REG - Pennant Int. Group - Trading & Strategy Update, Notice of Results

Pennant InternationalAnnouncement

19/01/2026 07:00

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RNS Number : 3217P  Pennant International Group PLC  19 January 2026

PENNANT INTERNATIONAL GROUP PLC

("Pennant", the "Company" and together with its subsidiaries the "Group")

 

Trading and Strategic Update

Notice of Results & Investor Presentation

 

Entering 2026 with an improved order book and confidence in the Strategic Plan

 

Pennant International Group plc (AIM: PEN), the systems support software and
training solutions company, provides the following trading update for the year
ended 31 December 2025 ("FY25" or the "Period"). The Group expects to report
trading results for FY25 in line with market expectations, subject to audit.

 

Highlights

 

·       Revenues of approximately £10.0 million (2024: £13.8 million)

·       Annual Recurring Revenue((1)) ("ARR") of £2.4 million from
Auxilium software products, a record for the Group

·       Three-year contracted order book of £23.3 million (2024:
£15.9 million) with £9.7 million scheduled for delivery in 2026

·       Gross margins maintained at circa 50% (2024: 50%)

·       Statutory loss before tax of £2.6 million (2024: £3.0
million)

·       Net debt of £0.2 million (2024: £2.3 million) following the
completion of the property disposal programme and the external funding
provided by the equity subscription and shareholder loan in September and
October respectively

·       Contract wins within the Training Systems segment totaling up
to £9.5 million across the next three years

 

Three-Year Strategy

 

Pennant provides systems support software, technical services & training
solutions to highly regulated industries and major OEMs. Our solutions are
designed to optimize and extend the lifecycle and mission readiness of
critical assets via:

 

·       Maximizing asset availability and end user capability

·       Enablement of data driven decisions

·       Ensuring data integrity and compliance

The Group's principal strategic objectives over the next three years are to:

 

·       Grow software ARR, via organic strategies, to exceed £4
million by the end of 2028

·       Return Technical Service revenues to >£7.0 million by 2028

·       Maintain the deliverable Training Systems order book at
>£5.0 million

·       Achieve adjusted EBITDA margin of 20% and adjusted PBT margin
of 10% by 2028

With a growing proportion of the Group's trading coming from the higher margin
Software and Technical Services segment, together with the cost savings from
the restructuring program carried out in FY24 and FY25, management is
confident of achieving profitable growth over the next three years in line
with the strategic plan.

 

Auxilium Update

 

Pennant has made solid progress in developing its Auxilium product suite -
with successful completion of the integration of GenS and Analyzer, released
to market in H1 2025.

During FY25 we sold Auxilium software into several new territories, including
new customers in the Czech Republic, Denmark, Germany and Finland. The
software has also been successfully deployed into several new adjacent
industries, including Shipping, Robotics and Space.

 

The above has resulted in the growth of the Auxilium user base by 8% and also
in generating ARR of £2.4 million (2024: £1.9 million), a record for the
Group. This growth has been achieved organically, and we continue to see more
opportunities for organic growth from our new go-to-market strategy.

 

The Company expects development expenditure of between £1.2 million - £1.4
million per annum for the foreseeable future as we remain committed to
ensuring that our market leading Integrated Product Support ("IPS") software
products continue to offer exceptional value to existing and prospective
licensees.

 

As part of its organic growth plan Pennant has made significant progress with
its go-to-market strategy, focusing on partnering for success and enabling
Pennant's products to reach new territories, industries, and customers.
Notably in FY25 the Company announced that it had signed a global OEM partner
agreement with Siemens Digital Industries Software, and that it had appointed
sales representatives in South Korea, Japan and India which are expected to be
key markets going forward. Progress is being made on further potential
appointments, and the Company will update the market in the future as
appropriate.

 

As the global defence industry increases its awareness of the need for strong
Integrated Product Support processes and systems, Pennant is well positioned
to support, as we have done with the Canadian and Australian defence forces
for many years.

 

Outlook

 

Pennant enters 2026 with a three-year contracted order book of £23.3 million,
including £9.7 million that is scheduled for delivery in FY26. This
represents approximately 75% of revenue market expectations for FY26 ((2)).

 

Software ARR is expected to grow to exceed £3.0 million by the end of FY26.
This represents accretion to gross margins across the Group and, alongside the
benefits of the 2024/25 cost restructuring, management expects the Group to
return to a break even adjusted PBT in FY26.

 

Through disciplined program management to contract milestones, the Group
expects to achieve a positive operating cash-flow position such that ongoing
investment in Auxilium product development is internally funded.

 

Phil Walker, CEO commented: "2025 was a reset year for the Group following the
major restructure of the Training Systems business. While unexpected delays to
contract awards presented challenges and impacted performance, we made
significant progress in delivering our strategic plan and converting orders.
These achievements have created a strong platform for growth, and we enter
2026 with confidence, underpinned by a robust pipeline and clear market
opportunities."

 

((1)    Annual Recurring Revenue (ARR) is the annualised revenue generated
from software subscriptions and maintenance contracts.)

((2)    FY26 market expectations for revenue at the date of this
announcement is £13.0 million.)

( )

 

Notice of Results

 

Pennant expects to announce Final Results for the year ended 31 December 2025
on Monday 23 March 2026.

 

Investor Presentation: 11.00am on Tuesday 24 March 2026

 

Management will hold an investor presentation to cover the results at 11.00am
on Tuesday 24 March 2026.

 

The presentation will be hosted through the digital platform Investor Meet
Company. Investors can sign up to Investor Meet Company and add to meet
Pennant via the following
link https://www.investormeetcompany.com/pennant-international-group-plc/register-investor
(https://www.investormeetcompany.com/pennant-international-group-plc/register-investor)
.

For those investors who have already registered and added to meet the Company,
they will automatically be invited.

 

Questions can be submitted pre-event to Pennant@walbrookpr.com
(mailto:Pennant@walbrookpr.com)  or in real time during the presentation via
the "Ask a Question" function.

 

Enquiries:

 

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

 Cavendish (Nominated Adviser and Sole Broker)    www.cavendish.com (http://www.cavendish.com)
 Ben Jeynes / Callum Davidson / George Lawson     +44 (0) 207 220 0500

 (Corporate Finance)
 Michael Johnson / Dale Bellis / Sunila de Silva

 (Sales and Corporate Broking)

 Walbrook PR (Financial PR)                       pennant@walbrookpr.com (mailto:Pennant@walbrookpr.com)
 Tom Cooper                                       +44 (0)20 7933 8780

 Marcus Ulker                                     +44 (0)797 122 1972

 

Notes to editors:

Pennant International Group plc (AIM: PEN) is a technology driven, leading
global provider of system support software and services, technical services,
and training solutions. It supports its global customer base in the design,
development, operation, maintenance, and training of complex assets, to
maximise operational and maintenance efficiency.

 

Its key markets include Aerospace, Defence and Rail, and adjacent
safety-critical markets such as Shipping, Nuclear and Space.

 

 The Group addresses the market through three key business segments:

 

•              Auxilium software: a key generator of recurring
revenues through the provision of a suite of software tools designed to help
clients: manage and use complex data; ensure equipment availability at optimal
cost; and comply with industry standards.  Its Integrated Product Support
(IPS) and Integrated Logistics Support (ILS) software and services equips
customers with powerful market-leading toolsets to manage, model and utilise
complex equipment data.

 

•              Technical Services: drives repeatable revenues
through expert support for users of Pennant and third-party solutions
including consultancy, support and maintenance, training and bespoke
development.

 

•              Training Systems: project-based revenues relating
to the design and build of hardware, software and virtual training solutions
for maintainers and operators of aircraft, ships and land systems.

 

Pennant is strategically focused on sustainable recurring and repeatable
revenues and profitability growth, shifting its model towards high margin
software and services. Against a climate of rising defence budgets and the
burgeoning technological complexity of military, aviation and rail platforms,
the demand for these solutions is expected to grow substantially.

 

Headquartered in Cheltenham, UK, the Group operates worldwide, with offices in
the UK, North America and Asia-Pacific, serving markets with high barriers to
entry often in regulated industries.

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