Pennant Share Discussion Threads

[picnic] 19/6/2024 13:26

Thanks very much for that 40 Fathoms.

[40 fathoms] 19/6/2024 09:50

@Picnic - I have been told that the preliminary results will be released this Friday.

[40 fathoms] 18/6/2024 14:01

Looks like someone with a decent sized holding wanted out in a hurry.

[picnic] 18/6/2024 07:53

Still no results.Any ideas when they might arrive?News of a collaboration with
a AI start up Mission Decisions, who are also working with Aquila learning.

[w t tutte] 13/6/2024 00:53

All gone very quiet here, feels like we are all waiting for the accounts to be published and to see what the new chairman has planned for us.

[40 fathoms] 24/5/2024 06:38

Nice amount subscribed by the board and happy to see the broker switch from WHI to Cavendish, would like to see the NOMAD switch as well.

[w t tutte] 23/5/2024 16:08

They have finally tapped the market. We can now see why their has been a weight on the share price for the last 6 months. They tried to come in December and then again last month with a huge raise for a takeover. For reasons unknown this has been shelved and the old chairman is now exiting.

They have come to market for a modest amount of cash in order to complete the software suite upgrades. Hopefully the share price should go back to trading on news and fundamentals.

[chrisdgb] 23/5/2024 09:58

Now this has calmed down a little, let us hope contract news in the coming months can settle nerves.....

[hastings] 14/5/2024 07:07

Not surprisingly the broker has downgraded the numbers with revenue at £14.8m against the previous £16m, with profit also reduced.

[40 fathoms] 14/5/2024 06:54

Looks like the decks are being cleared and they are going to focus on organic growth and cash flow. Makes a lot of sense to me and yes, I think that is something that will be attractive to larger players.

[hastings] 14/5/2024 06:27

New Chairman is a serious shaker and mover having co-founded Bridgewell Group and a key player at Miton, which remains a major holder at PEN. One does wonder whether PEN may prove attractive now to a larger player in the space!

[w t tutte] 14/5/2024 06:17

Todays RNS

Abandoned M&A
New Chairman in place ahead of schedule
Old Chairman now leaving the board at AGM

Clearly there has been plenty going on in the background ....

[masurenguy] 14/5/2024 06:12

Business Update & Board Change

Pennant International Group plc provides the following update.

Strategic Software Investment

The Group's programme of investment in its proprietary software suite has continued during the first half of the year, following a circa £1.3m investment in 2023, with version 3 of GenS, the equipment configuration management solution, being released as planned on 30 April 2024. The investment programme now moves into the next phase, which will see all three of Pennant's core applications - GenS, Analyzer and R4i - being integrated into one, holistic solution which will provide its customers in defence and other sectors with a powerful, market-leading toolset to manage, model and utilise vast amounts of complex equipment data. The planned investment for 2024 is expected to be similar in quantum to 2023. This 'integrated suite' is targeted for launch by year-end, and marketing and early engagement with key customers has been ongoing since 2022.

Trading & Order Intake

Trading in the year to date has been in line with the Board's expectations although the Group has incurred exceptional, non-recurring costs of circa £0.3 million in relation to aborted corporate activity. Management's assessment is that the Group's key markets are starting to see a significant increase in activity, and in response to customer tenders and requests for proposals, the Group has quoted on over £32 million of new business opportunities during the last six months (spanning the entire spectrum of the Group's product and services offering). That said, the expected level of order conversion has not occurred in the year to date, which is primarily attributable to extended customer procurement timeframes, not the loss of opportunities. While challenging in the short term, it is not unusual for the acquisition of training and support solutions to be finalised after the commencement of the main vehicle/platform purchase.

The Group is continuing to actively progress several material sales prospects with the expectation that these are now likely to crystallise into new orders in the second half of the year. The timing and quantum of these potential awards remains subject to contract and, in certain cases, the completion of processes at defence department and prime contractor level. In the meantime, the Group is actively managing its allocation of resources, for example since the start of the year, giving notice to exit two premises which are not expected to be needed to deliver the pipeline opportunities.

[40 fathoms] 10/5/2024 12:49

well the mood music has certainly changed in the last few days.

[chrisdgb] 10/5/2024 09:46

Which is why I sent the question marks, you seem to be implying something without saying it, if you are still a holder can't you be more specific..?

[w t tutte] 10/5/2024 09:26

@Big7time …. no still here and have not bailed, for my sins.

[big7ime] 10/5/2024 09:15

Tutte, your recent comments suggest you lost faith and bailed having been extremely optimistic a couple of yrs ago when you were last here:



W T Tutte - 21 Jan 2022 - 14:27:48 - 1067 of 1319 PENNANT INT. ; A BARGIN BUY + BIG DIVIDEND - PEN
They have GBP 22 million in existing order book as at the end of December, add to that this @9 million contract and the GBP 1.2 million civilian aviation software contract that has been agreed and is awaiting signature and the order book is now GBP 32 million.

In addition they see a qualified pipeline of opportunities of GBP 14 million on the software side and GBP 25 million on the technical training side. So they are looking at a qualified potential pipeline of close to GBP 40 million and for much of this work they are the incumbent or already selected.

They have been very clear about margins as well they are targeting 40% gross margins on the technical training business and in excess of 60% on the software (integrated product support business.

With a fair wind they could be doing a sustainable pre tax profit of at least GBP 5-6 million rolling forward. On a current market cap of GBP 14 million. A P/E of 10 x does not seem unreasonable to me, that is suggestive of a share price between 145p and 160p. Lots of upside from here.
W T Tutte - 20 Jan 2022 - 15:01:41 - 1060 of 1319 PENNANT INT. ; A BARGIN BUY + BIG DIVIDEND - PEN
Yes, this looks really good and is certainly cheap.

There is £11 million of order book to recognise this year + £2.7 million from the major program that should land in Q1 (9 million over 30 months) + £800k from the commercial aviation contract. So before the end of January they have £14.5 million of locked in. We could well be looking at revenue of almost £20 million for this year. At 40% gross margin that is a GOP of £8 million.

Could well see net profits of @£3 to £4 million. I reckon there is a good chance that this is on a 3x to 4x P/E for 2022.

[aishah] 10/5/2024 08:17

Interesting appointment in the RNS on 24th April:

Appointment of Board Adviser

The Company is delighted to announce the appointment of Rakesh Sharma as an advisor to the Board. Mr Sharma, is a former FTSE 250 CEO with over 30 years' experience in running international hi-tech engineering and manufacturing businesses.

He was instrumental in the growth of Ultra Electronics Holdings plc, the formerly LSE-listed group that specialises in providing engineering solutions for mission-critical systems in the defence, security, critical detection and control markets, latterly serving for six years as Chief Executive. He also sits on the Boards of LSE-listed PayPoint Group plc and Moneysupermarket.com Group plc, and AIM-listed Kromek Group plc and supports a range of small businesses and entrepreneurs in a non-executive capacity.

His deep knowledge and understanding of the defence industry, and the growth of innovative technology and software companies, will be extremely valuable as the Board seeks to implement and execute its strategies in international markets.

[w t tutte] 10/5/2024 01:16

Possibly not without reason .....

[chrisdgb] 09/5/2024 15:22

completely overlooked in this rally........

[w t tutte] 26/4/2024 10:08

No explanation as to why the accounts will be much later than in previous years.

[chrisdgb] 25/4/2024 15:20

Yep........

[arthur_lame_stocks] 25/4/2024 14:25

Are WHI the house broker?

[chrisdgb] 25/4/2024 09:27

WHI reiterate their 65p price target today......