UK's Pennant International 2025 revenue falls on contract delays

Pennant International

23/03/2026 07:10

Overview

UK systems support software and training solutions provider's 2025 revenue fell 30% yr/yr to £9.7 mln

Adjusted EBITDA for 2025 moved to a loss of £0.4 mln from prior yr profit

Company strengthened three-year order book and grew software ARR by 26% yr/yr

Outlook

Company expects software ARR to exceed £3.0 mln by end-FY26

Pennant anticipates break-even adjusted PBT in FY26

Company aims to grow software ARR to over £4 mln by 2028

Result Drivers

ENGINEERED PROJECT HIATUS - Revenue fell due to a gap in large engineered project work within Training Systems after completion of a major contract in 2024 and delays in new Defence contract awards

SOFTWARE GROWTH - Auxilium software annual recurring revenue rose 26% yr/yr to £2.4 mln, driven by new customer wins and expansion into new sectors and territories

RESTRUCTURING BENEFITS - Completion of Training Systems restructuring and property disposals reduced administrative costs and are expected to support future profitability

Company press release: ID:nRSW6216Xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
GBP 9.70 mln
FY EBITDA
-GBP 800,000


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Pennant International Group PLC is GBp40.00, about 86% above its March 20 closing price of GBp21.50

The stock recently traded at 61 times the next 12-month earnings vs. a P/E of 460 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)