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Started: PJT12, 14 May 2024 14:46
Last post: PJT12, 14 May 2024 14:46
Started: NickRubens, 4 Apr 2024 15:11
Last post: WarrenBuffettisRich, 10 Apr 2024 16:16
Https://www.pennantplc.com/upcoming-exhibition-alert-for-april-may-2024/
See also the number of upcoming exhibition events. They must be fairly optimistic about GenS' prospects.
I noticed on LinkedIn that there has been a few promotions and (seemingly growth) positions adverted recently. This is a positive indication that the business is fairly optimistic.
Agreed we just need some good news come the end of the month for this to significantly rerate. I'd argue this is now a better business than it was 10 years ago when it was worth 90p.
Well, I hold a few ahead of results and mindful the company needs a new decent order or a few of them from somewhere to get it back to decent solid profitability and a dividend return. I keep watching the trades. If I see more buyers coming in then it's likely i'll add a few more. Confidence works wonders sometimes when looking to buy and the market always looks ahead.
This share is so illiquid. I've been watching this for years but am quite likely this price point and the direction the company is going in.
Going to take a punt.
The results will show a big turnaround. That is already known, but perhaps the market will get a reminder and price some optimism in? A little buying today ahead of results, will be interesting to see if that continues as we get nearer.
Started: rivaldo, 5 Jan 2024 10:44
Last post: rivaldo, 5 Jan 2024 10:44
Techinvest had a nice review of the interims in their November issue FYI:
"Pennant has reported solid progress in the first half ended June 30. Revenue for the period was up 2.9% to £7.1m, with 46% of the total generated from software licensing and associated activities. Gross margin reached a record 47% (H1 2022: 41%). EBITDA doubled to £0.8m and the loss before tax was £0.4m compared to a loss of £0.8m a year earlier. Order intake secured during the first half was worth
£6.5m, which resulted in a three-year contracted order book of £25m at the period-end. Net-debt at the end of the first half was £1.9m, down from £4.1m a year earlier.
Management’s plan to re-engineer the business to build on software, services and
other higher-margin work is working well based on recent results. EBITA has been positive now for the last four reporting periods and the strong uptick in gross margin this time is particularly encouraging. Given the burgeoning technological complexity in Pennant’s military, aviation and rail platforms markets, the demand
for innovative integrated product support solutions is only likely to grow, particularly with increasing defence budgets globally.
Small acquisitions are also adding to the momentum and re-shaping of the business. The most recent addition is Track Access Productions in April, broadening Pennant’s existing rail offering and customer base, and adding circa £0.3m of subscription-based recurring revenues. Further positive news since the period-end is that new
orders worth around £1.5m have been secured during July and August. The company also announced a strategic partnership with Aquila Learning to collaborate on a number of projects.
The broker consensus forecast for the current year is for earnings per share of 3.5p rising to 4.2p for fiscal 2024. A prospective P/E of 6.1 for next year looks attractive if the progress in the business can be maintained. We rate the shares
a Strong Hold."
Started: PrivatePunter, 21 Oct 2023 11:31
Last post: PrivatePunter, 21 Oct 2023 11:31
Write up for interest, following a catch up with Phil Walker.
https://martinflitton1.wixsite.com/privatepunter/post/pennant-on-track-21-10-23
Started: NickRubens, 4 Oct 2023 11:12
Last post: crawshaw, 11 Oct 2023 11:05
BGF out? Someone's been buying 10k's all morning.
Seller most likely BGF which is not specific to PEN more its strategy. If so, they will only have around 300k left and obviously someone has taken the 325k today which is a positive for me, probably Chris Mills or Miton.
As for the debt, I've already said as per the company announcement just last week that it is on track to move into net cash by the year end.
I do agree though that a few more sizeable contracts would be useful, so hopefully one or two that PEN is bidding for will come through. It is also quite possible that the follow up relating to GD and the MOD will come PEN's way and on improved terms, given the companies knowledge and experience having already delivered on the first phase.
Well, it's reduced debt by selling shareholder assets and not from earnings. Yes it was surplus but still shareholder value has been depleted. A bit of a share price fall today.
If the forward PE's are to be trusted then maybe it's too early to be gloomy. Needs some significant order wins, still has nearly £2m debt as well.
Not so sure it is struggling, it has reduced debt sharply and and the net cash forecast position is maintained for the full year end, albeit less than previously pencilled in by the broker.
Exiting some of the bigger lumpy business is a calculated move which is why to date they have declined the General Dynamics follow on business.
Software now accounts for 46% of revenue with decent and improved margins along with a building ARR element.
Given the reaffirmed year end outlook the shares trade on a PE of 8, which falls to 7 next year, the latter looks doable given the forward picture, more recent contract wins and sectors it serves.
The property that was sold was surplus to requirements so it made sense to offload it and reduce the debt.
Struggling and in their overdraft by almost £2mill!!
Last post: ripley94, 20 Sep 2023 18:23
Not sure i like this from my broker .
But Analysts expect the price to increase does not state how many on it.
Financial Summary
Last Modified: 12/05/2023
BRIEF: For the fiscal year ended 31 December 2022, Pennant International Group plc revenues decreased 14% to £13.7M. Net loss decreased 44% to £901K. Revenues reflect a decrease in demand for the Company's products and services due to unfavorable market conditions. Lower net loss reflects Other Net Financial Income/Expenses decrease of 21% to £153K (expense), Lease interest decrease of 26% to £55K (expense).
Simon T and all of them buy then tip , might even sell into rise then maybe buy back cheaper.
On 7/2/23 29p , 9/2/23 35p tip news 16/2/23 38p rising all the way to 27/2/23 topping at 41p
Now 36p fell to 35p on 9/6/23.
City types are shameless.
IMO . Don't buy when tipped specially AIM listed. Sell and then buy back if one is luckey.
Yes, Simon T is the main man!
has this been tipped today please ?
Started: Troajan, 26 Jun 2023 14:30
Last post: Troajan, 26 Jun 2023 14:30
Continuing to head in the right direction here.
Last post: threeputt, 16 Feb 2023 22:12
I was already in and went from a loss to a profit today, I figured it had been tipped so I sold and hope to buy back lower. If Simon Thompson is tipping it I'm not even sure I want back in as his tips have been pretty awful of late
in buying after you have missed the start of the tip rise. It may have more legs, but suspect it will be one of the many IC dogs.
Started: Scoobydoo321, 8 Feb 2023 09:07
Last post: Scoobydoo321, 8 Feb 2023 09:39
PEN made £0.1mn in H1 and £0.4mn in H2
This is a slight beat of broker's expectations as laid out here:
For the second half of 2022, WH Ireland expects Pennant to deliver an underlying operating profit of £0.3mn on revenue of £7.1mn; the second half order book materially de-risks these estimates. On this basis, expect pre-tax profit of £0.2mn on revenue of £14mn for the 12-month period.
2023 expected revenue covered with order book already. Looking very good for a recovery.
Part 2 - from Sept 21
The group’s balance sheet is looking in better shape, too. Since the half-year end, the disposal of surplus property has raised £2.1mn, which halved net borrowings to £2mn, and net debt will be cut in half again to £1mn once recently issued invoices are settled within their 30-day payment terms. House broker WH Ireland expects Pennant to have net cash of £0.2mn at the end of 2022, thus allaying concerns that some investors may have about its financial position.
For the second half of 2022, WH Ireland expects Pennant to deliver an underlying operating profit of £0.3mn on revenue of £7.1mn; the second half order book materially de-risks these estimates. On this basis, expect pre-tax profit of £0.2mn on revenue of £14mn for the 12-month period.
Moreover, without the drag of the armoured vehicle contract next year – group gross margin would have been around 45 per cent in the latest six-month period without it – then WH Ireland sees a step change in 2023 profitability, predicting pre-tax profit of £1.2mn on revenue of £16.5mn. Pennant has the benefit of £6.7mn of historic tax losses, so forecast earnings per share (EPS) of 3.1p could accelerate sharply if the ongoing contract momentum is maintained and the group continues to win higher margin software contracts. The business has higher operational leverage, too, having terminated the lease on its Stevenage office, and management is planning to rationalise more properties to realign the cost base to requirements in the post Covid-19 world.
Admittedly, investors have yet to cotton onto the upturn in Pennant’s fortunes: the share price has underperformed the London junior market by nine per cent since the annual results (‘Poised for a profitable recovery’, 25 May 2022) and only trades on a 2023 price/earnings (PE) ratio of 9.5. However, there is solid earnings recovery story unfolding here, and one that should reward bottom fishers. Buy.
From Sept 22 - but still relevant
A below the radar recovery play
A supplier of products and services that train and assist engineers has returned to profit and a growing order book supports forecasts of material profit growth.
September 21, 2022
By Simon Thompson
Adjusted operating profit of £0.1mn reverses loss of £1mn in first half of 2021
Gross margin more than doubles to 41 per cent
Current net debt of £2mn set to be wiped out by year-end
Three-year order book worth £27mn
Pennant (PEN:29p), an Aim-traded supplier of products and services that train and assist engineers in the defence and civilian sectors, reported a small underlying operating profit in the first half of 2022 despite reporting a decline in revenue from £7.4mn to £6.9mn, a reflection of the shift to higher margin software activities and the wind down of an onerous loss-making legacy armoured vehicle contact with the MoD.
Since the start of the year, the group’s software and services business has grown its first half revenue by 40 per cent to £3.6mn, accounting for more than half of group revenue for the first time. This explains why two-thirds of revenue is now recurring in nature, thus removing the lumpiness of contracts that have dogged Pennant in the past.
In addition to offering two proprietary software product suites, OmegaPS (a sophisticated logistics data tool) and R4i (a dynamic technical documentation solution), the group provides repeat consultancy, support and maintenance services on both software suites to many customers, including the Canadian and Australian defence departments and their respective supply bases.
During the summer, Pennant booked £1mn of software and equipment upgrades, lifting the total order intake to £12mn during 2022. The closing three-year order book of £27mn includes £12.2mn of revenue for delivery in 2023, more than half of which is for software related activities. The directors note that the sales pipeline for this side of the business now exceeds £20mn, highlighting multiple opportunities in the United States, Canada and Australia.
Pennant’s technical training business line, focused on the design and build of generic and platform-specific training technologies, is showing momentum, too. Having landed a three-year contract worth £8.8mn to supply simulated training systems for the British Army’s new Apache AH-64E helicopter fleet, the directors note that defence procurement activity continues to increase this year, particularly in relation to new and upgraded vehicle platforms in the UK. In fact, chairman John Ponsonby says that in the “prevailing global security situation, we are seeing real signs that defence procurement programmes are unlocking in our key regions, with several new opportunities already being pursued.” This aligns well with Pennant's training systems engineering capabilities, and prospects to convert some of the £30mn contract opportunities in its sales pipeline.
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.
Started: NickRubens, 29 Jul 2022 10:26
Last post: NickRubens, 29 Jul 2022 10:26
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.
Started: NickRubens, 21 Jul 2022 00:36
Last post: NickRubens, 21 Jul 2022 00:36
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
Started: NickRubens, 27 Jan 2022 11:56
Last post: chique, 15 Mar 2022 11:23
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.
** 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.
Started: 13martyn13, 20 Jan 2022 07:46
Last post: chique, 20 Jan 2022 09:18
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.
Started: RomanPope, 29 Apr 2021 11:32
Last post: 13martyn13, 30 Dec 2021 15:58
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.
Started: Scoobydoo321, 1 Apr 2021 10:36
Last post: Scoobydoo321, 1 Apr 2021 10:36
Can not be right with PEN!
Usually 5-6%
Started: APAcquisitions, 9 Mar 2021 14:22
Last post: MWShares, 9 Mar 2021 17:43
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.
Started: Scoobydoo321, 12 Nov 2020 22:42
Last post: Scoobydoo321, 26 Jan 2021 01:59
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?
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.
Started: DG12, 20 Jan 2021 16:57
Last post: DG12, 20 Jan 2021 16:57
R1 48.283p
R2 49.567p
R3 52.133p
Does anyone know why the price went down from +£1.00 to the current levels of + 30 p ?
Started: HermanusInclusus, 29 Jan 2020 11:54
Last post: HermanusInclusus, 29 Jan 2020 11:54
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.
Started: 50glass, 21 Jan 2020 07:54
Last post: 50glass, 21 Jan 2020 07:54
Excellent news. Expect the re-rating to commence.