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 Shares Traded Last Trade
  -0.50 -1.64% 30.00 16,700 08:15:58
Bid Price Offer Price High Price Low Price Open Price
29.00 31.00 30.50 30.00 30.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 15.06 -3.14 -7.22 11
Last Trade Time Trade Type Trade Size Trade Price Currency
08:15:51 O 7,500 29.30 GBX

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Pennant Daily Update: Pennant International Group Plc is listed in the Software & Computer Services sector of the London Stock Exchange with ticker PEN. The last closing price for Pennant was 30.50p.
Pennant International Group Plc has a 4 week average price of 28.50p and a 12 week average price of 25.50p.
The 1 year high share price is 52.25p while the 1 year low share price is currently 25.50p.
There are currently 36,446,385 shares in issue and the average daily traded volume is 100,445 shares. The market capitalisation of Pennant International Group Plc is £10,933,915.50.
boystown: Tipped by Simon T as a recovery buy, concluding with: "The share price could easily double and more from this point if the contract momentum continues to build"
varies: Not much comfort here with current liabilities still exceeding current assets. I am surprised to read that PEN expects its involvement with the Ajax tank development (or MTE Programme)to come to an end in the first half of 2022 and hope this does prove too optimistic. Once this happens, we should see a return to profits.
masurenguy: Interim Results for the six months ended 30 June 2021 Challenging First Half; improved outlook for second half, 'on track' for year as a whole. £1m saving in admin costs being realised; next generation product investment commenced. Commenting on the results, Chairman John Ponsonby said:"The Half Year results mask a particularly encouraging performance from the Group's IPS division, while the decisive actions taken last year to reduce costs resulted in significant savings during the First Half, positioning the Group well for the second half and into 2022." Key points: Financial -- Group revenues for the Period of GBP7.4 million (H1 2020: GBP6.3 million); -- Gross margin of 21% (H1 2020: 18%); -- EBITA loss of GBP1.0 million (H1 2020: loss before interest, taxation and amortisation of GBP2.5 million); -- Loss before tax of GBP1.7 million (H1 2020: loss before tax of GBP3.2 million); -- Savings implemented during 2020 now being realised, with administration costs for the Period of GBP3.2 million against GBP4.3 million for the first six months of 2020 (NB: H1 2020 administration costs included GBP0.5 million of non-underlying costs); -- Net cash generated from operations of GBP0.2 million (H1 2020: cash generated from operations of GBP4.5 million); -- Net debt at Period end of GBP1.9 million (H1 2020: net cash of GBP2 million); -- Trade and other receivables of GBP3.7 million (H1 2020: GBP3.7 million); -- Basic (loss) per share of (4.64)p per share (H1 2020: basic (loss) per share of (8.88)p per share); -- Unrelieved tax losses of GBP4.5 million carried forward (H1 2020: GBP2.8 million). Key points: Operational -- Expansion of Integrated Product Support business, with new customers in new sectors: commercial aviation and private space exploration; -- Commencement of internally-funded development of Omega PS successor product (redesigned to ensure legacy, current and future LSA standards are quickly and easily supported, with a modern, easy to use interface); -- Enhanced operational footprint in Australia and United States to deliver software and consultancy programmes; -- Critical design review successfully passed on UK Helicopter trainer programme, on time and on budget; -- After significant Covid-19 related delays, successful installation and commission of generic training devices in Qatar, enabling revenue to be recognised; -- Completion of build and factory acceptance on products for second Middle East customer, ready for delivery and installation in the second half; -- Continuing challenges on the MTE Programme negatively impacting the financial performance of the Technical Training business; Appointment of John Ponsonby as Chair. John Ponsonby added: "Looking forward, there is much reason for optimism. Recent industry engagements (such as at the DSEI trade show), and the forging of new partnerships with OEMs and other complementary companies, have firmly highlighted that our customer community is highly positive about the Group's approach to technological innovation. We are invested in continuous innovation for both the TTD and IPS product ranges (as evidenced by the commencement of the development of the OmegaPS successor product), and have a pipeline of sales opportunities across the globe. After a challenging First Half, we are pleased that the Company remains on course to meet expectations for the year. The Board is committed to delivering the Group Strategy and is keenly focussed on improving Group performance in 2022. Whilst the last two years have been extremely challenging to all in the Group, the Board is confident that the Group's long-term prospects are positive and I look forward to updating shareholders further in due course."
varies: It looks to me as if PEN will not be paid for its work connected with the Ajax tank until the tank's many problems are resolved. Having paid General Dynamics over £3,000 million so far and needing a new tank soon, it is difficult to see how the Ministry of Defence has any alternative to proceeding as best it can with GD rather than terminate the contract. It seems to be generally acknowledged that the MoD cannot recover the money paid to GD however useless the Ajax tank proves to be and may be obliged to keep paying. The project is unlikely to be completed until 2023 but PEN should recover its expenditure with a profit on top then and so I suppose it cannot write this expenditure off yet.
weatherman: They are now trading below NAV, and if they can meet the full year forecast for +ve EBITA the current price is cheap imo. I may wait until the results before deciding whether to average down. They made over £3m ptf in 2018, above 9p eps. The delay in orders is a bit disappointing, but hopefully will come through later in the year or next.
aqc888: Huge share price movements on very little news flow. I’d say this is oversold and ripe for another Simon Thompson re-tip to see the price surge. This will probably happen when pennant release their next results. I have just under 1% of my portfolio here, not got a great deal of conviction here, but can’t see much justification for the huge share price fall
aqc888: Bought a small amount after reading a Simon Thompson article and sold them incredibly luckily at 49p as I didn’t really know much about Pennant. What’s with the share price fall? Haven’t looked into this in any detail but noticed the dramatic fall. I guess those orders ST mentioned look unlikely now and that’s why it’s fallen?
gersemi: Tipped by the small-cap guru ST in the IC - --- 1 In active contract talks worth “seven figures” in revenue. 2 Contracted order book covers 90 per cent of 2021 estimates. 3 Proforma net cash and access to low-cost debt facilities. Annual results from Pennant (PEN:39p), an Aim-traded supplier of products and services that train and assist engineers in the defence and civilian sectors, were in line with the directors’ guidance given at the interim results (‘Companies on the rebound’, 24 September 2020). A Covid-19 pandemic induced first half underlying operating loss of £2m on revenue of £6m, reversed into a second half operating profit of £1m on revenue of £9.1m. These figures exclude £0.54m of restructuring expenses which will produce £1m of cost savings in 2021. Prospects for the momentum to build are undeniably positive. Firstly, £14.4m of Pennant’s £31m order book is for delivery in 2021 and includes two valuable government multi-year contracts (£5.4m of annual revenue) with the Canadian and Australian defence departments to use Pennant’s Oracle-based OmegaPS software product (reduces the support cost of major capital equipment). The 2021 order book also includes £1.4m of revenue from Absolute Data Group (ADG), a Brisbane-based software company that complements Pennant’s OmegaPS software. ADG helps its client base (military aviation, commercial aerospace, and marine, rail, nuclear and automotive sectors) to manage vast quantities of maintenance and training data. Pennant’s chief executive Phil Walker informed me that ADG, which was acquired for £3.4m last year, is “performing exceptionally well” and is in active contract talks with a US defence original equipment manufacturer (OEM) and an Australian company in relation to contracts worth “seven figures in revenue”. ADG’s North American trading subsidiary accounts for two-thirds of its annual sales. Winning either award would drive up earnings markedly given the high margins earned on software sales. Secondly, having landed a £1.5m training aids contract from a long standing Middle East customer last year, Walker revealed that the balance of the contract (around £3m) needs to be signed by the autumn for it to be fulfilled for the start of the 2022 academic year. Thirdly, Pennant’s £50m bid pipeline includes the 'Major Programme', for which it was 'down-selected' in August 2018. Progress to contract award (£15m to £20m) has been impacted by the UK Government's 'Integrated Review of Security, Defence, Development and Foreign Policy'. The Review was finally published last month and reaffirmed the UK Government's commitment to the relevant military platform. This means that the overarching programme should proceed, albeit Walker doesn’t expect any contract award until the latter part of 2021, at the earliest. Importantly, Pennant has balance sheet flexibility to fulfil its working capital requirements as business ramps up again. Proforma net cash is £1.1m and Pennant has a £4m low-cost bank facility with HSBC. The bottom line is that although house broker WH Ireland’s 2021 revenue estimate of £16m produces a modest pre-tax profit, there is a live chance of material outperformance if ADG lands any one of several live contracts in its pipeline. Buy. -
varies: Although I regret adding to my holding recently, including a purchase at 45p yesterday, I expect to see a recovery over the next 12 months. These results are uninspiring. The contract awards from the MOD are not expected until the autumn but the UK's share of PEN's turnover is less than 50% and we may reasonably hope for good business elsewhere. It is a little worrying to find net current assets reduced from £4400K to £165K and to read that PEN is still "in dialogue" with two businesses which it was thinking of buying 12 months ago. It seems to me that there is a substantial risk here of PEN needing to raise more capital but I intend to hold on.
tole: This was the ST comment from mid late february.. before of course the coronovirus effect. https://www.investorschronicle.co.uk/comment/2020/02/24/follow-the-insiders/ 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.
Pennant share price data is direct from the London Stock Exchange
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