Pennant Share Discussion Threads

[grosvenor] 12/3/2019 07:14

Results look good "EPS more than double "DYOR

[mfhmfh] 08/2/2019 14:24

good volume today. waiting for that big deal to conclude. should be in H1 this year.

[cfro] 08/2/2019 11:14

On the march this morning. I suspect might be mentioned in the paper publication of IC out today?

Good to see the completion of the acquisition news yesterday.

[mfhmfh] 05/2/2019 18:52

re-tipped by ST in today's IC.

[cfro] 05/2/2019 17:30

A welcome pick-up today in the share price

Good to see the support from Downing and Pershing in the placing.

[cockerhoop] 30/1/2019 10:23

A few of points i'd make

Of the 690,000 options exercised 633,950 were sold.

No interest from the directors in supporting the placing themselves.

2018 results have been boosted by IFRS 15 effectively double counting some 2017 profits (2017 not restated). Nature of PEN business make IFRS swings significant.

Cash outflow both in H2 and accelerating in H119. Currently £2m cash and additional £1m from placing money not used for acquisition yet they feel they need to expand undrawn overdraft to £3m.

Presumably they will provide training aids for ASP expansion but cash flow will be delayed until student revenue arrives creating potential need for further cash. Along with contingent consideration.

On that basis I followed the option holders out of the door but will follow with interest as was impressed by the new dynamism expressed by Phil Walker when I met and saw him present at Mello Hever last Summer.

[interceptor2] 29/1/2019 19:55

Interesting placing news today and as cfro noted I trust management can see the potential in the acquisition target.

I noted that directors are selling some options but will give them the benefit of the doubt for now, the last placing on 15th August 2016 at 55p saw the share price slightly undercut the placing price and the CEO sold 1.0m shares in the placing which persuaded me to sell my holdings at the time, which proved a poor decision, so hopefully 110p will act as support again this time.

[cfro] 29/1/2019 14:07

Placing over-subscribed. Always good to see that.

[shanklin] 29/1/2019 08:39

Interesting that option holders are exploiting the placing to execute and sell their shares.

[cfro] 29/1/2019 08:18

Placing at 110p to raise £1.8m and acquisition.

I assume the management know what they are looking at with the new acquisition and the potential it has.

Importantly the big Middle East contract is still in negotiations and is likely to land sometime in the first half.

H1 to be loss-making with second half weighting and full-year '19 currently unchanged.

[aishah] 21/1/2019 08:23

Brexit:

"With no significant contracts with customers in EU member states (other than the UK itself), and no material supply chain in the EU, the Group expects that Brexit will have minimal effect on its trading."

Happy to hold and might add more on any weakness.

[cfro] 21/1/2019 08:11

yes, we know that the contract could potentially be announced at any time and perhaps that was the reason why there was nothing in todays statement..

[interceptor2] 21/1/2019 07:57

Good practice to include revenue and profit estimates in a trading update, which shows shows healthy growth yoy.

They did say that the major contract worth between £25m to £30m was expected to be formally announced either late last year or early this year, so could be any time now. Looking at historic contract announcements they have been consistent in delivering promised awards before.

Should underpin growth very nicely.

[modform] 21/1/2019 07:44

Yes cfro, looks good , unfortunately anything but ahead statement seems to drive pi for the exit these days, but gives opportunity for others to build a decent position in such an illiquid stock. The big contract could be announced any time, sitting tight here...

[cfro] 21/1/2019 07:37

Reassuring update nicely 'on track'.

Shame they hadnt given an update on the big Middle East contract and how discussions are going, but with an order book now standing at £37m that should in itself equate to strong growth in revenues and earnings for next year and beyond.

[modform] 08/1/2019 18:52

Start of the next leg up, hopefully... The big contract might happen any day as they are the preferred bidder

[mfhmfh] 30/11/2018 15:26

Great buying/top-up opportunity if it falls further. IMHO.

[cfro] 30/11/2018 13:44

Have PI's missed the recent several large contract news?

[cfro] 21/11/2018 17:35

took advantage of the drop again today and bought more this afternoon.

[cfro] 20/11/2018 17:26

Looks like someone dumping 20k lots caused the drop late this afternoon.

Astonishing that there are sellers around when we have a £40m market cap company winning multiple multi-million $/£ contracts!

[cfro] 09/11/2018 10:10

Thought the share price might extend yesterdays gains after such a great contract announcement for $30m with the Canadian Gov. Not only that but it was also announced that they have won another contract with a new customer with a prime rail car builder for an undisclosed initial sum.

All that plus a further update of the major Middle Eastern contract which is likely to land later this year of early next.

[interceptor2] 08/11/2018 18:09

Great to see more contracts awards here, noticed that the Canadian contract announced today is approximately 50% larger than previous contracts.

Seems the contract sizes are increasing.

[cfro] 08/11/2018 10:50

Wow! Contract win for $30m over five years.

...and we are still waiting for the biggie £25-30m contract that according to today are making good progress on.

Added to my holdings on this news.

[hastings] 08/11/2018 10:45

Very welcome news this morning and nicely reflected in the share price