Pennant Share Discussion Threads

[dolittle1] 10/6/2021 08:51

Another ST tip struggling.

[hastings] 29/4/2021 13:17

Spoke with the CEO yesterday, write up for interest.https://martinflitton1.wixsite.com/privatepunter/post/pennant-international-recovery-still-in-play-29-04-21

[mfhmfh] 29/4/2021 08:10

If they can conclude some deals from the pipeline so revenue from this year increases from the current £14m then this will do well. IMHO.

[masurenguy] 29/4/2021 06:37

Cheers gersemi.

[gersemi] 28/4/2021 19:41

Tipped by the small-cap guru ST in the IC - --- 1 In active contract talks worth “seven figures” in revenue. 2 Contracted order book covers 90 per cent of 2021 estimates. 3 Proforma net cash and access to low-cost debt facilities. Annual results from Pennant (PEN:39p), an Aim-traded supplier of products and services that train and assist engineers in the defence and civilian sectors, were in line with the directors’ guidance given at the interim results (‘Companies on the rebound’, 24 September 2020). A Covid-19 pandemic induced first half underlying operating loss of £2m on revenue of £6m, reversed into a second half operating profit of £1m on revenue of £9.1m. These figures exclude £0.54m of restructuring expenses which will produce £1m of cost savings in 2021. Prospects for the momentum to build are undeniably positive. Firstly, £14.4m of Pennant’s £31m order book is for delivery in 2021 and includes two valuable government multi-year contracts (£5.4m of annual revenue) with the Canadian and Australian defence departments to use Pennant’s Oracle-based OmegaPS software product (reduces the support cost of major capital equipment). The 2021 order book also includes £1.4m of revenue from Absolute Data Group (ADG), a Brisbane-based software company that complements Pennant’s OmegaPS software. ADG helps its client base (military aviation, commercial aerospace, and marine, rail, nuclear and automotive sectors) to manage vast quantities of maintenance and training data. Pennant’s chief executive Phil Walker informed me that ADG, which was acquired for £3.4m last year, is “performing exceptionally well” and is in active contract talks with a US defence original equipment manufacturer (OEM) and an Australian company in relation to contracts worth “seven figures in revenue”. ADG’s North American trading subsidiary accounts for two-thirds of its annual sales. Winning either award would drive up earnings markedly given the high margins earned on software sales. Secondly, having landed a £1.5m training aids contract from a long standing Middle East customer last year, Walker revealed that the balance of the contract (around £3m) needs to be signed by the autumn for it to be fulfilled for the start of the 2022 academic year. Thirdly, Pennant’s £50m bid pipeline includes the 'Major Programme', for which it was 'down-selected' in August 2018. Progress to contract award (£15m to £20m) has been impacted by the UK Government's 'Integrated Review of Security, Defence, Development and Foreign Policy'. The Review was finally published last month and reaffirmed the UK Government's commitment to the relevant military platform. This means that the overarching programme should proceed, albeit Walker doesn’t expect any contract award until the latter part of 2021, at the earliest. Importantly, Pennant has balance sheet flexibility to fulfil its working capital requirements as business ramps up again. Proforma net cash is £1.1m and Pennant has a £4m low-cost bank facility with HSBC. The bottom line is that although house broker WH Ireland’s 2021 revenue estimate of £16m produces a modest pre-tax profit, there is a live chance of material outperformance if ADG lands any one of several live contracts in its pipeline. Buy. -

[varies] 28/4/2021 15:50

mcfly I am certainly not seeking to trash this stock. By good fortune I sold over half my holding at higher prices a couple of years ago and have recently been buying these shares back and I intend to retain them indefinitely. 40 fathoms Thank you for your comforting words about the cash position. I hope very much that you are proved right

[40 fathoms] 28/4/2021 14:37

Hard to see why they would need to cash anytime soon. Most of last years loss was non cash, The EBITA loss was actually only 1 million last year. They were profitable in the second half of 2020. Cash flow for last year was strongly positive and net debt dropped. They also mention that they have a new GBP 4 million facility with HSBC and that they received additional cash flow of GBP2.5 million in January. They have somethings to take care of but cash is not one of them.

[dolittle1] 28/4/2021 14:19

Let's see whether they are able to raise money in low 30s.

[varies] 28/4/2021 10:43

Although I regret adding to my holding recently, including a purchase at 45p yesterday, I expect to see a recovery over the next 12 months. These results are uninspiring. The contract awards from the MOD are not expected until the autumn but the UK's share of PEN's turnover is less than 50% and we may reasonably hope for good business elsewhere. It is a little worrying to find net current assets reduced from £4400K to £165K and to read that PEN is still "in dialogue" with two businesses which it was thinking of buying 12 months ago. It seems to me that there is a substantial risk here of PEN needing to raise more capital but I intend to hold on.

[spooky] 28/4/2021 10:41

No real view on the stock but the results were as expected IMO.

[boadicea] 28/4/2021 10:37

Yes - At the time of writing the share had hit a low of 37.5 and then recovered to 41p which I found surprising until I noted the delayed buy (line 34). I call that a bounce (if possibly a dead cat one!) when I had expected a further slide to 35/36p on the disappointing results. However, I have to agree the bounce was not maintained and a further drop is possibly on the cards.

[spooky] 28/4/2021 09:52

'Unexpected bounce'?

[boadicea] 28/4/2021 09:36

Interesting price action with an unexpected bounce after the initial sell-off. Line 34 is almost certainly a buy (1hr delayed). The price recovery appears to be leading the buy/sell ratio - indicating other hidden buys in the pipeline perhaps?

[masurenguy] 19/4/2021 07:26

"The audit is substantially complete, with no material items outstanding. However, to allow some additional time to finalise the process, which is being conducted remotely, the Company will now announce its final results for FY20 on 28 April 2021." RNS: 19 April

[boadicea] 18/4/2021 17:18

Results on Wednesday, I believe.

[mfhmfh] 13/4/2021 12:32

75,000 shares bought at 46.5

[varies] 31/3/2021 14:01

These shares are usually hard to buy but there is a ready supply at the moment. This makes me a little uneasy about the results for 2020 due to announced in 3 weeks time, I believe, but I am increasing my stake all the same whilst the shares are available.

[gengulphus] 23/3/2021 20:53

NYWB, The 1.64 million is listed as a sell on the london stock exchange ? I'm coming very late to this, but no, the London Stock Exchange doesn't list trades as buys or sells. That's for the very simple reason that every trade involves both one person or organisation selling the shares and another buying them - so every trade is both a buy and a sell! I'm guessing that you were using ADVFN's "Trades" facility. If you look at the small print below the trades list, you'll find it says "Trade definitions are based on the mid-price and are indicative only". Which translated means "we're guessing because the trade price was closer to the bid price than to the offer price that the seller was the one who actively pursued the trade, and the buyer was a market maker (or equivalent) who bought the seller's shares because taking the other side of the trade when someone actively wants to buy or sell is what market makers do". That guess is reasonable when the trade size is in the reasonably normal range - though it's not certain to be correct even then (I know this because I have on occasion managed to buy at below the mid price and seen my trade come up on ADVFN marked as a sell - not often, but it does happen). But for exceptionally big trades, such guesses are very unreliable, because exceptionally big trades basically always have a good deal of 'working', negotiating, etc, behind them - i.e. they're practically never done on the simple "one party actively pursued the trade and the other was a market maker (or equivalent) doing routine business as usual" model such guesses assume. Gengulphus

[sphere25] 10/3/2021 12:30

Price is shifting. It is all about whether it can crack that recent high just above 51p to maintain this uptrend. I guess we are taking the RNS today as nothing untoward from a trading viewpoint or they would have surely said something rather than just stating the results are on the 21st April. Noted Canaccord in a few of the ones I have been involved with e.g. NXR and RFX where they have been lobbing too cheap. They appear to sell some at a price point and then move from the offer and sell some more at higher price points, as and how the demand comes in rather than staying static at one price point to lob the lot like some large sellers do. They have clearly given alot of NXR away cheap and the same might soon be said about RFX. PEN looks alot riskier but it strikes you that Canaccord appear to buy enormous stakes, almost too many in some of these small caps and are now re-assessing the risk of such overly long positions and scaling back at depressed valuations. It looks like they have spooked holders of DUKE today by beginning to lob there. Similar thing with an oversized position and selling well off pre-covid highs. All imo DYOR

[masurenguy] 09/3/2021 07:13

Me too Martin ! 🙂

[hastings] 09/3/2021 07:11

I'll side with Miton on this Mas!

[masurenguy] 09/3/2021 07:08

Interesting - Canaccord Genuity have reduced their stake by circa 34% and Premier Miton have picked up most of those shares up, increasing their stake by 74% !

[masurenguy] 08/3/2021 16:35

Hopefully we should see the final results at the end of this week. They were issued on 12 March in 2017/18/19 and only delayed to 20 April last year due to the onset of the pandemic.