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
  2.50 5.68% 46.50 1,871,290 14:00:18
Bid Price Offer Price High Price Low Price Open Price
45.00 48.00 46.50 44.00 44.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 20.43 -1.63 -4.16 17
Last Trade Time Trade Type Trade Size Trade Price Currency
16:08:04 O 800 47.00 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 44p.
Pennant International Group Plc has a 4 week average price of 41p and a 12 week average price of 36.50p.
The 1 year high share price is 74.50p while the 1 year low share price is currently 31.50p.
There are currently 36,114,596 shares in issue and the average daily traded volume is 20,707 shares. The market capitalisation of Pennant International Group Plc is £16,793,287.14.
sphere25: Noticed someone coming in for two 100k blocks here at 44p. Price has come off recent highs just above 50p but is starting to form another bullish trend from the bottom of the channel of the recent uptrend. It might have another go at those highs if this larger buys keeps coming in for shares here. All imo DYOR
rimau1: I’ve taken a starter position here this morning and will add on momentum. I like the defence sector and had profits from Chemring to invest and this looks a great niche business with net cash and a strong order book. I am bullish on Australia and the UK defence in particular and Pen has good exposure to both.
hastings: Also bought back in today, after watching and waiting for a while. Fully aware of the negatives such as lumpiness as held for a few years from previous lows and back at these levels I'm happy to put in the bottom draw!2021 should prove a more fruitful year for PEN and increased spend across Defence and Rail here and elsewhere should prove a positive in due course.
sphere25: Popped a little on today's main news headlines. Chart still bearish with a continued downward slant. One of the laggards with no recovery in the price as yet. No significant buying to note so far - dead money atm. Wait and see if it attracts interest at some point. 40p will be key if there is a bullish market view here at some point. On a wider market note, interesting that the US gave up all the gains and ended down on more positive vaccine news yesterday - possibly first signs much is in the price and a pullback on a short term basis. Clearly alot of technically overbought stocks out there so wouldn't be surprised to see some comeback abit as they've gone absolutely bonkers in a flash! This time of year we usually have a little pullback before the Santa rally so perhaps an opportunity to add. All imo
boadicea: Downing have recently reduced. Now we have a very big increase (~6%) by Christopher Powell but as I can see no recent on-market transactions of comparable size I assume that it is a re-arrangment within his 'Concert Party'. See hxxps:// for further information.
wilmdav: I have not seen the Simon Thompson article but expect he has drawn attention to the fact that PEN was profitable in H2, as predicted. Without the exceptional write-offs and restructuring charges they would have been profitable for the whole year. He may also have made contact with the house broker. I hope so because the forecasts for 2020 shown on Sharescope/Sharepad are probably pre coronavirus outbreak. Http:// Click on the Excel sheet tabs to access charts and look especially at H2 figures. (I don't currently hold)
tole: 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.
paleje: 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: 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.
hastings: Had the chance to read Mr Thompson's lengthy piece and very good it is too. My more modest offering may also be of some interest to others. I have also popped a link to my previous piece earlier in the year. Pennant International delivered some very positive interim results earlier this week which set the defence/aerospace focused company well on course to meet the full year guidance.  Once more I have been fortunate enough to catch up with CEO Phil Walker for a few words who was able to expand on some of the highlights for the company along with expectations going forward.  The numbers reported painted a positive picture, as revenue jumped 38% to £13.2m which in turn saw pre-tax profits up 125% to £2.1m resulting in fully diluted EPS of 5.62p.  Walker was understandably pleased with these interim results which have been achieved as the company embarked on a number of strategic changes. The CEO says that its recent expansion programme continues, which will soon see the company further its capacity resulting in a quadrupling of where it was at a few years back.  He also highlights the nature of further investment in personnel,  infrastructure and facilities, including major and senior operational appointments, along with the purchase of an additional freehold property.  The headcount Walker says is now up to 200, with 140 based in the UK whilst the remainder is split between Australia and Canada and the company is still actively recruiting.  Alongside some more sizeable business Pennant has also benefited from a number of smaller contracts which have been achieved in various areas of its expanded operations.  Milestone and final payments on contracts have also come through as expected, particularly from the Middle Eastern clients which has assisted in positive cash generation.  Looking ahead Walker sounds a confident note on prospects, particularly in relation to the two previously named potential contracts, one of which would be worth between £25-£30m to Pennant.  Although always difficult to pin point exactly, the CEO is hoping that confirmation on one or both of the these sizeable contracts will be concluded by the end of Q4, adding that just one of these would underpin the WH Ireland estimate for next year and provide for £21m in revenue and a pre-tax profit of £3.65m. But, given the strength of its pipeline and the obvious activity, it is conceivable that Pennant will win additional business too that could then pave the way for an upgrade on the current 2019 EPS of 10p.  Walker says that the climate remains positive particularly in Australia alongside the UK and although the Middle East spend has been dictated largely by the oil price performance, long term the region remains very positive.  The dilemma in all this that Pennant seemingly faces at the end of the current financial year is whether to reinstate a dividend or not, where WH Ireland has pencilled in a 2p full year payment.  Walker adds it should be interesting come that time, as the company is weighing up the balance of rewarding shareholders with a dividend or holding back its much improved cash position for working capital given the momentum that has been built and the opportunities that exist.  No doubt shareholders will be divided on this issue, but from this writers perspective I would rather the Pennant board hold back on the dividend to maximise its growth prospects that appear to be strong.  It is certainly a different business than when I first took a look and the recent strengthening of its board has clearly further assisted, such as the appointment of a new FD and the drafting in of John Ponsonby (previously MD Leonardo Helicopters UK) as a non exec.  Pennant as I have also penned before is a very much respected player in the industry which although niche, operates in areas where there is an extremely high barrier to entry, particularly regarding its safety and training systems. Rail is also providing an additional boost for the company where although having been active in the sector for twenty years and built up a good pedigree, recent work for Network Rail and openings on H2 suggests there is scope for growth.  And on growth, Pennant has achieved this through organic means, despite the company being open to making future acquisitions if they are the right fit.  WH Ireland has today upped its fair value of the company moving to £1.45p from £1.37p although does add that it sees a significantly greater value opportunity assuming contract conversions.  Although nothing can of course be taken for granted, Walker and his team sound bullish enough on prospects and it would appear to be purely a matter of timing before it can confirm one or both of the recently referred to contracts, which would most likely provide for another lift in the share price.  To recap, these relate to the Middle East- “Letter of Intent” announced earlier in the year, and the provisional “Down-Selection” on a major programme from August. Both of these potential contracts would more than double Pennant's 3-year order book from £31m as noted 06/18, to around £70m, which would open the door to longer-term forecasts and the possible upgrades.  The shares currently stand on a forward PER of 12 at today's price of £1.20p which doesn't look expensive if you believe the business will come through as expected. There is of course an execution risk, which obviously has to be taken on board and that may deter some from buying in at current levels, whilst those sitting on a decent profit may wish to install a stop, should the price begin to drift.  That said, the team have a busy few days in the City doing the rounds where it appears the company is enjoying plenty of support for its recent strategy for growth.  The balance sheet is looking as good as it has in a long time, with no debt and net cash expected to come out at £3.1m rising to £4.5m next year.  Key customers are blue chip players such as BAE Systems, Lockheed, General Dynamics amongst others such as HMRC and ADO (Australian Defence Organisation).    Https://
Pennant share price data is direct from the London Stock Exchange
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