Pennant Share Discussion Threads

[skyship] 16/2/2023 08:40

Tipped by Simon Thompson (IC)...

[robin_lemer] 16/2/2023 08:08

I am a shareholder and am very happy in the jump in today's share price. Is there a new tip or newspaper article recently published

[chrisdgb] 16/2/2023 08:07

Tipped....??

[ga_dti] 13/2/2023 13:23

Latest CEO interview discussing their latest trading update -

[clive7878] 10/2/2023 20:12

Sounds good but then Slp is on a prospective pe of 3, and now on a flat share price.

[big7ime] 10/2/2023 14:52

I can see a turning point finally..

[40 fathoms] 10/2/2023 04:00

It becomes interesting as they move in to a net cash postion, some small M&A could have an impact on their profitability metrics. By spending 2 to 3 million they could easily increase PBT by 250k to 300k per year. That could put a PBT of 1.5 million well with in range for this year. That would drop the P/E from @ 10x to 8.3x. and that would drop to 6.25x in FY 2024.

Furthermore there will be plenty of free cash flow which should allow for multiple small tucking acquistions, when added to a backdrop that is the most supportive it has been since the end of the Cold War this starts to look very, very cheap.

[40 fathoms] 08/2/2023 11:31

Clocktower, not sure W H Ireland agree with you they are forecasting FY 2023 Revenue of 16.5 million, PBT of 1.2 million and Net Cash of 2.1 million.

This is on a current market cap of less than 12 million, a P/E of 10 for 2023 with better to come in 2024.

[oldtimer169] 08/2/2023 10:55

Well the share option hurdles recently bought into by the directors suggest they are up for the challenge!DYOR

[clocktower] 08/2/2023 10:16

I think your running ahead of yourselves, as the revenue needs to recover and it will be another year before it should become truly profitable imo but not out of the woods yet.

DYOR

[40 fathoms] 08/2/2023 08:43

Fair point, they still have the General Dynamics receivable that must get paid at some point, that is @1.8 million and further unmortgaged freehold property of @3.8 million. These two items are 40% of the current market cap.

[oldtimer169] 08/2/2023 08:41

Agreed about the freehold sale but there's more to it than releasing capital.The company profile has altered making the property surplus to rquirements and a greater focus on higher margin business with reduced capital employed going forward.

[wjccghcc] 08/2/2023 08:18

Although the debt was mainly reduced by selling their freehold for 2.1mm.

[40 fathoms] 08/2/2023 08:16

No, if anything they are a bit ahead. Very good to see that they have chewed trough much of the debt and should be moving to a positive net cash position soon and that they have grown the contracted order book.

[rimau1] 08/2/2023 07:54

I’m no longer too close to Pen but aren’t those numbers a miss on ebita?

[chrisdgb] 08/2/2023 07:53

Surely one of the more attractive recovery plays in the market considering the industry backdrop.......

[hastings] 08/2/2023 07:45

Yes, looking like the turnaround is gathering some pace and the shift to higher margin business should bode well for the mid-longer term.

[masurenguy] 08/2/2023 07:30

Although invoiced sales slipped by 14%, gross margins were up over 50%, a positive ebita was achieved, debt was reduced by circa 90%, order book was up by 14% with virtually the equivalent of this years sales already scheduled for delivery next year. A positive momentum continues here.

Trading Update

Pennant International Group provides the following trading update ahead of publication of the Company's full-year results for the year ended 31 December 2022 ("FY22") which it expects to announce during April 2023.

A preliminary unaudited assessment of the Group's trading for FY22 indicates:
-- revenues of circa £13.7m (2021: £16.0m);
-- record gross margin of 42% (2021: 27%);
-- ebita of circa £0.5m (2021: loss before interest, taxation and amortisation of circa £0.8m)
-- net debt at year-end of £0.4m (2021: net debt of £3.5m);
-- 3-year order book at y/e of £25m (2021: £22m), of which £13m is scheduled for delivery in 2023.

Phil Walker, Group CEO , commented: "This is now the third consecutive trading period for which we have reported positive EBITA. The Group's net debt position materially improved during the second half of 2022 and with a re-aligned cost base, much-improved gross margins and a healthy contracted order book, the Group has entered 2023 with a real sense of momentum."

[chrisdgb] 12/1/2023 15:40

Looks a nice non exec appointment....

[hybrasil] 12/1/2023 08:48

Foxtrot Oscar Johnson

[chrisdgb] 04/1/2023 08:07

Don't really understand why this has come back so much.......

[40 fathoms] 24/12/2022 02:40

Despite the fact that this program remains a complete shambles, this trial success is good news for us. Firstly it will mean a payment milestone for GD will have been met and if they have not done so already, General Dynamics will clear their substanital accounts payable to us. Secondly, it seems inevitable that when this enters service there will be numerous rounds of upgrades over the next decade and this will require modification to the Pennant trainers and provide an opportunity to recoup some of the considerable losses made on this program.

The receipt of the GD cash will transform the cash position from tight to very comfortable and will leave management in a strong position to pursue inorganic growth and/or some form of shareholder returns.