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PEN Pennant International Group Plc

31.50
1.00 (3.28%)
10 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Pennant International Group Plc LSE:PEN London Ordinary Share GB0002570660 ORD 5P
  Price Change % Change Share Price Shares Traded Last Trade
  1.00 3.28% 31.50 199,621 13:16:50
Bid Price Offer Price High Price Low Price Open Price
31.00 32.00 31.50 30.50 30.50
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Engineering Services 13.69M -901k -0.0244 -12.91 11.62M
Last Trade Time Trade Type Trade Size Trade Price Currency
14:32:32 O 75,000 29.36 GBX

Pennant (PEN) Latest News

Pennant (PEN) Discussions and Chat

Pennant (PEN) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
16:15:0029.3675,00022,020.00O
13:32:3331.01103.10O
13:08:5431.125,2771,642.20O
13:08:3531.8050,00015,900.00O
12:10:3331.2035,28111,007.67O

Pennant (PEN) Top Chat Posts

Top Posts
Posted at 10/5/2024 09:20 by Pennant Daily Update
Pennant International Group Plc is listed in the Engineering Services sector of the London Stock Exchange with ticker PEN. The last closing price for Pennant was 30.50p.
Pennant currently has 36,882,438 shares in issue. The market capitalisation of Pennant is £11,617,968.
Pennant has a price to earnings ratio (PE ratio) of -12.91.
This morning PEN shares opened at 30.50p
Posted at 10/5/2024 10:15 by big7ime
Tutte, your recent comments suggest you lost faith and bailed having been extremely optimistic a couple of yrs ago when you were last here:



W T Tutte - 21 Jan 2022 - 14:27:48 - 1067 of 1319 PENNANT INT. ; A BARGIN BUY + BIG DIVIDEND - PEN
They have GBP 22 million in existing order book as at the end of December, add to that this @9 million contract and the GBP 1.2 million civilian aviation software contract that has been agreed and is awaiting signature and the order book is now GBP 32 million.

In addition they see a qualified pipeline of opportunities of GBP 14 million on the software side and GBP 25 million on the technical training side. So they are looking at a qualified potential pipeline of close to GBP 40 million and for much of this work they are the incumbent or already selected.

They have been very clear about margins as well they are targeting 40% gross margins on the technical training business and in excess of 60% on the software (integrated product support business.

With a fair wind they could be doing a sustainable pre tax profit of at least GBP 5-6 million rolling forward. On a current market cap of GBP 14 million. A P/E of 10 x does not seem unreasonable to me, that is suggestive of a share price between 145p and 160p. Lots of upside from here.
W T Tutte - 20 Jan 2022 - 15:01:41 - 1060 of 1319 PENNANT INT. ; A BARGIN BUY + BIG DIVIDEND - PEN
Yes, this looks really good and is certainly cheap.

There is £11 million of order book to recognise this year + £2.7 million from the major program that should land in Q1 (9 million over 30 months) + £800k from the commercial aviation contract. So before the end of January they have £14.5 million of locked in. We could well be looking at revenue of almost £20 million for this year. At 40% gross margin that is a GOP of £8 million.

Could well see net profits of @£3 to £4 million. I reckon there is a good chance that this is on a 3x to 4x P/E for 2022.
Posted at 24/4/2024 01:08 by 40 fathoms
UK to increase defence spending to 2.5% of GDP .... in the current environment for small caps that news will probably knock another 25% of the share price !

I suspect that some of the current angst is that there is no news on larger contracts that they need in order to replace the Apache work which rolls off towards the end of this year.
Posted at 18/4/2024 16:25 by chrisdgb
Certainly managed to weaken the share price today with the musings.......
Posted at 18/4/2024 14:42 by hastings
Be very surprised if there was a raise now and anywhere around this level, having spoken with the CEO a couple of months back unless something has changed.They should be in an altogether better place financially this year and being at the back end of the defence spend food chain, they should now, at last begin to benefit.I believe the CEO is back from his hols, so results shouldn't be far away.Last year is largely irrelevant though, it's the current year that will determine share price direction.
Posted at 18/4/2024 11:54 by w t tutte
I find it odd that the share price does not react to the positive drum beat on defence spending.
Posted at 07/2/2024 08:53 by w t tutte
I think the other thing is that W H Ireland are desperate to get them to do a placement and make an acquisition. Any share price strength will be hit with a CR in my view.
Posted at 07/2/2024 08:02 by hastings
It has always been an issue for PEN, largely given the nature of the large defence contracts and timing of payments. That said, increased focus on the software element and ARR should mitigate that somewhat going forward and provide for increased visibility.

Broker summary from this morning.

Cross-party agreement that defence is a growing priority, and globally an enhanced focus on defence, are likely to bring further benefits to PEN, which has long-standing relationships with major defence OEMs and with governments in relation to its sophisticated training software and products. We note positive developments on cash post the period end, which more than bring the latest reported net cash position of the company into alignment with our year end forecasts. We anticipate a cash-generative year in FY24E and also that the business will continue to invest in its faster growing and more profitable activities. Our net cash forecast for FY24E is shaved to £1.2m (was: £1.8m) to allow for further investment. This said, we expect that the software investment wave is likely to reduce in the coming year, leading to further increased cash generation and profitability. Otherwise, our forecasts are left intact, and we are encouraged by the management’s statements re the outlook. Our fair value estimate remains at 65p at this point; hence we see good potential upside for the shares.
Posted at 04/2/2024 10:20 by hastings
Nice to see CNC another of my holdings tipped in the Sunday press, so perhaps PEN'S turn isn't too far away!With defence firmly in the spotlight and likely to remain so for sometime to come, the company looks very well placed with other areas such as rail also likely to benefit.Although the full year results aren't far away now, it's the new financial year outlook that should be of real interest and could provide for a quick start to the share price.
Posted at 05/1/2024 10:43 by rivaldo
Techinvest had a nice review of the interims in their November issue FYI:

"Pennant has reported solid progress in the first half ended June 30. Revenue for the period was up 2.9% to £7.1m, with 46% of the total generated from software licensing and associated activities. Gross margin reached a record 47% (H1 2022: 41%). EBITDA doubled to £0.8m and the loss before tax was £0.4m compared to a loss of £0.8m a year earlier. Order intake secured during the first half was worth
£6.5m, which resulted in a three-year contracted order book of £25m at the period-end. Net-debt at the end of the first half was £1.9m, down from £4.1m a year earlier.

Management’s plan to re-engineer the business to build on software, services and
other higher-margin work is working well based on recent results. EBITA has been positive now for the last four reporting periods and the strong uptick in gross margin this time is particularly encouraging. Given the burgeoning technological complexity in Pennant’s military, aviation and rail platforms markets, the demand
for innovative integrated product support solutions is only likely to grow, particularly with increasing defence budgets globally.

Small acquisitions are also adding to the momentum and re-shaping of the business. The most recent addition is Track Access Productions in April, broadening Pennant’s existing rail offering and customer base, and adding circa £0.3m of subscription-based recurring revenues. Further positive news since the period-end is that new
orders worth around £1.5m have been secured during July and August. The company also announced a strategic partnership with Aquila Learning to collaborate on a number of projects.

The broker consensus forecast for the current year is for earnings per share of 3.5p rising to 4.2p for fiscal 2024. A prospective P/E of 6.1 for next year looks attractive if the progress in the business can be maintained. We rate the shares
a Strong Hold."
Posted at 11/9/2023 08:18 by hastings
Agree with that Mas.WH Ireland comment below. Pennant International – PEN - Corporate – New Pennant, new partnership, attractive beachhead in training information management systemsMarket Cap £14m Share Price 38pThis morning's Reach announcement from PEN highlights a further step forward for the company as it continues to grow the software orientation of the business. We anticipate that the new partner, Aquila Learning Ltd, will form an attractive enhancement of PEN's capabilities in training information management systems based on Aquila's Learning and Requirements/Resource/Record Management System (ALaRMS). The agreement is expected to provide a platform for growth to PEN's partner, given PEN's extensive client list in the UK and elsewhere, while from a PEN perspective, it meaningfully extends the company's integrated product software suite in a clearly complementary area, adding to existing strong software-based skill-sets of the company in areas such as analysis and design, modelling and virtual publications / maintenance, together with other virtual databases and channels.This morning's newsflow comes on the back of the company's July 19th update which highlighted significant revenue cover for the current year (90%-plus), revenues 50%-plus recurring in nature, software licencing / related revenues approaching half the total, and a significant upswing from the prior year in profitability and margins. On the latter score, gross margins at 47% in H1-23 play 41% in the previous H1, a significant improvement, while the EBITDA margin doubled YoY and EBITA also rose substantially. WHI view: we view this morning's announcement as a further reflection of the positive direction now taken by PEN – its software activities are much more profitable than the traditional training equipment activities, and this looks to be an excellent fit in that context. We believe that the significant data inputs that PEN currently receives as a matter of course from its clients will now find a further outlet for future activity supportive of PEN's clients. Beyond this, more generally, we note strong statements of progress from OEM's in PEN's core defence sector, including perennial clients of the company such as BAE, and in general a strong platform for growth in areas where PEN's is skilled, such as the efficient use and maintenance of complex equipment ranging from defence to infrastructure, areas which continue to see good growth based on increasing complexity, the enhanced demand for efficiency and the strong defence sector. We retain our £15.5m revenue / £1.3m adj. PBT / 3.5p EPS forecast for the current year unchanged ahead of PEN's interim results, which are expected on September 27th. For the present, we are sticking with our 65p current fair value benchmark.
Pennant share price data is direct from the London Stock Exchange

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