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

Pennant InternationalAnnouncement

19/07/2023 07:00

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RNS Number : 4948G  Pennant International Group PLC  19 July 2023

 

 
 
19 July 2023

 

PENNANT INTERNATIONAL GROUP PLC

 

Trading Update & Notice of Interim Results

 Positive trading momentum maintained; Strong Q2 order intake

 

Pennant International Group plc (AIM:PEN), the IPS software and services
company, is pleased to provide a trading update for the six months ended 30
June 2023 (the "First Half") in line with management expectations. The Company
expects to publish its Interim Results on 27 September 2023.

 

Financial summary

 

A preliminary unaudited assessment of the Group's trading for the First Half
indicates:

 

·       revenues of £7.1 million (H1 2022: £6.9 million) of which
circa 56% are recurring (H1 2022: 65%);

·       gross margin of 47% (H1 2022: 41%);

·       46% of revenues generated from software licensing and
associated activities (H1 2022: 52%);

·     earnings before interest, taxation and amortisation (EBITA) of £0.5
million (H1 2022: EBITA of £0.1 million);

·    earnings before interest, taxation, depreciation and amortisation
(EBITDA) of £0.8 million (H1 2022: EBITDA of £0.4 million);

·       net debt at period end of £1.9 million (H1 2022: £4.1
million);

·       three-year order book at period end of £25 million (H1 2022:
£27 million).

 

Note: the above results are stated before circa £0.1 million of exceptional
transaction and integration costs associated with the acquisition of Track
Access Productions Limited.

 

Major programme update

 

The Company continues to make good progress on its contract with Boeing
Defence United Kingdom Limited (BDUK) for the UK Apache upgrade programme, and
has successfully passed six out of eight scheduled engineering design reviews,
passing four during the First Half. The contract remains on track for
completion in September 2024.

 

Acquisition update

 

The integration of Track Access Productions Limited ("TAP") into the business
has been successfully completed following the acquisition announced on 13
April 2023, bolstering the Group's 'third pillar' of rail products and
services.

 

TAP is delivering revenues in line with management expectations. Pennant's
combined 'Track Access' business - comprising TAP and Track Access Services -
had a successful First Half in respect of order intake and is on course to
deliver turnover of approximately £900,000 for the year ending 31 December
2023, generating an operating profit of approximately £400,000 for the unit.

 

Order intake

 

Further to the announcement of 13 June 2023, which detailed new contract wins,
order intake towards the end of the First Half was strong, with £5.2 million
of new orders received since April 2023 (for total orders during the First
Half of £6.5 million). This trend has continued with a new contract worth
AUD$1.2 million over 12 months secured in early July.

 

Chief Executive Officer, Philip Walker commented: "Positive trading momentum
has been maintained during the period, including the winning of several
significant contracts and further EBITA growth. The successful integration of
TAP has further broadened our rail customer base, diversified our offering and
enhanced the Group's recurring revenues."

 

"We continue to focus on increasing revenues from software and technical
services, and further bolstering our robust order book."

 

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

 

Enquiries:

 

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

 David Clements, Commercial & Risk Director

 Michael Brinson, CFO

 WH Ireland Limited (Nomad and Broker)             www.whirelandplc.com/capital-markets
 Mike Coe / Sarah Mather (Corporate Finance)      +44 (0) 20 7220 1666
 Fraser Marshall / George Krokos (Sales)

 Walbrook PR (Financial PR)                       pennant@walbrookpr.com
 Paul Vann                                        +44 (0)20 7933 8780

 Joe Walker                                       Mob: +44 (0)7768 807631

 

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