Pennant Share Discussion Threads

[chrisdgb] 18/4/2024 16:25

Certainly managed to weaken the share price today with the musings.......

[arthur_lame_stocks] 18/4/2024 14:46

"I believe the CEO is back from his hols"

Ah, good. Back to focussing on his struggling company which has merely limped along achieving nothing for the last ten years. I hear the weather in the Ukraine is pleasant this time of year.

[hastings] 18/4/2024 14:42

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.

[w t tutte] 18/4/2024 12:51

If they are looking at a CR it could be for a number of reasons, maybe they are looking at an acquisition or they are looking to even their cash flow as they have a number of deferred payments to make this year from previous acquisitions.

[chrisdgb] 18/4/2024 12:03

Don't really see why they we need to do that...??

[w t tutte] 18/4/2024 11:54

I find it odd that the share price does not react to the positive drum beat on defence spending, it feels very much like we are pregnant with a capital raise.

[chrisdgb] 28/3/2024 11:35

Feel as though we are seriously poised here for a major leg up....

As with Cohort, contract news could be the catalyst......

[rivaldo] 18/3/2024 11:00

Unusually busy this morning with 213,000 shares traded already and a tick up. Anything brewing?

[hastings] 02/3/2024 12:53

Hopefully not too long until some news!

[chrisdgb] 29/2/2024 14:34

Decent contract news and we can make a push back for the 40p level.....

[rivaldo] 22/2/2024 09:23

Thanks for the info Hastings, looking forward to your write-up.

I've added some more here too on the dip.

[40 fathoms] 11/2/2024 04:25

Winning a share of that £30m would be excellent as the Apache contract starts to roll off towards the end of 2024.

[hastings] 10/2/2024 09:04

I spoke with the CEO on the day of the update, but will wait until the results to compile a write up.I'll merely add for now that they've bid on north of £30m during the last few months, so plenty of potential in buoyant market.Historically, they have a very good record on the win ratio given the niche nature, so a good chance of some decent conversion coming through.On a personal note I've added after the retrace, given the current valuation looks anomalous against expectations and prospects.

[40 fathoms] 10/2/2024 00:33

Link to Directors Talk CEO update after the trading update. Key takeaway seems to be that they are bidding on record amounts of new business and prospects look strong.

[w t tutte] 07/2/2024 08:53

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.

[pireric] 07/2/2024 08:17

That's the problem I have with Pennant. The P&L bottom-line is not impressive (I think broker forecasts down to EPS are too high mechanically), and the FCF is poor given the capitalised R&D that is going on (that is also flattering the P&L EPS)

Hence the net effect from today that the broker is shaving back FCF and net cash forecasts on the back of higher investment.... not sure that's net good.

Eric

[hastings] 07/2/2024 08:02

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.

[40 fathoms] 07/2/2024 07:43

I am happy with the TU, however there is always an issue with the cash. It never come through when or in the amounts it is expected to. I hope that is something they fix once and for all this year.

[eeza] 07/2/2024 07:34

Post year receipts (first 2 weeks Jan) ~£2m to go from net debt YE of £1.9m to net cash £0.3m.

[hastings] 07/2/2024 07:23

Speaking with the CEO this afternoon, so I'll add anything noteworthy for further interest.

[oldtimer169] 07/2/2024 07:21

Nice update

[masurenguy] 07/2/2024 07:12

Trading Update

Record Gross Margin & Return to Operating Profit

Pennant International Group provides the following trading update ahead of the publication of the Company's full-year results for the year ended 31 December 2023, scheduled to be announced in April 2024. The preliminary unaudited assessment of the Group's trading for FY23 indicates:

· Group revenues of £15.5m (2022: £13.7m);
. gross margin of 50%, a record for the Group (2022: 42%);
· adjusted (EBIT) of £0.4m (2022: EBIT loss of £1.0m)
· adjusted (EBITA) of £1.7m (2022: EBITA of £0.5m);
· adjusted (EBITDA) of £2.2m (2022: EBITDA of £1.1m);
· net debt at year-end of £1.9m (2022: net debt of £0.4m)
. post year-end receipts resulting in net cash of £0.3m during week commencing 15 January.

Note: the above results are adjusted for circa £0.3m of exceptional, non-recurring costs, including transaction and integration costs associated with the acquisition of Track Access Productions Limited in April 2022, and professional costs and expenses associated with another, aborted transaction.

Chief Executive Officer, Philip Walker commented: "The Board is very pleased with the Group's positive, and improving, trading performance. The results, which include a return to operating profit and a record gross margin of 50%, are strong indicators that Pennant's growth strategy is delivering."

[eeza] 05/2/2024 14:38

A few good buys, today.

But offer only creeping up, so MM's have a few to unload.

[eeza] 04/2/2024 10:34

4Q Tu was on 8 Feb last year - so maybe this week.

[hastings] 04/2/2024 10:20

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.