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Didn't expect positive EBITDA, neither for net debt to be reduced so significantly.
Management have done well.
Needs a few contract news to invigorate peeps' interest even more.
Looking forward to positive write-up from Simon Thompson.
Re-entry here.
Nothing new in there, but mention of inflationary pressures and pay rise for employees. Interim results due Sept 21st and EBITDA of £100k expected. Not sure what the full year will look like or if there are any forecasts, but I would expect some more significant orders are needed ahead, for investors to get excited about which is attainable and would likely feed straight to the bottom line.
Hopefully this is just bear market blues, though it seems to have been seller driven, though not huge volume.
Spread has been this wide for quite a while mate
Start of a move to 50p
Hmmmm why would the spread be widened on a stock that has little volume . Here is a company that has a forward order book higher than it's market cap withargins of arou d 50%. And no one is buying..except the directors.... too good to be true?. .
Directors buying.... may know more than onyone else
Quite a flat response - quite surprised
Not sure why this rise on low volume
Superb value here at the moment have added considerably at this level as you say the contracts will be confirmed. I wonder with the current defense issue whether there will be inroads for the company that a month ago were not apparent
We should get the official RNS anytime soon on the finalisation of this Boeing contract and finer details. As far as I can remember Pennant always seems to be stuck in the very small (micro cap) company class with lumpy earnings. What can be done to make this into a formidable small to medium size company? Anyone know who the competitors are and how they are doing with their mkt cap size? Cheers NR
an Aim-traded supplier of products and services that train and assist engineers in the defence and civilian sectors, has been named as a key supplier by Boeing in connection with the “Major Programme” the UK company had highlighted in early December.
Analysts at brokerage WH Ireland expect that the £9m contract will be spread over three years. Pennant will supply simulated training systems for the British Army’s new 50 Apache AH-64E helicopter fleet as part of Boeing’s contract with the UK’s Ministry of Defence.
In a pre-close trading update the previous day, Pennant had revealed that £10m of its £22m contracted order book is scheduled for delivery in 2022, so the additional Boeing contract increases revenue visibility materially – WH Ireland forecast annual revenue of £17m and pre-tax profit of £0.6m in 2022, reversing a £0.6m expected loss in 2021. In addition, a software and analytical services contract with a new customer in the commercial aviation sector has now been signed off and will contribute to the 2022 result. It will contribute revenue of US$1.1m (£0.8m) in its first year. The group’s software division accounted for well over a third of Pennant’s revenue last year and is reaping the benefits of cross-selling opportunities across an enlarged client base.
The shares have started to make headway from the 30p level when I highlighted the potential for an earnings recovery (‘An undervalued micro-cap on the road to recovery’, 22 September 2021). If the contract momentum continues to build, as I expect it will, then expect earnings upgrades to follow.
Importantly, unrealised tax losses of £4.5m carried forward will benefit future taxable profits to accelerate the earnings recovery for the £12.5m market capitalisation company, while net debt of £3.6m is set to be slashed when a £2m cash milestone on a legacy contract is invoiced in the first half of this year. Buy.
https://www.investorschronicle.co.uk/ideas/2022/01/25/pennant-s-recovery-on-track/
** This is before the landing of the 9 million contract with boeing UK and the SP at 30p **
From my lens, Pennant has now turned the corner after a difficult couple of years, a point that is certainly not reflected in its market capitalisation of £11.5m. The IPS division alone is worth more than that as a standalone operation given the high multiples of sales being paid for SaaS businesses. Moreover, unrealised tax losses of £4.5m carried forward will benefit future taxable profits to accelerate the earnings recovery. The share price could easily double and more from this point if the contract momentum continues to build. Recovery buy.
Exactly Bladey - a huge Public Relations boost
It's excellent progress for this company, and a large contract like this with a Major U.S company bodes well for future contracts. Time for this company to upgrade, with a small debt and now cash coming in after the covid disaster most companies faced last 2 years.
It would be nice if ST waited until next week for an update and not spoil the momentum ;) - 2 trades earlier now there are 44. Volume picking up considerably.
I didn’t realise PEN have a YouTube channel with their products: https://m.youtube.com/watch?v=nrHzLPinOU0&t=3s - if anyone is interested.
How things can change in 24hrs, very pleased.
A positive Simon Thompson update would be the icing on the RNS.
Yes I believe he was referring to the Boeing contract which was likely in discussion around that time, but has likely only recently been agreed on. Interesting how there was price monitoring extensions yesterday - Boeing released the news yesterday according to their media relations but unsure at what time… PEN obviously could not release the news before Boeing. It is a significant contract for the company and hopefully more will follow.
37M shares in issue, very low float. This could potentially move very fast north when valuation sets in for just this one Major contract.
Message about underpinning was made in December 21 , is he saying contract with be 2022?
Phil Walker, Group CEO, commented: "Given the length of time since the initial 'down-selection', our budgeting for the next three years had not assumed award of the full scope, and a contract worth in the region of £9 million, if awarded, will be a material win for us and substantially underpin our financial expectations for next year."
It looks a lot more promising. Contract is initially set to 2024 as well. Anybody have live data on prices and volume? This will spike a momentum play for a couple of days I imagine.
Looks good and if £9M see's the company sp at over 50p. With maybe other major contracts to follow
Good news on the long-term Boeing contract. Hopefully will see this move from here.