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

Pennant InternationalAnnouncement

08/08/2025 07:00

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RNS Number : 5021U  Pennant International Group PLC  08 August 2025

 

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.

 

FOR IMMEDIATE RELEASE
                                                     08
August 2025

 

 

PENNANT INTERNATIONAL GROUP PLC

("Pennant", the "Company", the "Group")

 

Trading Update

 

&

 

Notice of Interim Results

 

Pennant International Group plc (AIM:PEN), the systems support software and
training solutions company, provides the following trading update for the six
months ended 30 June 2025 ("H1 2025").

 

Unaudited financial summary

 

The Group currently expects to report performance for H1 2025 as follows:

 

·        Revenues of £4.5 million (H1 2024: £7.4 million) of which
88% is from software and services;

·        Gross margin of 45% (H1 2024: 48%);

·        Adjusted loss before tax (see note 1) of £1.7 million (H1
2024: loss of £0.4 million);

·        Continued investment in the Auxilium suite of £0.7 million
(H1 2024: £0.7 million);

·        Net debt at 30 June 2025 of £2.0 million (H1 2024: £1.6
million) operating within our Group overdraft facility.

 

Outlook

 

The Company stated in its announcement of 3 July 2025 (the "July Update") that
it expected the 2025 financial year to be second-half-weighted. It was noted
that the GenFly technology upgrade contract was budgeted to contribute up to
15% of full-year revenue (translating to circa 25% of budgeted H2 2025
revenues).  This was based on an August contract award, an intended timeline
confirmed to Pennant in writing by the Ministry of Defence ("MOD").

 

The GenFly contract negotiations with the MOD are continuing, and the Group is
striving to make rapid progress to contract award on acceptable terms, but it
has now become apparent that newly-introduced approval processes within the
MOD are likely to push the August award date into Q4 2025 or later.

 

Accordingly, with GenFly revenues now anticipated to move into 2026 and later
years, the Board expects that 2025 turnover will be commensurately lower than
market expectations.

 

Contracted revenues for 2025 currently stand at circa £9 million. Revenues
from Auxilium software products and maintenance continue to grow, with annual
recurring revenues ("ARR") from this category currently standing at £2.1
million (see note 2). The Group is actively pursuing multiple sales
opportunities to impact 2025 and beyond, while onboarding our new Auxilium
distribution partners (announced on 14 July 2025) to progress the Group's
growth strategy for software and services. A further update on order intake
will be provided with the Interim Results, or sooner as appropriate.

 

Phil Walker, CEO, commented: "While it is disappointing that the GenFly
contract will start later than expected, we will push to secure the award as
soon as possible, while keeping focus on implementing our Auxilium strategy to
achieve long-term growth in our software and services segments. Indeed, it was
pleasing to see the early fruits of these efforts in the achievement of
record-level ARR during the first half and we look forward to materially
growing this number in 2026 and later years."

 

Notice of Results

 

Pennant expects to announce Interim Results for the six months to 30 June 2025
on Tuesday 16 September 2025.

 

Investor Presentation: 11.00am on Wednesday 17 September 2025

 

Management will hold an investor presentation to cover the Interim Results at
11.00am on Wednesday 17 September 2025.

 

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.

 

 

 

Note 1: the loss before taxation is stated prior to circa £0.2 million of
exceptional professional and other costs associated with the restructuring
exercise initiated in H2 2024, £0.2m of acquired intangible amortisation
charge, and a profit relating to the sale of freehold property of circa £0.1
million.

 

 

Note 2: Annual Recurring Revenue (ARR) is the annualised revenue generated
from software subscriptions and maintenance contracts.

 

 

 

Enquiries:

 

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

 David Clements, Company Secretary

 Zeus (Nomad)                                                           www.zeuscapital.co.uk (http://www.zeuscapital.co.uk/)

 Mike Coe / Darshan Patel (Investment Banking)                         +44 (0) 203 829 5000 (tel:+44%20203%20829%205000)

 Cavendish Capital Markets Limited (Broker)                            www.cavendish.com (http://www.cavendish.com/)
 Ben Jeynes / Callum Davidson / George Lawson (Corporate Finance)      +44 (0) 207 220 0500
 Michael Johnson / Dale Bellis / Sunila de Silva (Sales and Corporate
 Broking)

                                                                       pennant@walbrookpr.com (mailto:pennant@walbrookpr.com)

 Walbrook PR (Financial PR)
 Tom Cooper                                                            +44 (0)20 7933 8780

 Joe Walker                                                            Mob: +44 (0)7407 020 470

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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