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PEN Pennant International Group Plc

29.70
0.00 (0.00%)
28 Mar 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 Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 29.70 29.00 30.40 29.70 29.70 29.70 51,765 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Engineering Services 13.69M -901k -0.0244 -12.17 10.95M
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 29.70p. Over the last year, Pennant shares have traded in a share price range of 25.50p to 41.00p.

Pennant currently has 36,882,438 shares in issue. The market capitalisation of Pennant is £10.95 million. Pennant has a price to earnings ratio (PE ratio) of -12.17.

Pennant Share Discussion Threads

Showing 2576 to 2598 of 2950 messages
Chat Pages: Latest  106  105  104  103  102  101  100  99  98  97  96  95  Older
DateSubjectAuthorDiscuss
20/4/2020
21:26
It has a very mixed record of profitability.
arthur_lame_stocks
20/4/2020
20:22
TBH - I've only been following this for the past 2 weeks and saw it as significant recovery stock...
topnotch
20/4/2020
13:58
Indeed, you could have thought that at 62p 6 months ago. So why not 30p in other 6 months?
farnesbarnes
20/4/2020
13:48
FarnesBarnes >> You know, never catch a falling knife - was waiting to see how low it went then buy on the way up but it recovered too damn fast!
topnotch
20/4/2020
12:01
Well we all knew Simon Thompson was gonna write something positive on results day didn't we..
tole
20/4/2020
11:58
All 135 minutes. What were you doing? Why didn't you put a buy order on?
farnesbarnes
20/3/2020
11:47
remember annual results date has been changed to 20th April. Double check for yourself.
mfhmfh
20/3/2020
11:34
This was the ST comment from mid late february.. before of course the coronovirus effect.



Pennant’s contract momentum building

Pennant (PEN:73p), an Aim-traded supplier of products and services that train and assist engineers in the defence and civilian sectors, has made an earnings accretive acquisition, won several new contracts and entered 2020 with a bumper three-year order book worth £33m.

Moreover, having announced new orders for the provision of additional training aids on a Middle East contract, and one with the Australian Defence Force, Pennant has just received a Statement of Intent on a contract with another long-standing customer in the Middle East. The potential award to supply a generic suite of training aids has a contract value of £5m. Assuming it is confirmed in the first half of this year then £3m revenue will be recognised in the second half of 2020.

On this basis, the 2020 order book will cover 85 per cent of analysts’ current year revenue estimate of £22.3m, up from £20m in 2019, which in turn underpins a two-thirds increase in this year’s underlying pre-tax profits (from £1.6m to £2.7m) and earnings per share (EPS) of 6.9p, up from 4.1p forecast in 2019. However, despite the raft of positive news flow, and an impressive conversion of the bid pipeline into confirmed contracts, Pennant’s share price has drifted since I last advised buying at 84p (‘Pennant’s growth back on track’, 4 November 2019).

As a result the shares are only priced on 10.5 times 2020 EPS estimates even though a chunk of this year’s profit growth is already underpinned by substantial cost savings made by the company after the start date on a contingent contract (worth £28m in revenue over three years) was pushed back to 30 June 2020. Please note that Pennant’s £33m contracted order book excludes any contribution from this contingent award for the design, build and delivery of training equipment to the Ministry of Defence (MoD), thus offering upside for outperformance.

Last month’s proposed acquisition of Absolute Data Group (ADG), a Brisbane-based software company, adds further weight to the investment case. It is highly complementary to Pennant’s existing Oracle-based software business that reduces the support cost of major capital equipment. Analyst Nick Spolair at house broker WH Ireland points out that “ADG’s software enables its client base (military aviation, commercial aerospace, and marine, rail, nuclear and automotive sectors) to manage vast quantities of maintenance and training data effectively, and is already being used as a dynamic extension to Pennant’s existing OmegaPS logistics product database.” This means that the combined business has a ready-made client base of new business targets, which already utilise one or the other of their systems.

Furthermore, two thirds of ADG’s revenues are derived from the US where the company has worked with government agencies such as the US Air Force Communications Agency, thus extending Pennant’s geographic reach as well as strengthening its Australian business. The £3.4m consideration, of which half is being paid upfront and the balance is subject to an earn-out, equates to a reasonable 7.3 times ADG’s pre-tax profit in the 2019 financial year.

From a technical perspective, a chart break-out above the 90p key resistance level would be a bullish signal and one that improves the chance of a move towards my 130p target price, albeit that’s below my original 180p target when I initiated coverage (Alpha Company Research: 'Pennant poised for a return to growth', 13 Aug 2018). Pennant’s heavily oversold shares rate a buy ahead of the annual results on 23 March 2020. Buy.

tole
20/3/2020
09:32
Had a nibble from here
tole
24/2/2020
12:50
Damn was watching this drift back looking to get in..
tole
24/2/2020
12:25
Really positive write up by ST in the investors chronicle today.
pastybap
03/2/2020
23:56
Well it came and went, unnoticed
Not a bad profit considering the first half, we need confirmation of the Big deal they’ve been gearing up for. Then it’s going to rocket.

big7ime
28/1/2020
16:17
Must be due an update here very soon..
big7ime
21/1/2020
12:12
I found the following from today's announcement to be positive:

- The Acquisition aligns with the Company's strategy, in particular it diversifies and enhances the Group's revenues and reduces reliance on substantial engineered-to-order contracts.

- The Acquisition is expected to be earnings enhancing in the first year (before integration costs)

- ADG operates at higher gross margins that Pennant's existing business lines


All IMHO.

mfhmfh
21/1/2020
08:25
Not an attention grabber clearly but the acquisition this morning looks solid to me, quality earnings at a fair price which is partly subject to performance over 5 yrs.
paleje
08/11/2019
15:49
stream of buys today
mfhmfh
05/11/2019
18:53
From Downing Micro Cap Investment Trust half year Report:

Strong order book and pipeline
Potential delay in significant contract award
Directors buying shares
Acquisitions strengthens offering
Announcement of new contract wins


Progress against investment case

The company has a long trading history, great IP and accreditations. Chairman Simon Moore has invigorated the partly new management team and moved the company's culture and ambitions forward. Interim results announced in September show that trading in the first half was in line with management expectations and previous guidance issued by the company. In the period the group was focused on building a suite of generic training aids and, with this work being recognised as work-in-progress at the end of the period, a pre-tax loss of £1.8 million was recorded, in line with revised guidance. There have been a number of customer-driven timing challenges on specific projects however, the company's strategy is progressing to plan with two acquisitions already completed so far this year. The group is well-positioned to exploit its considerable pipeline which includes over £30 million of single-source opportunities. For us, the attraction of this company is that we think it can continue to invest and see a return above its cost of capital and while improving the quality and diversity of earnings of the business.

mfhmfh
04/11/2019
12:14
Tipped by ST in IC today. short-term target price 130p.
mfhmfh
12/8/2019
14:56
Simon Thompson gave us a boost today in the IC, saying it's a recovery buy. His concluding paragraph:-

True, investors have marked down the shares heavily following Friday’s news and the share price has fallen by 40 per cent since I last suggested buying at 105p (‘Pennant repeat buying opportunity’, 9 May 2019). However, I can still see the company landing the three major contracts I have outlined above to double its three-year contract order book to £72m and underpin a step change in profitability in the years ahead. That possibility is simply not being priced into Pennant's market capitalisation of £23m. Recovery buy.

paleje
12/8/2019
06:08
Oh dear, big time £5k purchases, no conviction there then.
owenski
12/8/2019
06:06
Looks like the Directors agree as they've taken advantage of the drop and bought more shares
dompalmer
11/8/2019
22:35
Except revenue is lumpy and a major contract landing (prospect pipeline is good) changes everything. Management have always been cautious
I think it’s overdone so added to my watchlist

big7ime
09/8/2019
08:41
Thanks for the acknowledgement, doesn't give me any great pleasure though as I said in Post 904, I've met Phil Walker and was impressed with his enthusiasm for revitalising a previously run for management business.

Cash outflow in H1 was significant at approx £3.4m (excluding the acq cost) so any further delays to H2 project timing could be worrying imo. They have overdraft facilities up to £3m so still some headroom.

Delays and re-scoping of projects are normal in Training/Simulation so not a reflection on Pennant.

I do worry though they may have taken on more than they can handle with ASP. I imagine a big drain on management time.

cockerhoop
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