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key take away is they are confident of the major program in the first quarter which is 9 million
"The Group remains well placed to capture the many opportunities which lie ahead and accordingly, the Board views prospects for 2022 with increasing confidence and looks forward to reporting a significantly improved performance for the current year.
Well we did know it had been a tough year for PEN, but the outlook seems to be improving, against that, the market makers have marked us down pre open,
30p-33p at the moment.
Hi Nick, I’ve bought six times (twice today) since the RNS update early December.
I sold out earlier in the year but feel on the back of the soon to be confirmed contract, PEN are turning a corner, also expecting more contracts to be announced.
2022 could be a very good year to be holding PEN.
All the best Martyn
Moving up on small buys. When (if) that contract lands region of £9m, it will be significant for the company. Hopefully hear of additional contracts from the company in the months ahead.
Recent 3rd December RNS says, they are "confident" a contract in the region of GBP9 million from the UK Ministry of Defence. Should come in the first quarter of 2022. SP has pulled back again since announcement but should get some interest ahead of that and if not, most likely on confirmation. Of course there is a risk it might not happen but the announcement sounded very confident so hopefully they haven't misinterpreted the MOD's communications/intentions here.
In active contract talks worth “seven figures” in revenue.
Contracted order book covers 90 per cent of 2021 estimates.
Proforma net cash and access to low-cost debt facilities
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.
Can not be right with PEN!
Usually 5-6%
Agreed that is good news. I was a touch worried about the large sell last week but must have been done in installments.
Good to see a value investor increasing its stake before results next month.
Possibly, travel restrictions could hinder PEN's ability to provide training (no idea if they can provide it virtually). With high alert Covid, organsations may not have their eye on training as priority and may defer again. Hope I am wrong for the sake of all LTH. PEN's a lovely co. and I hope to be back soon. Decided to bank profits to recycle into other stocks I've been watching. Some lovely £100k buys last week by IIors (?) providing SP support. GLA
Tuck it away. Take an occasional look ...oh it's gone up 50% ! Great - back to bed. Check it out another 2 years - perhaps 100p then?
R1 48.283p
R2 49.567p
R3 52.133p
I agree. I think maybe a long wait on this one.
Seems to have woken up over the past couple of days. Hopefully bodes well for next year.
PEN is a bit of a buy and tuck away stock. Order book is loaded; liquidity is not an issue ; well established ; geographical diveristy ; defence not going away anytime soon ; tons of freehold L + B ; SP pre-covid 80+ so at current SP - assuming PEN can get back to their old glory within 2 yrs - this is a potential multi-bagger. Yes a boring stock ; and yes rev is lumpy but C19 only DEFERRED revenue - it did not lose PEN sales - simply pushed out to a further time. So not a dddd or ncyt, but one for the grandchildren.
Does anyone know why the price went down from +£1.00 to the current levels of + 30 p ?
I've just bought a small amount (so far) after a detailed research. Fundamentals look very good and the strategy of organic growth suits to today's reality. Let's wait for the FY results with profit on the cards and then sp increase towards previous highs.
Excellent news. Expect the re-rating to commence.
Looks like the fundamental are good to strong. Solid balance sheet performance. Should be on a solid road to recovery.
Well oversold, buyers moving taking advantage of the low SP and indicator of director's purchase yesterday. Feel it might reach over £1 before the trading update IMO
Full price paid, seems that it should move north
Seems that has been oversold imo
Seems that has been oversold imio
Looks as if the sunnier uplands have just receeded a year or more into the distance. I think I'll put my shareholding in the folder marked: 'Open in August 2020'.
Share price not fund***