Pennant Share Discussion Threads

[hastings] 20/11/2024 09:31

Agreed there.Also, nice to see that they're acting on the presenting front this week too."This week is shaping up to be a busy week at Pennant! We're thrilled to showcase Auxilium, our innovative System Support Software Suite designed to maximize operational efficiency at #TDWLive on the 19th to 21st November. Attendees are in for a treat with two presentations: ?? 20th November, 14:20 - Pennant's Systems Support Software – Auxilium, presented by Stuart Hooker ?? 21st November, 13:15 - Support Solution Modelling & Analysis, presented by Mark Willis MSc CEng FRAeS Additionally, one of our Business Development Managers, Matt Hill will be attending Specialist Defence and Security Convention UK (SDSC-UK) this week. Email [e-mail].

[40 fathoms] 20/11/2024 08:53

It is a good sign that the interim CFO, who is young and has a very decent CV, would want to become permanent after only a few months. It suggests to me that there are not too many nasties lurking in the financials and business outlook is decent.

[chrisdgb] 19/11/2024 09:39

Very interesting insight, thanks........

[hastings] 19/11/2024 08:19

Thanks for posting Simon.Whilst it may not emulate the CNC transformation, it's treading a nice path.A a much strengthened board/management team and an acceleration of recurring revenue and much improved margins, should provide notable upside in due course.

[simon gordon] 19/11/2024 08:12

Rockwood - 19/11/24

Pennant International (Defence training, maintenance and software services): This investment is currently the fund's smallest in NAV weighting, however we have been conducting significant engagement to help the business get to position where it can realistically scale in size and have purchased c.10% of the equity. We believe the CEO and the foundations of the current operating business has the potential to achieve this. Our thesis involves the potential provision of further equity investment to support value creative acquisitions in the defence sector via a 'buy & build' strategy. During the period we provided modest additional financial support, through equity investment, as they handle lumpy contract cashflows. We introduced new highly qualified Board members to the group with the skillsets of UK small company corporate finance, financial experience and defence m&a. Software expertise also joined the Board and an Interim CFO was appointed. Restructuring is underway and the company's pivot to software services almost complete. Rome was not built in a day and Pennant is over 125 years old, but it is about to enter a new chapter, our average price paid is 32.8p to date. On current market expectations, the shares were valued on an EV/Sales of 0.8x for their financial year 2025, at period end.

[40 fathoms] 14/11/2024 00:03

Two units, are now under offer.

[40 fathoms] 09/11/2024 00:56

So having had a bit of a more detailed look at the particulars for the properties that have been reposted. What appears to be missing is the plot vacant land, that had been included in the previous listing package and had an asking price of @225k.

[hastings] 07/11/2024 14:57

May be helpful p1nkfish.https://www.zoopla.co.uk/for-sale/commercial/property/gloucestershire/staverton/

[p1nkfish] 07/11/2024 13:46

Any idea when the property downsize goes through and a rough idea of what cash it may release?

[chrisdgb] 07/11/2024 09:35

Yes, good to see...

[hastings] 07/11/2024 07:10

Rockwood increases again.

[40 fathoms] 05/11/2024 22:28

Just a small observation, either yesterday or today, the 5 units in Cheltenham came off the market. 1 unit, I assume the one held by the 3rd party, remains on the market. Could be various reasons for this but being under offer would be among the more obvious ones.

EDIT - some of the properties have now been reposted individually so it looks like we might in fact be looking at individual unit sales rather than a grouped sale.

[chrisdgb] 30/10/2024 14:09

Clearly not immediate but rising defence budgets tell you everything.....

[hastings] 24/10/2024 14:39

Many thanks for that. A decent sized player and apparently the US military's top supplier of small drones!

[w t tutte] 24/10/2024 14:33

The Auxilium contract is most likely with AeroViroment ... That was the AV maker name that was referred to when they accidentally linked to the wrong presentation some months ago on their website. That had a potential value of £600k against it. I suspect that was for a capital sale and so as they have gone from a subscription, it is likely in the £200k per year range.

[chrisdgb] 24/10/2024 13:42

Nice that the contract could grow, that wasn't mentioned in the RNS.....

[rivaldo] 24/10/2024 13:39

Excellent news re the £4.9m contract win, which per Cavendish could grow to be worth £6m over 5 years.

The US defence win as regards drones is also significant and likely a starter for ten in this sector.

I added in the 24p's, but will hold off on more at present as the MOD contract won't start until next April, and I'm a little concerned that the contract deferrals noted in the interims might have an effect on profits going through H2 and into H1'25, though most 2024 forecast revenues are probably secured now with the Canadian £400k contract win.

[40 fathoms] 23/10/2024 22:24

The Auxilium contract represents a milestone as our inaugural software subscription sale, marking an exciting development for the company.

The GENS contract, together with the forthcoming Challenger 3 contract, will provide three to four years of revenue that more than replaces the revenue from the soon to be concluded Apache contract. Moreover, the enhancements to both the Wildcat and Ajax training platforms that are advancing through the MoD system, point to further training product revenues in the UK.

[hastings] 23/10/2024 19:24

Very welcome news and hopefully a prelude to further contract announcements.The N. America win in particular would appear to bode well for Auxiliam going forwards, (even without financials) particularly in relation to the growing unmanned aerial systems space.Be interesting to know the defence contractor concerned and wondering if it could be Lockheed, a major player in the space which PEN has worked with on previous defence related contracts.

[chrisdgb] 23/10/2024 14:57

Contract news out..............

[hastings] 23/10/2024 06:05

Rockwood adding again!

[40 fathoms] 10/10/2024 07:17

Interesting that they are adding in the market, it would appear they are not expecting to the company to need to undertake another placement any time soon.

[chrisdgb] 10/10/2024 07:07

Interesting........