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)
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:
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Pennant International Group plc
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www.pennantplc.com
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Philip Walker, CEO
Mike Brinson, CFO
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+44 (0) 1452 714 914
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Zeus (Nomad)
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www.zeuscapital.co.uk
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Mike Coe / Sarah Mather (Investment
Banking)
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+44 (0) 203 829
5000
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Cavendish Capital Markets Limited (Broker)
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www.cavendish.com
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Ben Jeynes / Callum Davidson /
George Lawson (Corporate Finance)
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+44 (0) 207 220 0500
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Michael Johnson / Dale Bellis /
Sunila de Silva (Sales and Corporate Broking)
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Walbrook PR (Financial PR)
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pennant@walbrookpr.com
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Tom Cooper
Joe Walker
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+44 (0)20 7933 8780
Mob: +44 (0)7971 221 972
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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