REG - Pennant Int. Group - Trading Update

Pennant InternationalAnnouncement

25/07/2024 07:00

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RNS Number : 7165X  Pennant International Group PLC  25 July 2024

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
                     25 July 2024

 

 

 

PENNANT INTERNATIONAL GROUP PLC

(the "Company", the "Group")

 

Trading Update

Pennant International Group plc (AIM: PEN), the systems support and training
solutions company, is pleased to provide a trading update for the six months
ended 30 June 2024 (the "H1 2024").

 

Unaudited financial summary

 

Subject to review, the Group currently expects to report performance in H1
2024 as follows.

 

·       Revenues of £7.4 million (H1 2023: £7.1 million);

 

·       Increased gross margin of 48% (H1 2023: 47%);

 

·       Adjusted EBITDA ((1)) of £0.9 million (H1 2023: EBITDA of
£0.8 million);

 

·       Adjusted EBITA ((2)) of £0.6 million (H1 2023: EBITA of £0.5
million);

 

·       Net debt at 30 June 2024 of £1.6 million (H1 2023: £1.9
million).

 

Strategic Software Investment

 

Further to the Company's announcement of 14 May 2024 (the "May Update"),
investment continues in the Group's proprietary integrated software suite,
which has now been branded 'Auxilium', with circa £0.7 million invested
during the First Half. Unveiling of the suite to industry will take place
during Q4 2024, with release of the full suite expected by year-end.  Further
details on Auxilium can be found here: IPS Solutions - Pennant International
Group plc (pennantplc.com) (https://www.pennantplc.com/ips-solutions/)

 

Order Intake

 

As outlined in the May Update, the Group is continuing to progress several
material sales prospects with a view to converting these into orders in the
second half of the year. The timing and quantum of these potential awards
remains subject to contract and, in certain cases, the completion of processes
at defence department and prime contractor level.

 

The Board notes the UK Strategic Defence Review recently announced by the new
Labour government, and is pleased to see that the new government has committed
to increasing UK defence spending to 2.5% of GDP.

 

Chief Executive Officer, Philip Walker commented:

 

"I am pleased to report ongoing progress in the business, and in particular,
the investment in and development of our new Auxilium software suite, which we
expect to launch in the second half of this financial year."

 

 

1.   Earnings before interest, tax, depreciation and amortization and prior
to circa £0.4 million of exceptional professional and other costs associated
with aborted corporate activity and share placing fees. Profit relating to the
purchase and sale of a leased property of circa £0.2 million is also
excluded.

 

2.   Earnings before interest tax and amortization ("EBITA") and prior to
circa £0.4 million of exceptional professional and other costs associated
with aborted corporate activity and share placing fees. Profit relating to the
purchase and sale of a leased property of circa £0.2 million is also
excluded.

 

 

Enquiries:

 

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

 Mike Brinson, CFO

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

 Mike Coe / Sarah Mather (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)

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

 Joe Walker                                                            Mob: +44 (0)7971 221 972

 

 

Notes to editors:

Pennant International Group plc (AIM: PEN) is a technology driven, leading
global provider of system support 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 lines:

 

• Systems support: 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.

 

• Training solutions: provide hardware, software and virtual solutions,
critical skills training for maintainers and operators of aircraft, ships and
land systems.

 

• Technical services: support all Pennant's software and training solutions
including consultancy, support and maintenance, training and bespoke
development.

 

The Company's full product suite encompasses consultancy, technical
documentation, rail services, training services, and bespoke engineering
solutions.

 

Pennant is strategically focused on sustainable recurring revenue 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
Europe, North America and Indo-Pacific, serving markets with high barriers to
entry often in regulated industries.

 

Pennant - Maximising Operational Efficiency - YouTube
(https://www.youtube.com/watch?v=mzWGdaY8clY)

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