release as part of this announcement and is disclosed in
accordance with the Company's obligations under Article 17 of MAR.

 

 

Enquiries:

 

 Pennant International Group plc                    www.pennantplc.co.uk (http://www.pennantplc.co.uk)
 Philip Walker, CEO                                 +44 (0) 1452 714 914

 David Clements, Commercial & Risk Director

 WH Ireland Limited (Nomad and Broker)              www.whirelandcb.com (http://www.whirelandcb.com)
 Mike Coe                                           +44 (0) 20 7220 1666

 Sarah Mather

 Walbrook PR (Financial PR)                         paul.vann@walbrookpr.com (mailto:paul.vann@walbrookpr.com)
 Paul Vann                                          +44 (0)20 7933 8780

 Tom Cooper                                         Mob: +44 (0)7768 807631

 

 

 

 

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